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By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. It was not so long ago that Anna Stork and Andrea Sreshta – founders of LuminAID Lab, a social enterprise that makes solar-powered lanterns – sold their flashlights in batches of one or two through a website they cobbled together themselves. They responded to every single customer inquiry personally and single-handedly ran a successful crowdfunding campaign, “Give Light, Get Light”, where customers bought and also donated thousands of lights for people in the developing world.

Now, a little over two years after Ms Sreshta and Ms Stork took first prize in the University of Chicago Booth’s Social New Venture Challenge, a business plan competition for social enterprises, things are different. Sales have doubled over the past six months, buoyed by 35 new wholesale accounts and a new sales channel on Amazon. The partners received an infusion of $100,000 in the form of a grant from the Clean Energy Trust in Chicago. And in July and August, the company hired – and paid – a team of undergraduate interns to run its social media efforts. “They are getting there,” says Craig Wortman, professor of entrepreneurship at Booth and an informal adviser to Ms Sreshta and Ms Stork.

The past few months have been a time of clarity for LuminAID Lab. It has two distinct ambitions: to provide lights at a deep discount to humanitarian agencies working in disaster-hit regions so relief workers and victims can function after dark, and to sell lights to outdoor enthusiasts and campers at a sufficient profit to support the business. These goals require markedly different sales strategies, marketing plans, and pricing models—things that would be tricky for an established company to pull off and are incredibly challenging for a start-up. “For a while there were so many sales avenues to pursue we weren’t sure which ones to devote our time and energy to,” says Ms Stork, 27.

“But recently we’ve had really good sales through both traditional retail and disaster relief channels. It’s an affirmation that this model can work.” In July, the partners inked a deal to sell the LuminAID on Amazon, the world’s largest online retailer, and formed partnerships with international distributors to sell the light in camping stores across the UK, Japan, Korea, and Germany. They also won accounts with several state emergency management systems in the US and international aid agencies, including Shelterbox, a UK-based group that distributes kits filled with supplies in post-disaster and conflict areas. Ms Sreshta, 29, is a second-year MBA student at Chicago Booth. This semester she is taking one course.

“If we have customers that need to be talked to, I don’t want to put that off because I have to go to class. I want to make sure we’re doing everything we can to move the business forward.” The biggest priority for the company this year is to crack into a large, name-brand sport and camping store. Indeed, “getting early traction with selling” is critical to LuminAID’s future growth, according to Prof Wortman. “They need to get aggressive and network their way into [a big retail outlet] by doing what aggressive salespeople do,” he says. “We are working on building relationships with retailers, refining our packaging, and taking a close look at potential displays,” says Ms Stork.

In late May, the business partners introduced an updated version of their light. The model is similar to the old one—a white rectangle sealed in a sturdy, inflatable plastic bag—but provides light for a day and a half after only five to seven hours of sun exposure. The previous model provided eight hours of light after about six hours of sun exposure. “This shorter charge time is critical because in many places you don’t have continuous sunlight,” says Ms Sreshta. They are also working on a second product: a brighter solar-powered light that requires even less charge time and also powers mobile phones.

While the business partners are eager to diversify their product offerings, Prof Wortman is more cautious. “That’s a tough one,” he says. “The problem with expanding the product line is that you’re doing product development and you’re not selling.” For now, the company is self-financed. The partners have received close to $200,000 in “free money” from business plan competitions and grants, and each chipped in several thousand dollars of their personal savings. Neither Ms Stork nor Ms Sreshta takes a paycheck, and beyond a handful of part-time workers who help with web development and PR, they are the only two employees.

“We are still trying to run things as leanly as possible and scale up in a smart way,” says Ms Sreshta, adding they occasionally consider taking venture funding. “We are always asking ourselves: what does this business need?”

Paper For Above instruction

The journey of LuminAID Lab exemplifies how start-ups can successfully navigate social entrepreneurship by focusing on innovative solutions and strategic growth while maintaining a lean operational model. The founders, Anna Stork and Andrea Sreshta, began with a simple yet impactful idea: developing solar-powered lanterns to serve both humanitarian needs and outdoor markets. Their story showcases the importance of clear objectives, adaptable marketing strategies, and the judicious use of funding in fostering growth in a competitive market.

Initially, their approach was direct and personal, engaging customers through a basic website and crowdfunding campaigns that emphasized social impact. This grassroots beginning allowed them to build a committed customer base and demonstrated proof of concept. As sales grew, they diversified their revenue channels by forming partnerships with international distributors, retailing on Amazon, and securing accounts with aid organizations and emergency management agencies. Such expansion strategies highlight the importance of multi-channel marketing and building relationships to increase market penetration.

A key aspect of their success has been their ability to balance social impact with profit motive. They set two primary goals: to provide affordable, reliable lighting for disaster zones and to sell premium products to outdoor enthusiasts. This dual-market approach requires distinct marketing strategies, pricing models, and sales tactics. Their ability to adapt, by improving product features like reducing charge time for the solar lights and planning new, more efficient models, underscores the importance of continuous innovation in sustaining competitive advantage.

Funding remains a critical element for LuminAID’s growth, with the founders leveraging grants, competitions, personal savings, and occasionally contemplating venture capital. Their conservative approach—maintaining a lean operation with minimal staff and avoiding premature scaling—aligns with best practices in early-stage entrepreneurship, minimizing risk and ensuring sustainability. Their experience illustrates that successful start-ups often prioritize operational efficiency and strategic partnerships over rapid expansion through external funding.

However, they face significant challenges, including the difficulty of entering large retail channels. Experts suggest that building relationships with major retail outlets requires relentless networking, aggressive sales efforts, and refined packaging. The emphasis on gaining early retail traction reflects an understanding of the importance of brand recognition and distribution channels in scaling a social enterprise.

Moreover, their cautious attitude towards product diversification—focusing on perfecting their core offerings before expanding—demonstrates prudent management. The potential to develop complementary products, such as brighter solar lights with mobile phone charging capabilities, signifies strategic innovation, but only when the market readiness and operational capacity align.

In conclusion, LuminAID Lab’s growth trajectory exemplifies how start-ups can integrate social impact with financial sustainability through strategic planning, innovation, and operational discipline. Their experience highlights that careful resource management, continuous product improvement, and strategic alliances are essential for scaling social enterprises successfully in competitive markets.

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