Micro-economic Business Opportunities For The Homeless

Description
Mobile Loaves & Fishes, Inc. (MLF) is a non-profit social outreach ministry to the homeless and indigent working poor. The organization has its roots in Austin, Texas’ St. John Neumann Catholic Church.

MICRO-ECONOMIC BUSINESS
OPPORTUNITIES FOR THE HOMELESS


Introduction
• Mobile Loaves & Fishes, Inc. (MLF) is a non-profit social outreach
ministry to the homeless and indigent working poor. The
organization has its roots in Austin, Texas’ St. John Neumann
Catholic Church.
• MLF’s mission is to provide food, clothing, and dignity to our
brothers and sisters in need, and we currently accomplish this
mission through the use of 17 catering trucks that go out onto the
city streets of Austin, San Antonio, New Orleans, Providence,
Minneapolis and Nashville every night of the week and feed more
than 1,000 people in need. This work is enabled by a network of
over 12,000 volunteers. Additionally, our radical Habitat on
Wheels program is providing housing in a supportive community
environment. (www.mlfnow.org/HOW)

Organizational Overview
• Organization Structure: 501c3 non-profit corporation
• Board: 15 members
• Employees: 11
• Volunteers: >12,000

• 2009 budget: ~$1.6 million
• Sources: 90% public support, 10% corporate and foundations
• Uses: 85% Program Services, 8% Fundraising, 7%
Management & General

• MLF leverages a vast network of partnerships across both the
public and private sectors

The Micro-Enterprise Idea
To achieve the goal stated above, the leadership of Mobile Loaves & Fishes
proposes to develop a 'micro-economic business program' that can complement
its existing Habitat on Wheels (HOW) program.

HOW gets people off the street by providing them with recreational vehicle
housing and the support they need to improve their circumstances and heal from
the ravages of living on the streets. This solution not only provides participants
with housing, but also with a supportive community that is dedicated to helping
them effect positive change in their lives and guide them to re-instill a purpose in
their lives.

Learn more about HOW and MLF: www.mlfnow.org/how
“How do we get someone off of the streets for a small but
meaningful amount of money while giving them the freedom and
flexibility that entrepreneurs usually have?”
- Alan Graham (President, MLF)
Why Micro-Enterprise?
Recognizing that many of our homeless population desire to have fulfilling
employment but whose circumstances might not warrant gainful employment we
want to implement a business model to create work for those who are physically
and mentally capable. Many in the industry of service to the homeless have
noticed that most struggle with the typical structure of employment and may even
be learning disabled; struggling to keep a commitment and to stay focused. When
asked what they best like about being homeless one of the common answers is
freedom. We will reach out to those entrepreneurs in the community who desire
to mentor the formerly homeless in starting small flexible businesses. Skills taught
will be startup, management, marketing, customer service and operations. All of
the profit will go towards the newly minted entrepreneur. The goal is to create a
modest living income source that is sufficient to live with dignity within the Habitat
on Wheels community. That income is approximately $850 per month net.
“You will find that most of the individuals who live on the streets have similar
makeup to many of our entrepreneurs but have never had the education,
formation or mentorship to develop this skill. Some of the best are standing
on our street corners marketing for our spare change.”
- Alan Graham (President, MLF)

Modest Living Income
INCOME
Gross Monthly Income $1,032.18
Social Security $64.00
Medicare $14.97
Withholding $103.22
TOTAL $849.99

MODEST LIVING EXPENSES
Housing & Utilities $325
Food, Clothing, Medical $340
Miscellaneous $185
TOTAL $850
30% of the HUD income limits for a single individual living in Austin, Texas is
$14,950. I believe we can house with dignity single individuals who net on a
monthly basis about $850 per month. We call this the Modest Living Income
(MLI).
- Alan Graham (President, MLF)

Universal Living Wage Austin, Texas
www.universallivingwage.org

Austin-Round Rock - $12.92/hour
Living wage hours for MLI = ~80/month
or ~18.50 hours/week
The “Hand Up” Model!
The essence of what we are doing is predicated on transforming the lives of
individuals who for whatever reason find themselves in a state of
homelessness and by virtue of their personal transformation our broader
community is transformed as well.
- Alan Graham (President, MLF)

The “Hand Up” Model
$28,045.00
$14,009.00
$13,092.00
$1.00
$10,001.00
$20,001.00
1 Year Before 1 Year After
Average Annual cost per person Before
and After Permanent Supportive Housing
Placement all Programs - Greater Portland
Service cost Housing cost
Average cost savings
$944
Cost of Homelessness
– State of Maine –
Greater Portland,
September 2007
Cost of housing with
HOW is under
$4,800/year. Includes
rent & utilities.
Impediments to
Conventional Employment
•Criminal History •Basic needs not met
•Mental Health •Poor job history
•Need for Freedom •Hygiene
•Disabilities •Education
•Addictions •Physical Health
There are a variety of issues that impact the
ability of individuals to keep and maintain
conventional employment

Micro-Enterprise Concepts
“The greatest examples of these micro-entrepreneurial opportunities
are in third world countries like Mexico. Cross any border and you will
enter into a gauntlet of small business entrepreneurs hawking
everything from Chiclets to leather belts to jewelry.”

- Alan Graham (President, MLF)




•Hot Dog Tricycle •Burger Waggin’…the Dog
•Refurbished Bicycles •Amazon.com
•Care for your car for teens •Ebay
•Seasonal stand •Fresh Orange Juice Stand
•Arts & Crafts •Vintage RV refurbishing
•Ice Cream/Candy Tricycle •Mobile Vending
MLF’s vision includes the creation of a number of simple,
viable business programs that will provide an infrastructure
allowing for entrepreneurial activity by the population that
MLF serves. Initial ideas include:

Process
Structure

1. Independent vendor
2. Mentor – a successful independent vendor that
volunteers to work with new participants
3. Entrepreneurs & Volunteers
Training

1. Individual members work closely with Independent
Vendors, as a case manager would, monitor
participant’s success and provide him/her with
guidance. Member provide updates which will allow
them to give constructive feedback to Independent
Vendors.
2. Volunteer trainers/Partner Organizations conduct
periodic educational seminars such as business skills,
money management and customer service.
3. Successful Independent Vendors become Mentors and
allow new program participants to shadow them.
4. Members/community volunteers assist successful
Mentors with guidance, planning and networking to
start /run successful venture.
Selection

1. Members would nominate target individuals for review
and selection by the board.
2. Members would approach the targeted individuals to
gauge interest
3. Members would request information from the interested
individuals on drug habits, mental health, criminal
records, education and work experience to select those
that are perceived to most likely succeed.
4. Members will invite successful Independent vendors to
become mentors for new participants
5. Members will invite successful mentors to participate in
an entrepreneurial program that will help them develop
technical and management skills
For selection and training purposes, we envision that the MEP would be led by an
Advisory Board that have established rapport with the target community. The
program would take a tiered approach and offer three levels of opportunities:

Strengths
•Homelessness makes you very entrepreneurial
•The vast network of volunteers and partnerships
•Ability to fund on a small scale
•Living Wage income
•No for-profit layer
•Little overhead
•People love the “teach a person to fish” concept
•Collaboration with other agencies
•Very large volunteer base
•Flexible
•Freedom (you are your own boss)
Weaknesses

•Reliability of this population
•Basic needs MUST be met first
•Mental Health Issues
•Addictions
•Money accountability
•Will volunteers step forward
Opportunities
•Sporting events
•Live music and Festivals
•6
th
Street
•SoCo
•Market demand for services
•Collaboration with other organizations, both
non-profits and for-profits
Threats

?The lack of a safety net
?The entitlement mentality
?Regulatory Issues
SWOT Analysis
Remarkably most of the folks who live on the streets already know how to
fish but it is up to us to guide them to get the license to fish.
-Alan Graham
Mobile Loaves & Fishes – Visionary founder of concept and the 501c3 under which it
will operate. MLF has ~12,000 volunteers from all walks of life who can provide time,
talent and treasure to this concept.

Net Impact Austin - Net Impact Austin is an action-based organization of
professionals and entrepreneurs working directly with Austin business and non-
profits to further social and environmental sustainability. Have been strategic in
vetting out the business plan concept.

SCORE (Service Corp of Retired Executives) – Counselors to America’s small
businesses. SCORE here in Austin has developed a seminar covering such topics
as customer service, basic finance, IRS, sales tax, marketing etc.

Entrepreneurs Foundation of Central Texas - The Entrepreneurs Foundation of
Central Texas is a community of entrepreneurs. We amplify the philanthropic efforts
of our member companies, their entrepreneurs, boards and employees who invest
time, talent and equity to make Central Texas an even better place to live, work and
play. Our programs help build successful corporate cultures and allow start-up
companies to participate philanthropically, even though charitable funds may be
scarce.


Partners
•Holds 200 hot dogs, 150 canned
drinks
•Dog + condiments costs $.50, drink
$.50
•Dog sells for $1.50, drink for $1.00
•Average sale is 2 dogs, 1 drink or $4
•100 Daily sales @ $4 - $150 in costs
- $50 in add’l costs = $200/day profit
to entrepreneur
•Scalable
•Mobile Vending Permit attached to
commissary (MLF has 6 commissaries
in Austin)
•Manageable regulations
•All in, cart under $5,000
•Could empower up to 6 people each
averaging $1,000/mo – enough to live
in Habitat on Wheels RV Community
Hot Dog Tricycle
Retrofit vintage recreational vehicle such as an Airstream into a mobile hamburger/hot dog grill and
offer catering services to parties and events. It would be staffed by those that would be health
department certified and trained.
?Modeled after the for profit Hamburger Man in Dallas
?Substantial income can be earned by the entrepreneur(s)
?Scalable and flexible
?Perfect for private parties, birthday parties, tailgate parties etc
?Collaboration with other agencies who serve similar populations
Burger Waggin’…The Dog
?Reconstruction of RV’s
?Painting in custom colors
?Clean-up and make ready crews
?Potential to employ up to 10 fulltime crew people
The local market is perfect to support this type of
enterprise. More and more local upwardly mobile
professionals are living in downtown lofts and
condominiums. This prevents interaction with the natural
beauty of the central Texas Hill country. By providing
small, lightweight travel trailers which can be towed by
the normal automobile, people can enjoy the exceptional
state park system without the substantial capital
investment in the RV equipment.

Rentals of these small RV’s would be affordable for those
able to enjoy the relaxation of camping with the comforts
of home. The 50’s style small camper trailers have
become popular as of late, for the couple or small family
wishing to “get away” without the hassle of a
cumbersome large RV and truck combination.

Larger RV’s would be refurbished for our HOW program
reducing the cost of RV acquisition by 30%-40%.

RV Restoration/Rentals
The Neatoscan service utilizes a
barcode scanner, PDA (Portable Data
Assistant) and earpiece to allow you to
quickly and easily determine the value
of books and other merchandise while
disconnected from the internet. Getting
started is easy!

Amazon Dot Com Book Sales
eBay is The World's Online Marketplace®, enabling trade
on a local, national and international basis. With a diverse
and passionate community of individuals and small
businesses, eBay offers an online platform where millions
of items are traded each day.

Easy to start:

•Need computer and internet connection
•Mentors
•Stuff
•Low overhead
•Flexible
•Scalable
•Low start-up

Sell items in the worlds marketplace. This is great for
people who are “scrappers”, people who know value
when they see it. Homeless people have a penchant
for finding stuff in all places.

Seasonal Stand
Seasonal and
flexible work
opportunities
that require
unskilled labor.


Opportunities
to employ the
formerly
homeless and
make a Modest
Living Income.

?Place high end deli foods that would appeal to the Austin high tech worker
?Permission from companies such as Dell, 3M, City of Austin, IBM, Applied Materials etc
?Scalable and flexible
?Collaboration with existing successful restaurant owners/managers to ensure success
?Collaboration with other agencies who serve similar populations
Mobile Vending
Mobile Loaves & Fishes has a fleet of catering vehicles; 11 in Austin alone.
These vehicles are available for the most part every morning and noon time
Monday through Friday. Concept would be to have a high end deli service
(Thundercloud type) for a breakfast and lunch meals with permission to visit
corporate campuses around Austin.

?Scalable and flexible
?Tools are readily available and inexpensive
?Popular items are easy to build and affordable
?Handmade items perfect for seasonal lot sales

Woodworking Shop/Tool Bank
Many of our brothers and sisters who live on the streets are very gifted in the
area of carpentry and auto mechanics. We would have an inventory of tools
available for check out so that when opportunities came up the individual
would be equipped to perform any given task. Additionally, a fully equipped
wood shop would be available for those who are capable of creating items
such as those below.

“Remarkably most of the folks who live on the streets already know
how to fish but it is up to us to guide them to get the license to fish.”
-Alan Graham


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