What is a Hybrid Model?
The Marie Management definition of a hybrid model is a combination of for-profit and non-profit businesses or activities operating separately but functioning congruently.
These businesses together increase impact across two or more markets, industries and sectors to add value to internal and external human capital of the hybrid model. It in-turn triples the income and outcome capacity of the business model.
How Can I Build a Hybrid Model?
In order to implement a hybrid model business you must think, design and build beyond the traditional hybrid model “work” concept. Remember that hybrid model in our definition is a series of business operating separately but functioning congruently. Each business has a series of ways it offers programs, products, services or services for internal and external use of all customers, shareholders and stakeholders. A hybrid model is an innovative approach to effectively and efficiently solving multiple problems with the use of complicated systems to solve complex problems.
Hybrid Models you may be aware of are giants such as Apple and Amazon. Both companies diversify processes and systems within several programs, products or services to create dozens of options for engagement, purchase and interaction from both internal and external human capital. Apple has been operating its employee match giving program for 6 years now that donates funds to nonprofit organizations whereas Amazon’s AmazonSmile program has been donating 0.5% of purchases to charitable organizations for the past 10 years. However, neither had a philanthropic arm started upon launching the business or becoming a multi-billion dollar corporation.
Hybrid Model Implementation Requirements
- Startup Hybrid Models Initial Steps to Starting requires understanding why their concept should utilize this business model structure. Upon doing so, it's important for startups to determine how involved they want to be with the for-profit and nonprofit arms of the businesses development. After doing so, it is important for startups to map out the entire hybrid model design from start to finish to include its entire infrastructure, operational ongoing management and strategic planning for future change, growth and transition through the stage of small business.
- Small Business Hybrid Models Initial Steps to Transition requires understanding what internal processes need operational adjustments or implementation of systems. Upon doing so, it's important for small businesses to determine whether another for-profit or philanthropic program, product or service is best to develop given the existing infrastructure and capacity. After doing so, it is important for small businesses to measure its existing companies strength to operate as an entire hybrid model design by evaluating its ongoing management and strategic planning for future change, growth and transition through the stage of scaling to a medium sized business.
- Medium Sized Business Hybrid Model Initial Steps to Grow require understanding the activities of its scalable strategic plan for all businesses, department, functions and operations involved. Upon doing so, it's important for medium sized businesses to determine whether another for-profit or philanthropic program is conducive for its existing capital to support during development. After doing so, it is important for businesses to plan the acquisition of new capital to invest in the financial resources necessary for the new ventures' infrastructure throughout implementation. Lastly it requires an evaluation of its ongoing management and strategic planning for future change, growth and transition through the stage of scaling to an enterprise business.
- Enterprise Business Hybrid Model Initial Steps to Scale requires understanding the risks and return on investment of all expected new activities related to the scalable strategic plan for all businesses, departments, functions and operations involved. After a thorough assessment of the required revenue necessary to implement the new ventures Upon doing so, it's important to diversify new capital to be invested in the financial resources necessary for the new ventures' infrastructure throughout implementation of the business. Lastly it requires an evaluation of its ongoing management and strategic planning for future change, growth and transition through the sustainability of the enterprise.
Benefits of Hybrid Models
The pros of Hybrid Models is the flexibility of business fluidity and the opportunity to functionally grow and scale without constraints. Having a business model that promotes diverse opportunity in every way, not just via its employment structure or income structure, allows stakeholders to be as innovative and creative as possible with programs, products and services that drive revenue.
Hybrid Models are the complex business concepts of the future and they ensure all aspects of business are included in the operational infrastructure design upon implementation vs. being added on at the exit phase of an entrepreneur or executive team member.
How Do I Make Sure Our Business Benefits From A Hybrid Model?
Strategic Planning For a Hybrid Model requires expert attention to detail in developing, streamlining and integrating cross-functional systems. Hybrid Models require similar but separate structures for not just the for-profit and philanthropic activities, but for each department, role and operational function. Developing a hybrid model requires more time than a singular for-profit or non-profit because one missed detail or overlooked process can cause great stress to the bottom line of the business model. Therefore, Marie Management takes this on for entrepreneurs in order for them to truly benefit from the reality of owning and operating a hybrid model.
Hybrid Model Benefits
- Startup Hybrid Model Structure Benefits can be developed in a Low-Profit Limited Liability Company (L3C) setup. L3C companies get their investment from foundations and investors looking for a return on their money. Foundations make program-related investments or PRIs in these companies, which are in the nature of loans and not grants. PRIs count as charitable spending for the investing foundations provided the charitable purpose of the company's project is approved by the IRS. The L3C governing documents are designed keeping this approval in mind.
- Small Business Hybrid Model Structure Benefits can be developed in A Certified B Corp is a for-profit corporation that has been certified by B Lab, which is a non-profit company that measures a company’s social and environmental performance. The conditions of a B-Corp are accountability, transparency, performance, availability and costs.
- Medium Sized Business Hybrid Model Structure Benefits can be developed in a Flexible Purpose Corporation (FPC)which is a new form of hybrid corporation. It is similar to a benefit corporation, except for the fact that its charitable purpose must be more specific. FPCs develop their own standards for accountability and transparency instead of getting external certifications. As of now, very few states allow forming of one or more types of hybrid corporations.
- Enterprise Business Hybrid Model Structure Benefits can be developed in a benefit corporations are created with an objective to have a positive impact on the society and the environment while generating profits for their investors. Structurally, they resemble traditional corporations; they have shareholders as their owners, and they appoint directors and officers just like a normal corporation. However, the officers in charge of operations in a benefit corporation have an additional duty to consider the social and environmental impacts while making business decisions.
Want to Learn More About Hybrid Models?
About Marie Management
Marie Management began operations consulting and managing entrepreneur hybrid models in 2016 with 3 real estate investor companies behind the Founder & Principal Consultant Dr. Jazzmine Nolan-Echols. Now we are servicing 400+ companies in 16+ industries, 8 U.S cities and 3 countries. We strengthen, streamline and scale our clients’ business models in ways they may be overlooking. We believe that by investing in our communities we are directly impacting the bottom line of the next generation’s business ecosystem. By strengthening the for-profit operations of our clients first, we make room for them to explore philanthropy successfully.
Scaling the for-profits of entrepreneurs with philanthropy.
Startup Entrepreneurs ready to set up their companies can get started here. Small Businesses ready to strengthen their for-profit companies for success can get started here. Medium Sized Businesses ready to scale their companies with philanthropy can get started here. Enterprise Entrepreneurs ready to scale their companies with philanthropy can get started here. Entrepreneurs who want to learn more about how our sister companies can help scale and grow their business can learn more here.