General

Developing your business and impact models Te whakawhanake i ō tauira pakihi me ō tauira pānga

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Once you know what impact you want to have on the world, you need to work out how to achieve it. Decide how you’ll make money in the long term, so you can help solve the problem you’ve identified.

Getting started on your business and impact models

To build your business’ impact, you need to merge these two models:

  • your business model: creating value that customers want to pay for
  • your impact model: fulfilling your social or environmental purpose.

These two models work together. Not everything you do to make money will fulfil your purpose. Not everything you do to fulfil your purpose will make money. 

Check both your business model and your impact model by:

  • talking to potential customers and using their feedback to make changes if needed
  • testing your products and services on potential customers
  • working with those you want to create an impact for, as well as any charities or organisations you’ll partner with
  • checking your biggest assumptions or risks.

Go back and update your models as you collect new information and refine your idea.

Creating an impact model

An impact model shows how your business activity leads to good outcomes.

To create a simple impact model, identify the following:

  1. problem – the thing you want to help solve.
  2. participants – who or what you want to help.
  3. activities – the things you do that help you make a difference.
  4. outputs – the immediate result of your activities.
  5. outcomes – the positive changes for people or the planet because of the things you do (short-term, medium-term and long-term).
  6. lasting impact – the overall change you aim to make.

Identifying and solving the problem

First, ask yourself what social or environmental problem you want to help solve. Answering this question identifies the overall purpose for your business.

Your purpose should:

  • aim to solve a problem
  • be inspirational
  • be simple
  • be broad.

To solve the problem, ask yourself what impact you want to make. This question can help you solve the problem you’ve identified.

learning resource

Develop your own models

Use our template to answer the above questions and sketch out your business model and impact model. Use this template with a brand-new idea, or to boost the good your existing business does.

Develop your business and impact models

Making money in the long term

  1. Q1

    Who will your customers be?

    Customers are people who support your business financially. They are the core of your business model. Be clear on who they are from the start.

    Identify different types of customers. For each type of customer, identify specific groups you want to target.

    For example:

    • buyers
    • investors
    • donors
    • sponsors.
    Understanding your customers
  2. Q2

    What issues do your customers have?

    This will help you create things they need and want. 

    Think about:

    • why they would want to give you their money
    • how others are currently solving these problems.
  3. Q3

    What makes your business unique?

    Think about:

    • what benefits your ideal customers will get from your business
    • what will make your business stand out to them.
    Developing your unique selling point
  4. Q4

    How will you solve your customers’ issues?

    The products or services you’ll provide to solve your customers’ issues represents your unique value.

    Finding the value in your business
  5. Q5

    How will you reach your customers?

    Think about how you’ll market and distribute your products to make sure your customers know about you.

    Supply and distribution
  6. Q6

    How will you make money?

    Think about:

    • how much you’ll charge for your products or services
    • how you will charge
    • if you’ll charge everyone the same, or have different prices for different people
    • other types of income – for example grants, donations or sponsorship.

    Use rough estimates if you need to but make sure these reflect the size of your business. Use our step-by-step guide on forecasting and modelling to check your numbers.

    Financial models to help you succeed
  7. Q7

    What will your operating costs be?

    Estimate your day-to-day running costs, plus the costs of fulfilling your overall purpose. Don’t include the cost of starting your business.

     

    Consider the costs of:

    • making and delivering your products or services – for example materials, rent, staff, power
    • fulfilling your overall purpose – for example, free giveaways
    • finding new customers – for example, marketing and sales.
    Cash flow forecasting
  8. Q8

    What will you measure?

    Think about the numbers that will show your business and impact models are working. 

    For example:

    • how much you’ll need to sell to fulfil your purpose
    • what ratio of costs to income you’ll need.
    Measuring the impact of your purpose led business
  9. Q9

    What advantage do you have over other businesses?

    This might include:

    • having special knowledge that others don’t have, like a secret recipe or a special design
    • having partnerships that others don’t
    • being able to use something for free that others can’t.
    Promote your business

Thanks to others for the questions on this page

The questions above are based on:

  • Business Model Canvas by Alex Osterwalder
  • Lean Canvas by Ash Maurya
  • Social Lean Canvas by Rowan Yeoman, Dave Moskovitz and the Ākina Foundation.

All these canvases are licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

LAST REVIEWED: 10th July 2025

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