Business Plan Structure – Social Impact Section

This section is about your social aim(s) – and if you are some form of social enterprise this is where you should explain why you are a social enterprise, co-operative, social firm, community business etc.

Of course most conventional businesses have social aims (sometimes unstated) and in recent years it has become more common for even the most for-profit enterprises to include their social aims in business documents such as business plans. Only include a section on Social Impact if you think it would add worth to your business plan (if you are not sure, try writing a draft of the section and then decide whether to keep or reject it).

In this section you should NOT restate large swathes of the business plan in more ‘inclusive’ language. You should instead explain the motivation that drives you and point out (referring to specific sub-sections of your business plan) what you are planning to do about it.

As a minimum you should explain the following:

• What is your main social aim?
• What trading do you do?
• How do you involve your stakeholders?
• What impact do you have on your stakeholders?
• Does your legal structure have a bearing on your social impact?
• What do you do with your profit or surplus?

Describe the difference you make to the lives of the people that you work with. If you have trouble thinking about this imagine what their lives would be like if you were not there.

Be careful that you don’t make this section too long, in particular beware of getting too carried away, after all you are writing a business document. Passion in business can be crucial and often is very good, but your readers will expect to see passion tempered with control.

You can add swathes of information about your social and/or environmental aims in the Appendices to your business plan and include references to these in the Social Impact section. You will do better with a tightly focused, evidence-based and powerfully argued section than with a long, gushing or vaguely-worded piece of prose.

Good luck in your business planning!