b'In general, businessminded people are focused on growth, profits, and valuation. Leaders of social enterprises, however, carry the additional burden of sustaining a business model that can demonstrate value in the market they serve while remaining true to their core values and mission.Social ownershipEnsure that the commu- Lessons learned nity and stakeholder interest is reflected inI n the last four years, Miracle Hill Ministries the control and ownership of the enterprise.has had some good experiences, but thereIncome ratiosWhat is the proportion ofis still room for growth. Four lessons we income that will be generated from donations,have learned: grants, contracts, goods and service provision,1.Determine the legal model that works best for and other trading activities?your ministry. While developing a new enter- Regulations and reportingSome legalprise in the same legal fashion as your thrift structures have tremendous regulation andstores or current ventures might be the path of may have limiting rules. Some may requireleast resistance, you should consider all risks a burdensome level of reporting that mightassociated with the new business. In our case, be a problem for smaller enterprises.we determined that developing a for-profit arm Other factors to consider: under the Miracle Hill umbrella was the rightHow much will each legal entity cost? course of action for BridgeWorks. This created some additional challenges with the corporationHow will the administrative functionsformation. As you determine the structure and be supported? owners, you will need to consider tangible waysIs there a requirement from funders that in which to measure the impact of the company it be set up a particular way? (Chris MMboth financially and ministerially. It is a priority Gordon, Social Enterprise Toolkit). for your business and investors to define how your enterprise will impact the community.Seek help, if you need it, from an accountantQuestions to consider: Is the company finan-and attorney when selecting a legal structure.cially viable? What social impact does it make? Praying about these details and discussing2.Seek opportunities within your own ministry. them with a professional can reduce the chanceKnowledge is key when deciding what to do of error. to socially impact the community while also \x02 JANUARY/FEBRUARY 2022 WWW.CITYGATENETWORK.ORG 25'