Hey there, fellow changemakers! I'm sure you have a lot of passion and ideas for making a positive impact in the world. But let me ask you this: do you know what business you're in? And by that, I mean, can you clearly communicate the specific value you offer, who you’re helping, and how you will reach them?
A common mistake for compassionate leaders like us is trying to do too many things at once. It's easy to get excited about new opportunities or partnerships and forget what we're best at. When we spread ourselves too thin, we might struggle to create or grow our social impact.
My first experience in strategic planning at a nonprofit organization was a real eye-opener! I was one of 15 staff members who participated in months of planning discussions with an outside facilitator. The organization’s leadership never met an idea they didn’t love: We ended up with TWENTY-SEVEN goals, no metrics to measure our progress, and no specific plans to achieve those goals. Our facilitator delivered a big, beautiful report printed on fine stationery, which was displayed prominently on the Executive Director’s credenza. We then went back to business as usual and never spoke about most of those goals again.
That early lesson in how not to plan strategy still shapes our approach to planning for greater impact. Don't get me wrong here: I'm all for innovation, experimentation, and growth. But first, you must have a clear vision and a very small number of goals (I recommend no more than three). You need to understand how you create the biggest impact for those you serve and focus your efforts there. That way, you can optimize your resources, leverage your strengths, and create more value for your clients, customers, and beneficiaries.
So how do you know what business you're in? Here are some questions that can help you figure it out:
What big problem are you solving, and who are you solving it for? Maybe you're bringing clean water to small villages or helping single moms start their own businesses.
What makes your solution unique? Perhaps you use solar energy to pump water or offer banking services on people's phones.
How do you know you're making a difference, and how do you communicate your impact? You might count the number of people you've helped, how access to clean water has affected health in the community you serve, or how much money your single mompreneurs have made because of your service.
How do you make money? Do you charge a fee for your services? Do you solicit donations from people who support your cause? Do you serve as a contractor for local, state, or federal grants?
Who else is trying to solve the same problem, and what makes you different and better than the alternatives? Are you competing with other nonprofit groups doing similar work, or are you up against traditional for-profit businesses? Both?
Who helps you achieve your goals, and how do they help? It’s helpful to map out the stakeholder groups who must be satisfied in order for you to succeed. Do you partner with other nonprofits, government agencies, businesses, and other grantmakers? Who else is important to your success?
These are just some of the questions that can help you define your business model and strategy. You won’t necessarily have all the answers right away, but you should have a clear direction and hypothesis. And you should test and validate them as much as possible.
If you have too many answers to these questions, or your answers are too broad to be useful (“We serve everybody!”), you should spend some time narrowing your focus. You’re much more likely to be successful doing just one thing well, rather than doing two or three (or 27) things poorly.
Remember, leading a nonprofit or social enterprise isn't about doing everything for everyone. It's about doing something specific and meaningful for those you serve. To do that well, you need to stay focused and not get sidetracked by side projects that won’t move the needle on your mission.
If you’re ready to sharpen your focus and make a bigger impact, let’s take your strategy to the next level. With the right approach, you can optimize your resources, leverage your strengths, and create more value for those you serve.
CONTACT US TODAY to start your journey toward a more focused and impactful strategy. Together, we can turn your vision into reality and drive the change you want to see in the world.