advantages of performing a financial validation
Validating assumptions about product demand and acceptance alows you to adjust startegies to better align with real market needs.
Market alignment
It is the monetary amount at which a company offers its products or services to customers.
Selling price
SDG 1
No Poverty
It refers to the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. It is about balancing economic, environmental, and social factors to ensure long-term health and well-being for people and the planet.
Identify and mitigate potential risks before investing significant resources, addressing problems in the cost structure or income estimates.
Risk reduction
This is all the expenses directly linked to the production of goods or services, encompassing costs of raw materials, direct labor, and any other cost directly related to the creation of products or services, as well as those derived from their distribution and commercialization.
Cost of sale
SDG 3
Good health and well-being
Being______means that individuals, organizations, and companies act in ways that benefit society as a whole. It involves making decisions and taking actions that go beyond financial gain, focusing on ethical behavior and contributing positively to the environment, communities, and broader society.
Key Aspects of Social Respo
By financially validating your venture, you increase the confidence of investors as it demonstrates that the entrepreneur understands the critical financial aspects of their business.
Attracting investors
These are the recurring costs a company faces in its daily operations to maintain its functions.
Monthly operating expense
SDG 6
Clean water and sanitation
It is a business that prioritizes solving social, environmental, or community problems while also generating revenue.
Social enterprise
Provides a solid basis for setting realistic financial goals, budgeting, and making informed decisions about the scalibility and expansion of the business.
Strategic planning
It refers to the amount of money needed to start the business model. It includes all the necessary expenses for the operation.
Initial investment
SDG 11
Sustainable cities and communities
Mention 3 parts of the Social Model Business Canvas
key resources, key activities, channels, value proposition...
Identifies areas for improvement, allowing you to adjust strategies, reduce unnecessary costs and improve operational efficiency before launch.
Resource optimization
It is the sales level at which total revenues equal total costs, i.e., where the company neither makes a profit nor a loss.
Break-even point
SDG 16
Peace, justice and strong institutions
The__________ focuses on delivering both social or environmental benefits alongside a practical solution or product for its customers. It highlights how the enterprise solves a societal problem while offering unique value to its customers, often with a focus on sustainability, ethics, or community impact.
value propistion of a social enterprise