Enterprise UK and Rockstar Group webchat: Enterprise with a conscience

Hello and welcome to our Social Enterprise webchat ‘Enterprise with a conscience.’

Hosted by Enterprise UK and in partnership with Rockstar Group.

We are joined by Rockstar Group mentor Tom Minter, who is the CEO of Socks for Happy People.

Hello Tom!

Hello, it's a pleasure to be here. Looking forward to the chat, it's an important topic that will only become more important as we move forward.

Once you have an idea for social enterprise, how do you get started?

The first thing that you need to do is create traction, you need to turn people on by your idea. You need to create an awareness. The best way to do that is social media. You need to become that brand. Embody the passion, tweet about it, blog about it. Get it out there. That way, like-minded people will be attracted to you – that is your goal at this point.

Attract your core team, raise awareness. Think who the personalities in your team are. If your head is up in the clouds, you need someone with their head on the ground. If you are someone very detail focused and not extroverted, then it’s great to get a star to go out there and sell the idea. If being an extrovert is not natural to you, you need someone comfortable with this so you can project the face of the brand.

The next step is going out and proving your concept. If you require any substantial investment, that wont invest in a good idea, you need to get sales. The best market research is sales.

The thing to remember about market research only researches opinions. If someone wants to buy you your product there and then, you are on to a winner.

What can else can we do to encourage social enterprise in the UK?

Great question. That is something everyone can do – vote with your wallets. Entrepreneurs and business follow the market. The powerful message there is that it is in the power of the people. What can we do? Look into the background of companies, understand the product and make your decision on that.

I am not interested in what the gov is doing – it is nothing to do with me. My destiny is not in the hands of the government.

Where should a developing social enterprise look for finance to continue growth?

Create a personal brand online through social media and attract investors too. Now the rules have changed. You can fill out hundreds of forms, but stay in one place, put out your energy and allow those things to come to you. If you are really onto something, the right people will come to you. That is what is important.

Don’t wait for them to come – be active. You find your zone and your space, and you are it!The right people will then be attracted to you. They have made the people to come to come to you because they have made the decision to be involved in it.

Arent social enterprises just charities pretending to be businesses?

No, not at all because a social entrepreneur understands that their organisation is an extension of their own personal brand and values. As an individual, there are only so many people that they can influence. A true social entrepreneur asks himself how can I do a business and do good in the world. He or she understands that they can do both – and do it better by combining the two.

Teaching of enterprise in schools should be happening more, we need more things like the Make Your Mark challenge and One Big Idea. Do you think that we should be teaching social enterprise instead of general enterprise skills? How?

The above was not a question submitted byTom, but Sarah T! ooops!

The focus should be on developing your own authenticity. It will only be successful if it resonates at the core of the person. Social Enterprise will not work if their heart is not in it. You must tune into your own authenticity. This will allow our natural love for the environment to blossom. Accept and honour where that person is as an individual. When I was 19 I wanted a Ferrari. That is what I pursued. If someone had told me otherwise, I wouldn’t have done it well. I had to know what I wanted at a deeper level.

Does being a social entrepreneur open up opportunities not available to regular, garden-variety entrepreneurs?

Yes, but that does not make it better or worse. If someone wants to make a social business, they will attract the right business for them. We are not saying that everyone must go and start a social enterprise. Don’t ask what the world needs, ask yourself what you need – a world full of people like that is what the world needs. If social enterprise is not at your core now, that’s OK. Tune into yourself and go and do that.

Are socially responsible products more price impervious than other products?

Research shows that yes they are. In a recession, it is found that cheap products to do, as do products that are value related. Products in the middle suffer. The demand actually increase because people are not getting their satisfaction in other frivolous places. That is why now is such a fantastic time for social entrepreneurs – that is the way the market is going. Some research was done last year in the USA, it stated that 79% of consumers would happily switch brands if price and quality were equal, they would happily switch brands.

In last year’s Ethic Consumer report, it showed that 51% of people now shop primarily for ethical reasons.

Where di your idea come from, and why socks?!

I love socks, when I left my old business in 2007, I thought, what do I want to do next. You must do something that you can’t wait to get cracking on...so, I thought; why not go into the socks business! I was aware that very often that if my socks were on show, they would often would spark a conversation. People would ask me where I got them from. No-one wakes up and thinks about buying cool socks unless we create a really cool brand and put it where people’s eyeballs are!

When I did my market research, I found that premium socks are needed. There is not one definite sock brand – we wanted to be the Google of socks. No-one can name three great sock brands can they?

Social Enterprise is great. But do you need a "social enterprise" to invoke social change. Why can't companies just be a bit more responsible?

In the not to distant future, being a social enterprise will be the norm. If you are not one in ten years, you won’t have a business. The figures for people shopping ethically have more than doubled. For your business to do well in ten years, you will have to be a social enterprise. The term itself will become less important. It’s like online businesses now. If you’re not on the net, you’re not really a business. I think that right now though, the term is relevant.

With socks for happy people are fabrics are. We don’t position our self as an organic sock brand. Our packaging does say organic, but we don’t use that in our marketing.

How did you attract members to your team?

See the answer to Q 1. I embodied the heart of Socks for Happy People. Everywhere I want, I always had it in my mind to attract people to Socks for Happy People. I did it offline initially, and then started to use social media when it kicked off. I would always ask people what their dreams are, and ask them how SFHP could help them. If it could help them, then it could help us.

Skills are cheap, passions are priceless. You can find skills, but people that resonate with you are harder to find. People that are eager to work with you, who see the organisation as an opportunity for themselves, are the ones that you want to find.

What is the best funding strategy. Can you compare bootstrapping, VC or Angel funding and public funding as a basis for Socent startup?

The best funding for social enterprise is angel investing and attracting angels to you that want to be part of the brand.

The energy behind a team is so important. To create a genuine impact, that cannot be room for change between that. Key phrase for a social enterpriser is ‘alignment.’
Angel investors are people that believe in your vision. Bootstrapping is important in the early stages because you need to prove your concepts and that it is not just a good idea.

If you require means beyond your resources, I require an angel investor, but make sure they bring skills and good energy to the table.

Did u consider using Multi Level Marketing ?

Yes, we are going to be using multi-level marketing. We have a strategy for becoming a global pioneer on how to use multi-level marketing for an offline business that sells real products. The most important thing about that is not the added revenue but it is to create an army of raving fans that are talking about it. It’s not just about making a couple of quid per sock! To impact a world on the level we intend, volume is the key. The more people blogging and selling, the more we can really spread the message.

Any applications for raving fan distributors, please email tom@socksforhappypeople.com

can sad/depressed/ distressed people also enjoy your sock collection?

We get that question a lot – of course they can! Sad and depressed people can enjoy whatever they want. The thing to remember is that the socks won’t create the happiness! It comes from within!

The socks won’t make you happy but they will bring a smile to your face.

Did travelling help inspire you to come up with business ideas?

Every experience we have go in to our subconscious – they help shape who we are. Travelling inspired me and is part of who I am, but did make me think ‘I will start a sock business.’

That's all we have time for folks! Thanks Tom! Make sure you check out his website www.SocksforHappyPeople.com where you can win our entire launch collection which is worth £300.Follow us on twitter too www.twitter.com/socks4happyppl

Thanks, it's been a pleasure! I invite anyone to connect with me personally tom@socksforhappypeople.com or on facebook, tom@socksforhappypeople. And buy socks!