- August 1, 2024
- Posted by: ioannis
- Categories:
Introduction
An NGO dedicated to providing capital to support impoverished women in developing countries engaged Critical Future to develop a comprehensive Market and Funding Strategy. The primary goal was to identify suitable foundations for funding and to assess indirect competitors in the non-profit sector, particularly those involved in retail product-level investment notes.
Challenge
The NGO faced the dual challenge of securing funding from relevant foundations and navigating a competitive landscape that includes indirect competitors in the non-profit sector. Key challenges included:
- Mapping key players in the microfinance value chain and understanding the associated challenges.
- Exploring diverse business models beyond reliance on donations for self-sustainability.
- Identifying potential donors and foundations for grants.
- Developing scaling strategies that include short-term actions and long-term financial models.
- Analyzing indirect competitors, particularly those involved in retail product-level investment notes, to understand their capital models and market positioning.
Solution
Critical Future delivered a multi-pronged approach to address the NGO’s needs and develop an effective Market and Funding Strategy.
Step 1: Mapping Key Players
The team conducted a thorough mapping of key players in the value chain of microfinance loans for women in developing countries. This involved identifying the various organizations involved, understanding their roles, and analyzing the challenges they face in providing capital.
Step 2: Exploring Business Models
A detailed examination of different business models was performed, including interest-based models, management fees, and social impact investments. This analysis aimed to identify sustainable approaches beyond traditional donation-based funding.
Step 3: Identifying Donors & Foundations
A comprehensive list of potential foundations and donors that could provide grants was compiled. This included evaluating their alignment with the NGO’s mission and funding priorities.
Step 4: Developing Scaling Strategies
Short-term strategies were developed to enhance content creation, establish partnerships, expand networking efforts, and quantify impact. Long-term strategies focused on introducing management fees for investments to support scalability and financial sustainability.
Step 5: Mapping Indirect Competitors
An in-depth analysis of indirect competitors was conducted, focusing on organizations involved in retail product-level investment notes. This included mapping their capital models, identifying success factors, and understanding the challenges they face.
Results
Critical Future’s strategy equipped the client with actionable insights for securing funding and navigating competition. Our recommendations included identifying key players and challenges in the microfinance sector, exploring diverse and sustainable business models, and targeting suitable foundations for grants. The scaling strategies outlined both short-term actions and long-term financial models to ensure growth and sustainability. Additionally, our analysis of indirect competitors provided crucial insights into their capital models, enhancing the client’s strategic positioning. This comprehensive approach set the stage for effective funding acquisition and impactful expansion.