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Social Enterprise Business Plans

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Social Enterprise Business Plans

Read the case study and budget. Then use evidence to make decisions and build a practical plan for a social enterprise. For open-ended questions, give a clear, reasoned response.

Case study: Second Spin

Layla and Ivy want to start Second Spin, a student-run repair pop-up in their Australian town. Residents can bring small household items and clothing for basic repairs. Customers pay what they can, with a suggested fee of $8 per item. The team aims to reduce usable goods sent to landfill and teach repair skills. Any surplus will buy tools and fund free repairs for people who cannot afford the suggested fee. The team plans to run one Saturday pop-up each month and needs to check whether the idea is financially workable as well as socially useful.

Item

Estimate

Details

Repair-fee income

$8 × 30 repairs

Suggested fee; some customers may pay less

Community grant

$120

One-off support for the first pop-up

Repair materials

$90

Parts, thread and patches

Market table fee

$45

One Saturday

Safety equipment

$35

Gloves and first-aid supplies

Investigate the plan

Use the case study and budget above where relevant.

1.Which statement best describes Second Spin as a social enterprise?

It sells repairs only to maximise profit for its owners.
It trades to support a social and environmental mission, and uses any surplus to further that mission.
It is a government department that provides repairs for everyone.
It is a charity that cannot earn income from customers.

2.Identify one social or environmental problem Second Spin is responding to, and explain how its service could help.

3.Write one specific, measurable and time-bound objective for Second Spin's first six months. Include a measure of its social or environmental impact.

4.Based on the budget, calculate the estimated total income for one pop-up, including the grant. Show your working.

5.Calculate the estimated total costs and the amount left after costs for the first pop-up. Show your working.

6.True or false: the estimated $190 left after costs is guaranteed profit that Second Spin can spend however it likes. Explain your answer.

7.Match each business-plan feature to its purpose.

Mission
Target market
Budget
Strategy

Sets out the actions that will help achieve an objective
Explains the change the enterprise wants to create
Identifies the people likely to use or benefit from the service
Estimates income, costs and financial needs

8.Recommend one practical strategy Second Spin could use to reach more customers or increase its positive impact. Explain how the strategy supports its objective.

9.For a later pop-up, assume the one-off community grant is unavailable. The team expects to repair 30 items, but only 20 customers attend and each pays the suggested $8 fee. Costs stay at $170. Calculate the amount left after costs, then suggest one way to respond without abandoning the mission.

10.Suggest one way to measure whether Second Spin creates positive impact, beyond counting money earned. Explain why your measure is useful.