Categories
Filling out the Social Business Model Canvas

Surplus

reinvestment, donations, etc

Deciding how you will redistribute any surplus profits you generate in one of the cornerstone goals of social business.  Often, in the early days, most social businesses will not make a surplus and be heavily reliant on grants and donations to continue to operate.  If you do get into a position where you are generating surplus profits, after covering your costs, how might you redistribute your surplus?  Reinvest your surplus into growing your social business?  Make a donation to a social mission-aligned organization? Or other?

Remember that, as a general rule, there are no shareholders in the business for most social business structures. Thus, no one expecting a dividend return on their personal investment.  Also, your Board of Directors are normally acting as volunteers and do not receive compensation.  No one should receive a personal financial benefit from surplus profits, typically, with a social business model.