A business model is how the business intends to create, deliver and capture value. While most micro businesses are concerned with the financial gains, it is as much important to model for social and environmental impact.
What you need to know:
1) Components of a Sustainable Business Model
2) Business Model Canvas
3) Key Performance Indicators
Components of a Sustainable Business Model:
A business in the 21st century is sustainable only if it has a triple-bottom line of financial, social and environmental sustainability across its organisational and operational processes. Every business should have these components
- Demand Driven
- Leverage Technology
- Be Adaptable
- Clean mission & vision
- Simple solution
Business Model Canvas
The BMC is a blueprint for how a business intends to make money and impact. There are nine (9) blocks in a traditional BMC, each describing how to businesses intends to operate. However, a sustainable BMC has eleven (11) to reflect social and environmental impact strategies. It is important for business owners to complete the BMC from right (customer segment) to left, for to define and vet their business strategy.
Key Performance Indicators:
Performance Indicators are clearly identified and quantifiable measures set to evaluate and communicate the success of the business. Your KPIs should be;
- Be well-defined and quantifiable.
- Be communicated throughout your organization and relevant stakeholders
- Be competent to measure your goal
- Be applicable to your Business sector, department or programme
- The impact investing community has various impact measurement frameworks such as GIIRS and IRIS that micro businesses owners can adapt to report their business successes.
Let us know what you think about these practices in the comment section.