ingMiranda Project- Social Enterprise Business Plan Presenters:

Edwin LauLydia ZhengKenny ChenJustin Luo

Background

- Increasing number of women in prison – 8.5% annually, 2011~14 - Increasing reoffending rate of ex-inmates - 40% in NSW, 2014

Consequently, the incarceration and recidivism rate for women has become a serious social problem that government has yet committed itself to resolve

Therefore, Miranda project is developed as a treatment and support for women out of prison

Our team is aimed at building a self-sustainable social enterprise that provides job opportunity and becomes financially independent from Miranda

Scene Setting

There are two biggest objectives of Miranda social enterprise:

1. To provide employment that accommodates the characteristics of the women within our target group: They are mostly identified with: • Low education attainments and limited employment history: Solution: different positions with a range of skills to accommodate different employee capabilities• Parenthood: Solution: Flexible working arrangement• Low self-esteem and poor mental status: Solution: Training and mentoring program

2. To achieve economically feasibility, sustainability and scalability: It requires the followings: • Realistic business model• Partnership with other organization

Upcycling

›What is upcycling?

Garbage → Treasuries

›What’s the difference between upcycling and recycling?

Adding value

See how UPCYCLING works!

https://www.youtube.com/watch?v=jF9C8bml2a4

Competitor Analysis

From somewhere Maison Briz Vegas UpcycleSdtudio

Location UK Brisbane Online Platform

product range Apparel Apparel Homeware and Accessories

Input Source

textile rags within manufacturing process; partnership with Topshop

post-consumer waste; collection from charity shop

Global partnership; crowdsourcing

Production Mass producton (common)

Higher-end fashion (unique)

Higher-end fashion (unique)

Competitor Analysis

Conclusions for our competitor analysis:

•Famous apparel labels mainly focus on using pre-consumer surplus as input source to produce upcycled clothing •Most upcycled apparel in the market are higher-end fashion

Our comeptitve advantages in Australian market: ›Unexploited secondhand garments as input source

›Unique style clothing ›Targeting customer are young fashion chasers with less apparel budget

Internal Business Process

Target employees generally have Low education attainment

→ Business process design needs to accommodate a range of employee capabilities

So the process should comprise: •Varying skill levels•entry level jobs

Simple steps of production process:

Positive impacts on our target employees:•Rebuilding confidence and regain self-esteem •Ongoing training program → Postive career progression

Sourcing

Sorting

Cleaning

Fastening, Finishing touches and embellishments

Garment creation

↓

↓

↓

↓

↓Creating bespoke garments

Further consideration

› Outsourcing some business process so as to focus on our key business activities with scarce financial resources

Buyers and suppliers analysis

Buyer Force: Growing interest towards upcycled apparel in the market

Upcycling -> Fashionable innovations New fashion -> a popular trend Who are our target customers? Environmentalist? - Start up customer group (low income, high interest in innovative ideas) - Scale up customer group (higher income, high interest in unique product )

Supplier Force: Huge amount of resources waiting to be upcycled

Potential supplying resources: Clothing - ranks the third as wasteful consumption in Australia Suppliers? - Citizens (donation program) – volatile, small scale, ambiguous source - Partnership with other business programs – stable, large scale, explicit source,

hard to find and communicate

Income Generation Analysis

How is upcycling attractive in economic aspect?

2012 in US: Upcycling industry $14.1 billion revenue, $2.7 billion annual payroll, 170,000 jobs

2005 in Etsy: the site now has over 15,000,000 active members and brings in $500,000,000+ in annual sales

How to make income (sales)?

Online Platform: Upcycling Studio, Swechha Store, Deluxe - Popular, cost-effective, efficient , competitive

Physical market (Selling Stall): Kirribilli Market; REDwater Market; Kingsford Rotary Market;

- Practical display; better communication

Financial Viability

› The amount of initial funding required = the necessary costs to actually start running the business (mostly fixed costs)

90%

5%

1% 1% 1% 1% 1% Total Cost - $320566

SalaryRentOutsourcing laundryMiscellaneous materialMarketingITEquipment

86%

14%

Salary Breakdown

Salary (ex-convicts)Store manager's salary

Minimizing Cost of Operation

› The fundamental cost in clothing industry – rent and design cost

Our Solution: Online platform and self-design methodology would serve a greater interest benefitOnline store: lowering rent Effectively lower the cost of operation by using an online platform instead

of a physical shop Aligning with the pace of technological change

Self-design customization: reduces design cost, diversification of business

› Allowing a greater flexibility of customers’ choice

› Transferring the design costs onto the customers, as they design their own products

Self-design Customisation from Uniqlo› http://utme.uniqlo.com/about_en.php

Inspiring Idea: Potential Investors

Approaching philanthropic trusts and individual foundations Or > crowdfunding is also a possible solution (Kickstarter, social bonds)

Value of Business Plan

Social impact:• Lowering incarceration and

recidivism rate (Ugger 2000)

• Alleviating utilization of government resources;

Economic impact: • Free up government financial

resources for transferring focus to other economic aspects

• Higher employment rate;

As the government financial burden alleviates, more resources can be reallocated to stimulate other economic

aspects.

As the enterprise scales up, more employees can be hired, which further decreases the recidivism rate.

Q&A

THANKS