Social Entrepreneurship: Amos House WORKS
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Social Enterprise & the Amos House Model Eileen Hayes, MSW President & CEO, Amos House November 10, 2010 Use Twitter Hashtag #npweb Special Thanks To Our Sponsors
description
There is a growing trend among nonprofits to pursue their mission not just through philanthropy, but also through developing businesses that support their goals programmatically while also generating revenue that makes them partially or fully self-sustaining. With this webinar, NonprofitWebinars.com launches a series of presentations on successful social enterprises.
Transcript of Social Entrepreneurship: Amos House WORKS
Social Enterprise & the Amos House Model Eileen Hayes, MSW
President & CEO, Amos House November 10, 2010
Use Twitter Hashtag #npweb
Special Thanks To Our Sponsors
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Today’s Speaker
Hosting: Sam Frank, Synthesis Partnership
Eileen Hayes President and CEO of Amos House
Social Enterprise and the
Amos House Model Eileen Hayes, MSW
President & CEO, Amos House
The Power of SE in RI
100+ Social Ventures 300+ Jobs, majority for those with
barriers to employment Decreased burden on social services Talent recruitment and retention RI’s statewide sector approach is unique
Sector Convergence
Traditional Characteristics For Profit Not for Profit
Competitive Collaborative
Private Good Social Good
Market Based Outside Market
Financial Motivation Social Motivation
Advantaged Disadvantaged
Independent Dependent
Individual Collective
Risk-taking Risk-averse
Create Wealth Distribute Wealth
Definition of Social Enterprise
Social enterprises are mission driven initiatives that apply market-based strategies, and entrepreneurship to maximize social impact. The movement includes non-profit, for-profit and hybrid models. Social enterprises have been referred to as “Businesses with a heart”.
SE Impact on Organizations
Source: Powering Social Change: Lessons for Community Wealth Generation for Nonprofit Sustainability, Community Wealth Ventures, 2003 Source: “Enterprising Nonprofits”, Yale School of Management – Goldman Sachs Foundation on Nonprofit Ventures
Timeline
Organizational Readiness Board Buy In
One Champion Full Disclosure/Understanding
Staff Buy In Understanding of Different Skill Sets Understanding of Compensation Difference
Capacity Talent Time Resources
Social Enterprise Tips for Success Consider:
Life Cycle Operations: Marketing, Pricing, HR, Finance Internal Cultural Tensions – Mission vs. Margin Engaging/managing multiple stakeholders Policy/enabling environment How best to incorporate Succession Planning
Social Enterprise Tips for Success Develop:
Quality product Strategic marketing process Appropriate pricing structure The right team:
Do-gooders vs. Good doers industry expertise create a “blended” workforce don’t be afraid to fire non-performers
Plan:
Clearly define your core values Focus: identify your niche Obtain agreement and buy-in before
launch Define your “separation strategy”
Social Enterprise Tips for Success Bankers are hesitant to secure loans with
collateral that if a default and loss could jeopardize organization
Board is a tool to gain capital (social and financial) and financial expertise
Consider your size. Debt financing, investment capital and creation of for profit structures can be too complex for small organizations
Social Enterprise Tips for Success
Consider Capital Campaigns a source of growth capital
Understand tax laws and philanthropic tax credits
Loans are easily renewed. Grants have hidden costs.
Create alliances with business and lenders whenever possible
Social Enterprise Tips for Success Capitalize on the power of word of
mouth and personal selling Fully utilize your social capital Customer service can be a good value
proposition. Can use the same approach the organization uses with clients
Fully leverage your PR capabilities
Social Enterprise Tips for Success Hire good PR people (it is a good investment
but also try for pro bono opportunity) Recruit a spokesperson Create strong relationships with journalists Write your own ideal story Focus on relevant media Think about who is your audience and how
best to target them Press releases should include key terms (for
search engines) and have long shelf life
Social Enterprise Tips for Success Profit maximization not always best strategy
for non-profits
Can’t afford to lose clients – negative mission impact
Loss of clients can have adverse affect on grants received because clients served often a metric
Sometimes appropriate pricing structure can’t cover costs but still could make sense if mission-related
Friendship Café
More Than a Meal
Amos House Bakes
Amos House Builds
Amos House WORKS
Amos House Works
Date Started
Current Employees
Projected Revenues
Projected Deficit
MTAM 2004/05 11 $555,000 $78,000
CAFE Spring ‘10 7 $196,000 $92,000
AHB Fall ‘09 6-7 $145,000 $32,000
Overview of the Businesses
More Than A Meal
More Than A Meal Plant & Equipment -- Crossroads Kitchen, 3 vans, 1 administrative office at Friendship Street Organization -- 1 Exec Chef, 1 Schools Coordinator, 1 Catering Assistant, 7 “externs,” new Business Manager Sales divisions -- Institutional and Catering (roughly 50/50 Institutional --Schools, camps and shelters. School revenue is about $245,000. Schools are Gordon, Bishop Connolly HS, Cornerstone, Community Prep, St. Lukes, Our Lady of Fatima, All Saints Academy, and South Providence Neighborhood Ministries. Catering -- Dominated by sales to non-profits ($135,000; almost 100 accounts). Weakest area is sales to corporate/business customers (less than 20 accounts, and only 5 accounts over $1000/year)
Social Conscience
Friendship Café
Friendship Cafe Purchased Café property in SWAP mixed-use
development in late winter 2009/10; restaurant build-out financed by grants
“Soft” opening with limited hours in May
New Business Manager (Robb DeSimone) with extensive restaurant experience hired in June. Robb has initiated menu expansion, Amos House Bakes, weekend brunch hours, pharmaceutical rep orders.
Café traffic still far below initial estimates
Quality control, training and supervision still not at the right level, but improving
Our Friendship Café has expanded on two levels:
Amos House Bakes was created as a small subdivision of the Cafe and serves as part of our curriculum with interns learning baking skills as well as offering a new source of products for our breakfast sales.
Multiple Bottom Lines
Amos House Builds
Amos House Builds Launched in Fall 2009, but put on hold because of
high turnover and tough market conditions Re-launched in May 2010 with Dean Martineau, an
experienced local contractor Sales have been steady at around $10,000 per
month since June; mostly residential painting and carpentry repair work
Some initial turnover among trainees, but current crew of 5 men working well since July
Current assets include two trucks, a small supply of tools and ladders, and a storage bin of materials at Friendship Street
Stepping Stone Employment
Amos House Builds, like our other businesses, hires graduates from our training programs into “stepping stone” positions.
These positions help our graduates gain “real-world” experience on the job while still having full access to all of our support systems and additional training.
Eventually, graduates from our programs complete their time working for our businesses and move on to jobs with private companies and organizations, opening up positions in our businesses for new graduates.
Some of our graduates are employed at high end restaurants, restaurant chains, construction companies, and landscape companies among other fields of employment. We consider them our success stories.
Success
Social Enterprise and the
Amos House Model
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