So, you’ve got

While there are many different social venture firms, each with its own philosophy and process, leaders have begun to emerge within the nascent space. One of them is City Light Capital. I sat down with Managing Partner Josh Cohen to learn what they look for in a good idea, and how they operate.

GOOD: Briefly describe City Light Capital’s mission.

Josh Cohen: We’re trying to make the world safer, more knowledgeable, and more sustainable. That’s what our three sectors of focus are designed to do. We’re looking for the top entrepreneurs building U.S.-based high-growth companies dedicated to tackling some of society’s toughest challenges.

GOOD: What differentiates City Light from traditional venture capital firms?

J.C.: We provide the same due diligence that exists within traditional venture funds. We provide the same focus on financials, the same focus on shareholder value, the same discipline in terms of investing. In fact, we’re often co-investing with non-social VCs. However, there are a few things we do that are different.

The inclusion of social impact as criteria for investment is certainly unique. One of the things that we believe in as a fund is the notion of an “impact premium.” Not only is there no tradeoff between making money and having measurable social impact, but we feel our companies will be worth more over time because of the data and the impact quotient.

GOOD: What sorts of companies do you look for to invest in? What are your typical terms?

J.C.: All of our companies have about a million dollars of revenue, but they’re less than $25 million in pre-money valuation. They’re all U.S. companies and they all fall within one of our three sectors of interest. We invest between one and two million dollars per round, hoping to invest between four and six million over the life of the company. Like traditional venture funds, our model is to look for ten times our money on every deal. On average, we own between five and 25 percent of the company.

GOOD: Talk about “skin in the game.” How important is it that entrepreneurs invest in their idea?

J.C.: It’s essential. The number is less important; the fact that it’s meaningful to the entrepreneur is important. If you can’t demonstrate you are completely committed and in love with your concept and the market and the opportunity, then it’s very difficult to convince other people to feel that way.

GOOD: I often hear about the danger of overshopping an idea.

J.C.: I’m not sure I’m a big overshop guy. I do, however, think there is value in finding a perfect partner. I would recommend that entrepreneurs do their homework on the venture community and pick their dream dates by looking at previous investments we’ve made, the language that we’re using on our website, the places that we show up. You need to understand what kind of business you have and what kind of partners to surround yourself with.

Additionally, nobody wants to be the last in line. If I’m the last guy seeing a deal, I know it. VCs typically co-invest with other VCs, so it’s not uncommon to talk about deals. You also know based on where an entrepreneur is in the process. If a company’s been raising money for nine months and you’re just meeting them today, chances are you weren’t one of their first picks

GOOD: Are there any things you’d tell the budding social entrepreneur to avoid?

J.C.: There are a lot of things that we see that are typical warning signs for us. People who believe they’re going to change the world overnight without relevant experience or without a growth strategy typically never do. People without a business model or business assumptions that drive their growth typically don’t get to see the next card. It’s really about the plan, the assumptions, and the approach almost as much as it is about the endgame.

The Takeaway: If you’re looking to implement major growth, social VCs are a fantastic opportunity for an infusion of capital. Evaluate your requirements, do your research, and determine if social venture capital is right for your business.

Here’s a riddle: What do a techie, a Grammy-nominated recording artist, an innovative Danish edcuator, and a 24-year-old athletic director from New Orleans have in common? Honestly, probably nothing. But a few weeks ago, they all gathered to speak at the Feast conference here in New York, and they were all inspiring as hell.

A while back, I wrote about the importance of conferences for networking. Beyond that, however, the truth is that a lot of them are lame. You show up and listen to some people talk, you swap a million business cards, you yak about yourself in 30 second soundbites, and, hopefully, you meet a few interesting people. But every now and again, the right conference can give you the kick you need to remember why you love what you do.

If starting a business were easy, everyone would do it. The fact that it’s hard makes it feel like it’s worthwhile. But, as every entrepreneur knows, the fact that it’s hard also makes it feel like it’s, well, just really damn hard. That’s sort of where I was at when the Feast rolled around—going back and forth with lawyers, trying to arrange an endless list of meetings. It was all important, but when there’s a lot of preparing and not a whole lot of doing, it’s hard to feel like you’re making progress. You need something to keep you energized.

At the Feast, one of the most interesting bits of knowledge came from Kenna (whose first album, New Sacred Cow, you should own, and who Malcolm Gladwell writes about at some length in Blink). While opening for No Doubt, Kenna refused to have his name listed on any of the tickets or promotional material for the concerts. This flies in the face of traditional marketing, which is all about getting your name out there. But think about it: Most people show up late to concerts, skipping the opening act. By not listing his name on the bill, everyone showed up on time, not wanting to miss No Doubt’s set. Instead of playing for five or six hundred people, he was playing for 10,000 or 15,000. The lesson? Challenge traditional ideas.

As young, creative people who spend much of our time online, it’s easy to get caught up in believing that the newest technology holds all the answers. Ken Banks, founder of FrontlineSMS, took a moment to remind us that’s not always the case. If you’re really looking to change the world, argued Banks, forget the internet—because most of the people who most need your help don’t have web access. While he certainly wasn’t dismissing the web altogether, his point is well taken. The flashiest solution isn’t always the best solution.

Brian Bordainick is one of the most extraordinary 24-year-olds you’re likely to meet. As the Athletic Director of George Washington Carver High School in New Orleans, he’s launched the 9th Ward Field of Dreams to help fund a 1,000 seat, $1.85 million football field and track in an area that was all but ravaged by Hurricane Katrina. It sounds like a pipe dream but after landing high-profile sponsors like Nike and the NFL, he’s more than 60 percent toward his goal. He got there by refusing to take no for an answer. Persistence is a trait that often separates those who succeed from those who don’t. You need to keep pushing, to hustle, to find alternate solutions—you need to make it work.

Finally, Uffe Elbæk, founder of The KaosPilots International School of New Business Design & Social Innovation, taught us perhaps the most important lesson in social entrepreneurship: It’s not about you. Elbæk made the school’s mission clear with a nuanced distinction, stating,  “We don’t want to be the best school in the world; we want to be the best school for the world.” It’s not about becoming famous. It’s about making a difference.

And that, I suppose, is what we’re all trying to do. It’s always refreshing to sit in a room full of people who are in the middle of doing extraordinary things, if only to be reminded that anyone can create world-shaking change.

You can watch all of the talks here.

The Takeaway: We’re smack in the middle of a ton of innovation. People with good ideas are actually making a true, measurable difference. So get energized, put your head down, and get back to work. I know I am.

Last time around, we talked about the importance of design and branding. In that article, I put out the call for suggestions. I wanted to know who you thought was doing a fantastic job with innovative design and branding, and I got a lot of great responses.

A number of readers were impressed by the efforts of charity: water. I couldn’t agree more. Scott Harrison’s messaging has been incredibly effective—and incredibly beautiful. From his organization’s minimalist logo and intuitive website to their compelling public displays and the breathtaking photography that surrounds the project, it’s hard to find an organization who has integrated branding and design more effectively. Take a look at this video to see the whole story (and read this piece he wrote for GOOD here).

As expected, the Girl Effect video was a huge hit. It turns out that a number of other organizations have also put out compelling text-based animation efforts. For instance, be sure to check out this fantastic new video for Sustainable Health Enterprises’ “she28″ campaign. Additionally, the virtual phone system, Grasshopper, uses a similar technique to attempt to appeal to entrepreneurs. Seems like we might have the makings of a young visual trend.

The key word there, I think, is “young.” Up until now, the stellar design and branding efforts we’ve discussed have come from what can only be called younger, smaller, hipper organizations. Sure, you know what 826 is, but I doubt your mom has ever purchased a gallon of gravity to help the cause. (Note: If she has, you should know your mom is really, really cool.) But what if you’re dealing with a larger, established organization? What sort of role can branding and design play? The answer, unsurprisingly: A huge one.

Case in point: Feeding America. If the organization doesn’t ring a bell, it’s probably because it used to go by another name: America’s Second Harvest. Despite the organization’s 30-year legacy, they rebranded in 2008, claiming on their website that they needed a new name that “directly conveys that [they] are providing access to food for people who need it.” A complete brand overhaul designed to clarify their mission? Sounds pretty logical to me. Plus, take a look at the different logos at left: Which one is more appealing to you?

Feeding America made the change in order to more clearly speak to their target donors. That’s the key here. They saw what they were lacking and they reworked their brand to better connect with their audience. Want to know what your target audience wants? Don’t have the money for a fancy focus group? Don’t sweat it; just ask them. Talk to the people you’re trying to help. Chances are, they’ll know what they need more than you do.

You’d be surprised how open people will be if you give them a chance. They’ll tell you their troubles, their fears, their dreams. For inspiration, check out Fifty People One Question, a social experiment and online film series surrounding the connections between people and place. By simply posing the right questions, the joint project from Crush + Lovely and Deltree somehow manages to distill people down to pure, stripped-down, unbridled honesty. The results are astounding. Watch the videos, then go ask your own questions.

The Takeaway: As we’ve discussed, design and branding matter—but so does research. Sophisticated videos and flashy web pages can be fantastic but they’ve got to be right for your organization. That means knowing your audience. Talk to the people who are going to use your product or service. If you’re trying to help a particular group of people, go find out what sort of help they truly desire. Question all your assumptions, learn all you can about your audience, then come back and design something simultaneously stunning and strategic.

The face of the philanthropist is changing. The people making a difference aren’t just the stereotypical elderly benefactors. They’re creative people, business people, Apple people, Obama people, working-class people—change is coming from all over.

And as the identity of the humanitarian changes, so, too, must the identity of the cause. But how? As technology continues to make communicating with the masses and soliciting donations exponentially easier, how will organizations stand out among the crowd? How can they capture the interest of these young, hungry change agents?

Many nonprofits are taking a bit of a cue from for-profit industries, focusing on design and branding to help promote their causes. Because frankly, it’s not just about the message; it’s about the marketing. So what does that mean for social entrepreneurs? It means paying attention to details that many nonprofits seem to find extraneous, like design and branding. It also means you should hire a professional designer. Your website, your marketing efforts, your brochures, even your business cards can play an integral role in how you’re viewed by donors, by backers, and by the public at large. Sound ridiculous? Maybe it is. But it’s also true.

Love it or hate it, you are selling a product: your cause. And while helping change the world is certainly more valuable (and, hopefully, more gratifying) than buying a toaster, you’re fighting for the consumers’ attention nonetheless, and you’re battling for their trust.

This trust is especially important with nonprofits because, unlike with consumer goods, the “buyer” here isn’t really getting anything other than a warm fuzzy feeling (and a tax break) in return. For this reason, everything from the literature to the letterhead of your organization needs to play a role in conveying that your cause is professional and worthwhile, and maybe even cool.

More and more, this idea of being worthwhile seems to be tied to having a novel approach. People are fed up with established ways of how things are done (remember the Generation M Manifesto?). It seems to me that as our notion of philanthropy evolves, so should our ideas about promotion.

During the last Jerry Lewis telethon, comedian Jeffrey Ross joked on his Twitter page that a 7-year-old kid got out of his wheelchair and walked for the first time just to turn off the television. He was kidding, but he was onto something. Some of the old methods of brand-building and fundraising are starting to seem a little, well, old.

It’s a concept that hasn’t gone unnoticed by some in the nonprofit realm. We’re seeing, to some degree at least, a change in approach. The sob stories and “for just pennies a day” language are being replaced by modern logos, slick web interfaces, and innovative approaches to storytelling.

My favorite example, by far, is a promotional video for The Girl Effect, an organization dedicated to helping empower young females in the developing world. When I first saw this video a year ago, I showed it to everyone I knew. Not only does the video do away with the traditional “needy case” photography, it removes people and photography altogether. Typography, music, and fantastic editing combine to produce a piece that is informative, engaging, and—most important—compelling as hell. As I sat down to write this article, I watched it again. Just as it did the first time, it gave me chills. Watch it here.

The Takeaway: Design and branding matter. Regardless of its mission, your organization is also a brand, and while style might not be more important than substance, it certainly cannot be ignored.

So here’s my question: What captures your attention? Have you been intrigued by any innovative methods of fundraising or are pledge drives and bike-a-thons still the gold standard of good? Who’s doing a great job of getting the word out?

There’s an old expression: “Good writers borrow from other writers. Great ones steal outright.” It’s the same with business. It’s always helpful to pick up tips and tricks from people who have done it before. You can learn from their mistakes and glean powerful insight from their successes. And thanks to the internet, it’s never been easier to get inside the minds of talented people.

Nearly all the entrepreneurs I know start their days with some sort of reading. No matter their particular field, the common thread seems to be a voracious appetite for knowledge, which usually translates directly to a lengthy Google Reader list. As a result, I thought it would be helpful to compile a list of recommended online resources. Some of these should be familiar, some may not. To get true perspective, you need a diverse pool of information. Hopefully, the list below will provide a decent starting point.

The Big Thinkers: You’ll want a few of these. Big-picture folks who tackle all sorts of questions, ranging from entrepreneurship to management to innovation. The gold standard here is probably Guy Kawasaki. Why? Because he’s really, really good. While he comes from a tech background, his lessons are almost always translatable. He makes great points, makes them clear, and he makes them fast. What more could you want?

Regardless of your kind of business, you’ll need to get people interested—customers, donors, whoever. That requires some marketing savvy. On that front, it probably doesn’t get much better than Seth Godin. The prolific author—and founder of Squidoo—posts nearly every day on topics such as getting the word out, capturing consumer attention, and leading an organization.

As Chairman of HDNet and owner of the Dallas Mavericks and Magnolia Pictures (among other things), I have no idea where Mark Cuban finds time to write, but I’m glad he does. You might remember GOOD’s coverage of the Mark Cuban Stimulus Package from earlier this year. No matter your views on the outspoken billionaire, Cuban is undeniably brilliant. From his advice to entrepreneurs—I particularly liked this recent post—to his interesting evaluations of the media and technology industries, Cuban’s pull-no-punches perspective is not only a fun read, it’s also a must-read. (Plus, if you manage to get yourself on The Simpsons, you’re clearly doing something right.)

The Do-Gooders: There are a number of other sites that will help you stay in touch with the philanthropic world. One of them comes from Fast Company, mandatory reading for anyone looking to start a new organization. Their Ethonomics blogs are an interesting blend of design, technology, and social responsibility. On the more specific side of things, Social Edge’s Capital Ideas series provides great information surrounding financial issues that affect social start-ups. I also recommend Acumen Fund’s blog, which always proves thought-provoking.

The Venture Capitalists: Whether or not you’re interested in raising capital through VCs, venture capitalists lend a unique take on what it takes to build a successful start-up. Think about it: Who knows what makes organizations attractive better than the people who invest in them for a living? Tops on my list is Fred Wilson’s blog. The Union Square Ventures and Flatiron Partners principal does a fantastic job of discussing financing, technology, marketing and a host of other subjects—all with a surprising level of transparency (check out this post about their recent deal with Foursquare). Also be sure to check out Spark Capital partner Bijan Sabet’s blog and Y Combinator’s always fascinating Paul Graham.

With all this reading material, I’d be remiss if I didn’t add one important thing. Avoid what I like to call The Curse of the Big Idea. Throughout your travels, you’re bound to find a bunch of imaginative concepts. Don’t try to apply every one of them. I once worked with a guy who fell victim to this: He was easily excited by innovative ideas, and wanted to implement them all. “That’s how we should monitor project time!” “That’s how we should brainstorm!” “We should have a monthly meeting about that!” It can be a time suck, and a barrier to success.

The Takeway: Read. As much as you can, from varying sources. The web makes it easy to gain insight from all sorts of inspiring individuals. And, just to prove that business can be fun, check out Inc. magazine’s The Browser, which extracts management lessons from episodes of Mad Men. Then, get ready for your next meeting, Mr. Draper.

As we’ve discussed, social entrepreneurship is rife with challenges. Even if you’ve managed to avoid most of the early mistakes, you’re bound to hit some hurdles. As with any business, many of them will revolve around money. You’ll often need things (lawyers, accountants, designers, consultants), all of which will cost you. So, how can you obtain the services you need while still managing your (presumably) small budget? At this point, it’s time to introduce you to two of the nicest words in the English language: pro bono. Okay, so it’s actually Latin. But you know what I mean.

You’ll often hear from entrepreneurs that starting a business is a difficult and expensive process. And while I can’t tell you that either of these things is untrue, if you know where to look, you’ll find a bunch of people willing to offer their help—for free.

One of the most useful of these organizations is SCORE. With nearly 400 chapters nationwide, SCORE offers free and confidential advice to small businesses. One of SCORE’s major strengths is that they don’t believe in cookie-cutter solutions; your interactions will be tailored to your organization’s goals and challenges. You’ll be able to find a counselor whose experience matches up with your interests, and take advantage of their expertise through face-to-face and online counseling.

Fellowships are also a wonderful door-opener to pro bono assistance and network-building. Echoing Green, Ashoka, Acumen Fund, and StartingBloc all have respected fellowship programs. And while each fellowship is different, they often provide partial funding, advice, technical assistance, and opportunities for further support from other organizations.

One of those organizations is the Lex Mundi Pro Bono Foundation, which helps match social entrepreneurs with needed legal help. While Lex Mundi only accepts pro bono clients who have been vetted through a partner organization, their list of these collaborators is fairly extensive. I cannot stress how beneficial free legal help is. Need help incorporating or applying for 501(c)3 status? You’ll need a lawyer. Have intellectual property you want to protect? You’ll need a lawyer. Want to start drawing up contracts for potential employees or investors? You get the idea.

Pro bono support is also available in more creative areas. For instance, IDEO, a global design consultancy (and GOOD collaborator), occasionally hosts social impact labs. Socially focused organizations are invited to attend one-hour sessions with the firm’s designers to help solve their business problems. According to Elizabeth Johansen in IDEO’s Boston office, “the hour can be spent looking at anything from really meaty technical challenges like designing an irrigation system to something more intangible like helping to create a movement around leadership development.” This brainstorming can take any number of forms. Johansen explains, “We’ve dedicated the time to things like design reviews, where someone has a design, but they want experts to pick it apart and ask questions.”

One important note: There is occasionally some truth to the notion of “you get what you pay for.” However, I’d make the case that this applies with less-respected organizations than those mentioned above. If your cousin knows a guy who knows a guy who can totally hook you up with an awesome accountant for free, you might want to think twice. If, however, some of the world’s leading authorities in their respective fields are volunteering their skills, just say thank you.

The Takeaway: People want to help you. For free. With a little effort, you might find a way to expand your business while avoiding emptying your wallet by taking advantage of pro bono support—a wonderful term in any language.

Starting a business never ceases to be exciting. There’s always a new challenge, a new opportunity. Will you land that big meeting? Have to face some unforeseen crisis? It’s almost impossible to predict what any day will bring. However, there’s one thing on which you can always count: mistakes. At some point, you’re going to screw up.

The good news? Once you start getting out there, building your team, and meeting people, you’ll quickly realize that a lot of very common early mistakes are easy to avoid. So, in the hopes of saving you some time (and a headache or two), here’s a quick list. Steering clear of these early-stage “don’ts” will positively impact your initial strategy, your business plan, and even how you talk about your company. Basically, it’ll make your life a whole lot easier.

Don’t overestimate your market potential. Avoid uttering any sentence that begins with, “If we can just get X percent of the market…” This comes up surprisingly often. Chances are, you’re not getting 5 percent of the market. In fact, you’re probably not getting 1 percent of the market. An example: You’re young, hip, and tech-savvy. There’s a good chance that you’re a Mac person. Your friends are probably Mac people. Heck, most of the people you know might be Mac people. As of last month, Apple still has less than 4 percent of the global PC market.

Don’t be foolish about potential projections. Similar to the above, you need to be realistic about how much money—and how much good—your organization will generate. If yours is the sort of business where you’ll need to raise money, potential investors will want to see projections. Your numbers will be viewed skeptically. You’ll need to justify every one of your assumptions. So, keep your projections reasonable. However…

Don’t be humble, either. This was one of my early mistakes. I was well aware that I was going to be subjected to this sort of skepticism. As a result, my initial projections were extremely conservative. Bad idea. In my first few meetings, I got the same reaction: People loved the concept, but were surprised at how little money we were going to generate. Despite the fact that our idea had potential, I’d attempted to temper expectations. Turns out, I’d tried so hard to avoid looking unrealistic that I ended up looking unimpressive. There was a middle ground I was missing. Don’t go overboard, but don’t sell yourself short.

In fact, this is the reason many people advocate integrating a situational analysis into your projections. Take three scenarios—not great, good, awesome—and show how they affect your profits and the amount of good your company can do. Make it as easy as possible to understand. “If we get this many customers, here’s what happens.” It takes a bit more research and a bit more time, but it’ll show that you’re planning ahead for contingencies—something any potential investor will appreciate.

Don’t brush off your competition. Here’s another sentence that you’ll hear in pitches: “Our idea is so novel that we have no competition.” I’m going to be as clear as I possibly can on this: Yes, you do. Any organization—for profit or for good—has competition. You will always be battling with someone for customers, donors, sales, etc. You’ll need to know who they are and be able to make a strong case for how you’re going to best them.

In addition, the simple truth is that there’s a good chance someone has already come up with your idea. That’s not always bad thing. You might have heard people talk about the “first mover advantage.” Well, in many cases, it doesn’t exist. It’s not always about doing it first; it’s about doing it right. Early on, we found an organization that initially seemed to have a similar idea. I was crushed. However, the more research I did, the more I realized that their idea wasn’t as similar as we’d thought, and that they were, in my opinion, going about it completely wrong. In the end, it renewed my energy for the concept. I became focused on ensuring that we didn’t fall victim to the same errors in judgment I saw the other company making. The lesson? Keep an eye on your competition. Respect them, even if you think they’re doing a lousy job. Try to predict their behavior. Learn from and capitalize on their mistakes.

The Takeaway: Mistakes are inevitable, but avoiding some of the errors that often tie down early-stage ideas is easy. By putting in a bit of extra time for research, analysis, and calculations up front, you’ll be able to save yourself a world of time and trouble in the end.

If you’ve been reading this column over the last few weeks, you’ve learned what makes a strong business plan and how to take one for a test drive. This time around, we’re going to talk a bit about something more concrete—an element that is absolutely vital to getting your business off the ground: People.

Once you’ve got your idea, you have to find the right folks to make it happen. Putting a team together might be the hardest part of starting a business. You’ll need to find the perfect blend of skill sets and dispositions; people with complementary (but not redundant) expertise; people who can argue passionately without reaching for the nearest sharp object.

There’s an old Aaron Sorkin line I go back to any time I need to put a team together: “If you’re dumb, surround yourself with smart people. If you’re smart, surround yourself with smart people who disagree with you.” Which is to say, the team you assemble shouldn’t simply execute your vision; they should build and improve upon it.

To get started, you should assess your own limitations. Not great at something? Either learn quickly, hire someone who is, or outsource. Understand the difference between hobby and expertise. If someone has done some freelance design work, they can probably be trusted to dummy up a few business cards on the cheap, but you should still use a pro to design a website. Likewise, a few accounting courses might help with initial bookkeeping, but it’s not the same as a good CFO.

In this Entrepreneur article, Stever Robbins gives a fantastic outline of what to look for when crafting an executive team. If your idea deals at all with the web, I highly recommend Micah Elliott’s take. And while salary and stock certainly play a role in acquiring top talent, remember that you have one key advantage—you’re doing good. If your idea is inspiring, you’re going to find people who want to help. Don’t get me wrong: Talent always comes at a cost. But that cost might be significantly less than expected if you can get someone to believe in your mission.

So where do you find these amazing, like-minded, change-driven individuals? I, for one, hate networking, but I draw a distinction between networking and meeting people. Meeting people, I love. Find a room of fun, interesting people and you could end up with a friend, a business partner, even a date. Over the last handful of years, I’ve been fortunate enough to meet a wonderful group of brilliant people. And despite the fact that these people were friends long before they were “contacts,” they’ve come to provide invaluable insight on issues ranging from finance to technology to the mindset of the philanthropist.

Conferences are great places to meet people. One of my favorites is The Feast, hosted by New York-based innovators alldaybuffet. “We wanted to create something that was more than just the social entrepreneurship community talking to itself,” offers co-founder Jerri Chou. “We’ve gathered a diverse, interdisciplinary community of creatives, philanthropists, entrepreneurs, venture capitalists, and business leaders in order to create a new dialogue surrounding how to do good better.”

For this year’s conference, they’ve also devised an inventive microsponsorship system, offering applications for a limited number of $99 tickets, subsidized by attendees who have chosen to contribute additional funds. “As social entrepreneurs ourselves, we know how hard it is to afford a conference,” says Chou. “The people on the ground launching companies don’t always have hundreds of dollars to spend toward making the meaningful connections they need. Besides, we need the doers most of all. For us, this is a movement; we’re trying to make it as inclusive and empowering as possible.”

If you’re on the West coast, Opportunity Green is an amazing chance to learn about how leading brands like Whole Foods, Patagonia, and Toyota are eschewing business as usual in order to serve as catalysts for positive change. Also be sure to check out SoCap09 for two days of interesting discussion from a social capital perspective, plus a novel third day, the topics for which will be determined by attendees.

Of course, if you’re looking for something a little more low-key (and a little more low-cost), you could always Jelly. Jellies are casual coworking sessions available in more than 20 cities. You just show up with a laptop, sit down in a room with a bunch of strangers, and get down to business. Granted, Jellies aren’t social venture-specific, but who knows? You just might meet that programmer/designer/writer/collaborator you’ve been missing.

The takeaway: Get out there. Meet people, make friends, and see what happens. Putting together a successful team might be the most difficult part of launching a venture, but it’s just about the most important. Examine any successful organization and you’ll quickly realize that the kind of company you create has a whole lot to do with the kind of company you keep.

A few months ago, I found myself standing in front of a room full of people. Potential investors, heads of philanthropic organizations, and leaders from all areas of the social space were there to hear me speak. I wasn’t in a boardroom, mind you; I was in a business plan competition.

From a field of more than 50 teams, only four remained, and I was terrified. Nonetheless, I stepped up, introduced myself to the judges, and began my pitch. Now, I don’t pat myself on the back very often, but I was on. I wheeled through my presentation, answered questions—I just crushed. Then, four hours later, I found out I’d lost.

Naturally, I wasn’t happy about it, but in business, you’ve got to be able to take a punch. You’re going to hear no a lot more than you’re going to hear yes, and this was one of my noes. Still, I’d do it again in a heartbeat. If you ask me, you should, too.

Business plan competitions are an invaluable resource for the aspiring social entrepreneur for a number of reasons. They’re a lot of work, but if you read our last column, you know that already. To win a competition, you’ll likely need to create a fairly impressive business plan. It isn’t easy, but hey—you’re trying to change the world here.

By entering a competition, here are some of the things you’ll get:

Your first hard deadline: While it’s easy to be motivated about your concept, it is often difficult to know exactly what you need in order to get your idea out there. A business plan competition will force you to set a schedule, complete a list of deliverables, and stay on track.

Access to top talent: Loretta Poole, Associate Director of the Berkley Center for Entrepreneurship and Innovation at New York University, puts it this way: “Competitions are amazing opportunities to receive guidance from successful entrepreneurs, investors, and industry experts, who act as coaches, mentors, and judges throughout the process.” Simply put, you’ll meet a bunch of amazing people to whom you might not otherwise have had access—people with loads of relevant experience, invaluable insight, and who just want to help out with your idea.

The chance to fail fast: They’re a gauntlet—an intense series of challenges held over a fairly short period of time. It’s a wonderful litmus test for evaluating whether your idea holds water and, if so, how you need to refine it. You might not always hear good news but, honestly, if your idea isn’t up to snuff, wouldn’t you rather find out now, before wasting a few years and draining a few bank accounts? If you’re going to fail, fail fast.

The best part? It’s a chance to do all of this before you’re sitting in the Big Important Meeting. Sure, there’s money on the line in competitions—they’re actually a great way for a start-up to grab a few quick bucks—but it’s basically a dress rehearsal. The judges are going to pepper you with questions, poke holes in your concepts, and test whether you have the knowledge and the mettle to run a business. Why? Because that’s exactly what any potential investor or partner would do.

So no, I didn’t win my competition, but I got a ton out of it: My business plan is far more solid than when I began, people who saw my presentation emailed me about becoming advisors, and I received an invitation to participate in a small business incubator. So although each competition can only have one winner, you’ll find that winning has very little to do with who walks away with one of those silly, oversized commemorative checks.

The takeaway: Business plan competitions are a fantastic way to gain exposure and feedback in the early stages of an idea. If you’re looking for a place to start, many universities hold social venture competitions, open to both students and alumni, which can net the winners upwards of 100K in prizes.

The Global Social Venture Competition, organized by a number of universities, is the largest and oldest student-led competition. Competitions are also held by Tufts, NYU, and Stanford, among others. Additionally, Harvard has recently launched an innovative competition based entirely on pitches.

Moreover, many corporations are jumping into the social-venture competition space, including Dell and Wal-Mart.

Not a student? Never fear. Organizations like Investors’ Circle and Clean Tech Open hold competitions that are open to anyone, and Ashoka’s Changemakers has a number of competitions open to the public as well.

New competitions are springing up all the time. Post any you might find interesting in the comments section.

Have you ever entered one? What’s been your experience?

Our business columnist is back to explain why you totally need a business plan (even though they’re a pain in the ass to make). He’ll be here every two weeks to share his successes, failures, and to answer your questions.

There are a lot of conflicting opinions about the utility of business plans. If you ask me, though, I’ll tell you that business plans are incredibly important—you just need to learn how to use them.

Constructing a successful plan is all about recognizing limitations—understanding what a business plan will and will not do for you. First thing’s first. Repeat after me: “My business plan will have very little to do with my actual business.”

Congratulations. You’re over the first hump. I’ve yet to meet any business owner whose original plan plays any role in what they do now, because no matter how solid your idea is, it’s going to change along the way. Also, your plan is going to contain all sorts of projections (revenue, production, costs, etc.), and “projections” is really just a fancy word for “completely blind, shot-in-the-dark guesses.” Your guesses will be based on analysis. But at the end of the day, they’re still just guesses.

So, then, why bother taking the time to pump out those 20 or 30 pages? Because there’s a lot that a business plan will do for you. For instance:

Information gathering: To craft your plan, you’ll need to become an expert. You’re going to learn more than you thought was possible about your industry. You’ll evaluate your competition, talk to prospective customers, and calculate whether you can make it work financially. It’s this research that will ultimately tell you if your idea has the juice to become a business.

Funding: Unless your uncle runs a VC, you’re going to have to raise money. And pretty much anyone who’s going to consider writing you a check is going to want to see that you’ve done your homework (that is, your business plan). Does Nicholas Negroponte need a business plan for his next project? Probably not. Do you? Yes.

Perfecting your pitch: This is perhaps the most valuable thing that writing a business plan will do for you. All that research is going to make you a pitching demon. You’ll rattle off statistics. You’ll exude confidence in your ideas. You’ll anticipate questions before they’re asked. You will be ready for every meeting.

But what goes into the plan? Truth is, there’s really no set rule. You’ll get a different answer from everyone. Personally, I like Guy Kawasaki’s take. For him, a good plan includes: an Executive Summary; the problem you’re going to solve; how you’re going to solve it; your business model; how your business works; marketing and sales plans; your competition; your team; projections; status and timeline; and a conclusion.

That’s a pretty good list. Of course, this isn’t just any venture you’re starting—it’s a social venture, which means we’re missing something. That’s right: The whole “helping people” thing.

You’re going to need to figure out your Social Return on Investment. Saying you’re going to change the world isn’t enough; you’ll need numbers. How many acres of woodland can you save? How many sanitation centers can you erect? By how much can you improve literacy rates? You get the idea. It’s worth noting, though, that SROI is complicated and contentious. (There is an interesting and ongoing debate surrounding its practical application here.) Nonetheless, the fact remains: You can’t just claim that you’re going to do good; you’ll need to prove it.

If you’re a first-time social entrepreneur, developing a business plan is a great way to see if your idea has the potential to be something more. The hard work, the research, the feedback you’ll receive—it all pays off. The process will test your assumptions, expand your knowledge, and help get you to a point where you can convince others to believe in your dream. So while writing your plan almost certainly won’t teach you how to run a business, it might well get you to a place where you have a business to run.

The Takeaway:
Kickstart your company by writing a business plan—but always keep in mind its true purpose. To help get started, download a sample business plan from the nonprofit technology network, NPower.

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