Being a social entrepreneur means possibly sacrificing profits for the common good. If you are willing to do that, here are some things to keep in mind.

☐ Decide on a legal structure. There are myriad legal structures for socially cognizant businesses, says Brett Smith, a professor at Miami University’s Center for Social Entrepreneurship. Will you be a for-profit, limited-liability corporation or a nonprofit 501(c)(3)? Or, will you fall somewhere in the middle? “This will largely dictate other things, like, ‘How do we raise necessary resources?’ ”Smith says.

☐ Be passionate. You’re likely going to be making less money than someone who is in it strictly for the money, says Phil Bessler, a professor and business clinic director at Baldwin-Wallace College. “You have to believe in the potential outcome from your heart.”

☐ Stay focused. You have to be absolutely crystal clear on what you are trying to achieve, Smith says. “There will be great temptation to try everything and have some mission drift. Everything has to be very consistent with the mission of the overall organization.”

☐ Create a funding plan. Map out short-term and long-term funding and don’t rely on government subsidies. “There are a lot of three-year grants available,” Bessler says, “but no grantor is going to give you that grant without understanding your long-term sustainability.” Joe Hensel of Polyflow adds, “Folks that want to do something socially responsible and then plan on government subsidies are going to lose.”

☐ Pick your board carefully. Have a powerful board. “That can help you achieve the long-term goals,” Bessler says.

- Best Practices Toolbox - Entrepreneurship

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