Getting the right donations – equipment, money or time – can be the key to social enterprise success. It's one of our advantages, as social entrepreneurs, that people tend to like what we're doing. A few weeks ago, a friendly London taxi driver asked me what I did for a living as he took me home, and I explained that the company I'd just started employed homeless Londoners to make furniture using reclaimed materials.
He seemed pretty enthused about the idea – so enthused that when he picked up his next late-night fare, he told his new passengers about the Living Furniture Project, and kept his breathless description (and my free sales pitch) going for almost the whole trip home. It was only towards the end that his fare was able to squeeze a few words in: "Yes, we know that guy. He's our housemate."
Luckily, people's instinctive appreciation for what many social entrepreneurs do is something that works very much to our advantage. Our stories can inspire people to dig deeper and be a little more generous than they would normally be. This can be of special use when you're starting a business and funds are tight. Getting the right donations – equipment, money or time – can be key to success.
With the Living Furniture Project, I secured three premises rent-free for the first six months, convinced a leading industry brand to give us thousands of pounds worth of tools, asked photographers, website developers, film-makers and PR agencies to help us launch a marketing campaign, and even managed to exhibit at some of the UK's largest furniture trade shows at no cost.
I didn't want this article to be about blagging, and some fellow entrepreneurs I spoke to also rejected that word, but I did want to share some tips to pique potential donors' curiosity and inspire generosity. Starting a business is hard, but, with a little help from your friends, here's how you can skip some of the set-up costs and get on with the good stuff.
If you need something, don't ask for it (at first)
This holds true for most forms of entrepreneurship: "Ask for money and you'll get nothing, ask for advice and you'll get money."
Unless you're hanging around outside casinos pestering strangers for cash (and willing to live with the moral consequences), there really is very little chance of finding someone who will hand out money over a speculative social enterprise pitch.
But, if you have access to those people who might be able to help financially, these are probably the kind of people who can also offer advice, networking opportunities, potential sales leads and more.
Talk about this stuff first rather than going in with the pitch for funding because, even if you don't get money, you'll get plenty of free wisdom and useful connections. If the conversation between you and the potential donor keeps going, well, you never know where it might end up.
You're doing this, with or without them
Your project needs to go ahead whether you get donations or not. Or at least that's the impression you should always give. People admire determination, vision and also feel more secure if they know the project doesn't rest entirely on them (that's your job, social entrepreneur). So, talk about who else is on board already, talk about what more you could do if they joined in, too.
Keep writing short and sharp
Your emails should have no more than three or four lines, punching out exactly what you're doing, what you're asking for, what you're offering in return, and what to do next. Broader details should be in an attachment.
In the attachment (which should absolutely be no longer than one A4 page), use bullet points not prose. Focus on what both of you will get if the donation or partnership goes ahead. Talk about your experience – and your team's – to re-assure the donor.
Be empathetic
It's important to really understand what your potential donors objectives are. I knew that partnering with two established charities was really important to improve my credibility as a new organisation. I also knew that one of the charities (a large national organisation) was really keen to focus on employability as part of their internal and external marketing campaigns – so I have bent over backwards to ensure they can get access to us whenever they need it.
I have had countless camera crews, photographers and journalists visit the workshop as part of their marketing campaign. Obviously, we get a boost from this, too, but it's also a great win for that charity. And it means they're keen to continue the relationship.
Likewise, I make sure an equipment manufacturer who supplies us with tools is sent lots of photos as soon as the new tools arrive. Each time they do a press release, it generates five or six media items for them.
Think long-term
Your sponsors' time is precious. Donating a £500 piece of equipment might seem simple, but, with all the internal processes and accounting issues to get round, especially for larger organisations, it can be time-consuming for the donor for seemingly little return. But, if you can map out what a 12-month partnership looks like – with opportunities for media exposure, event attendance, days out for staff – and then have donations to match that schedule, it starts to make more sense.
Your network is bigger than you think
I would rate myself as a good but not excellent social networker – and have around 500 connections on LinkedIn. These 500 connections, between them, are reportedly connected to an additional 120,000 LinkedIn users. That number is surprisingly high, but just reflects how small the world is.
But don't forget about it in the real world, too. If someone asks you at a social event, "How's the project going?" reply with: "Great, but I'm still looking for a photographer." Ask a few times in a month, and you'll find yourself with a handful of willing volunteers.
Crowd fund
Crowd-funding is a great way to take advantage of your social enterprise story. People will instinctively want to share any crowd-funding project you have on their Twitter, Facebook or LinkedIn pages.
Successful crowd-funding relies on a strong marketing campaign, though, so, while this is a good head start, make sure you set aside plenty of time to engage with bloggers and journalists. Consider hiring an intern to help with this.
Keep yourself afloat
It's important to keep what little money you have in the business. Writing opportunities, speaking engagements and consultancy work are three good ways to earn a wage while the social enterprise grows.
Be prepared to pay everyone back
Once you're up and running, it's not fair to keep asking people for donations. So make sure your donors, especially those who provided services free, are first on the list when you want paid work done. And don't forget to forecast these costs into your business plan as you grow. (
http://www.theguardian.com/social-enterprise-network/2013/aug/21/starting-social-enterprise-on-shoe-string)
By Alastair Sloan. Alastair Sloan is the director of The Living Furniture Project, a social enterprise that employs and trains homeless Londoners to make bespoke furniture.
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