Entrepreneurship through beekeeping

Phil Minden, MSW, MBA –NCHI Board Secretary Leon Threat, MSW –NCC Development Director Jessica Eiland, MSW –NCHI President

Sweet Sensation is a social enterprise designed to provide employment opportunities and teach entrepreneurship and small business development skills to underserved teens through the design and operation of a beekeeping business.

Environmental Landscape (63113) 78% of families have annual incomes of less than $30,000 27% of families with children <18 are living below the federal poverty level 69% of children receive food stamps 24% of births are to teenage mothers 18% are enrolled in school 16% are unemployed 53% graduate from high school 23% drop out of high school

We can do better… High school students participating in entrepreneurship programs reported a 32% increase in interest in attending college, versus a 17% decrease for non-participants. Occupational aspirations among entrepreneurship participants increased 44% compared to only 10% for non-participating students. 70% of high school students who participate in entrepreneurship programs pursue post- secondary education.

Northside Community Center –Serving the Ville since 1973 –United Way Agency –Full range of youth programs Northside Community Housing –Developed 208 housing units –Raised over $32 million Choices Federal Credit Union –Serves unbanked and under-banked Eastern Missouri Beekeepers –Over 250 local members

Social Problem Definition Teenagers living in north St. Louis desire to be successful but lack the sustainable employment and entrepreneurship opportunities necessary to inspire the pursuit of higher education and meaningful occupational aspirations. Mission The mission of Sweet Sensation is to provide substantial employment and entrepreneurship opportunities to underserved teenagers through the planning and operation of a sustainable, environmentally- friendly beekeeping business. Vision for Success We envision a day when all teenagers will have access to employment and entrepreneurial opportunities that inspire their personal aspirations, inform their knowledge of small business development, and allow them to experience the confidence that derives from self- reliance. Operating Model 1.Provide ongoing education, mentoring and support to assist participants in the planning and operation of a successful beekeeping business. 2.Provide opportunities for learning to assist participants in developing a thorough understanding of entrepreneurship and small business development. Social Impact Strategies 1.Create a new hands-on model to teach entrepreneurship and small business development to underserved teenagers. 2.Operate a sustainable, environmentally-friendly beekeeping business to provide substantial employment opportunities. 3.Promote an expectation of personal achievement through higher education and meaningful occupational aspirations. 1.Participant aspirations for personal success 2.Participant use of entrepreneurship and small business development skills to improve their lives 3.Participant educational achievement 4.Participant occupational achievement DATA 1.Grant funds raised 2.Major donations raised 3.Participant/employee attrition 4.Bee colony survival rates 5.Sales revenue achieved 6.Profit achieved 7.Cash flow achieved 8.Growth targets achieved 9.Business sustainability Organizational & Program Performance Indicators FEEDBACK Social & Economic Impact Indicators

Teenagers living in north St. Louis desire to be successful but lack the sustainable employment and entrepreneurship opportunities necessary to inspire the pursuit of higher education and meaningful occupational aspirations.

Operate a Business Beekeeping –Hive Maintenance –Honey –Beeswax Natural Personal Care Product Line –Lip Balm –Body Cream –Hand Lotion –Shower Gel –Bath Bar –Foot Balm –Candles Teach Entrepreneurship JA Company Program Modified 12-Step Program –Leadership –Business Opportunity –Capitalization –Market Research –Sales Strategy –Business Organization –Business Operation –Production –Inventory Control –Strategy Refinement –Reporting

First Year Action Plan –Capitalization –Grant application pending –NCC & NCHI: long funding history

First Year Action Plan –Recruitment 5 Student Managers; 10 Student Interns –Product Line Development –Sales/Marketing –Expense Management –Customer Satisfaction –Employee Performance –Student Academic Performance –Business Development Curriculum –Sales Revenue

10.6% CAGR

Target –Women: 45 to 54 Years Old –Self-Described Ecologists

Channels of Distribution

Pricing/Competition Main Competitors National Brands Online Craft Brands Local Craft Brands Social Enterprises

Wholesale – 90% of 1 st year sales –Golden Grocer Natural Foods (CWE) –The Natural Way (Webster) –Whole Foods (Brentwood; T&C) Retail – 8% of 1 st year sales –Local Farmers’ Markets Tower Grove Clayton –Special Events Best of Missouri Market Place E-Commerce – 2% of 1 st year sales

Product Line Honey Body Cream Foot Balm Shower Gel Hand Lotion Lip Balm Candles Bath Bar

Beekeeping “Urban beekeepers are so successful because they treat their bees like pets.” Erin Forbes EAS Certified Master Beekeeper

Year % Annual Growth Year % Annual Growth Year % Annual Growth Year % Annual Growth Year % Annual Growth Revenue from Product Sales16,7610%28,71471%46,48962%63,13436%85,56236% Direct Cost of Sales21,0470%24,38716%28,71518%32,65714%38,16717% Gross Profit(4,286)0%4,327201%17,774311%30,47771%47,39556% Gross Margin-26%15%38%48%55% Selling, General & Administrative Expense Salary Expense - Program Staff17,5000%17,5000%26,25050%26,2500%35,00033% All Other14,9890%15,2892%16,98611%18,4048%20,50811% 32,4890%32,7891%43,23632%44,6543%55,50824% SG&A as % of Revenue from Product Sales194%114%93%71%65% Other Operating Income In-Kind Contribution of Facilities from NCHI9,600 (Offsetting costs included in CGS and SG&A) Net Operating Income (Loss)(27,174)(18,862)(15,862)(4,577)1,487 Grants and Contributions55,00010,00015,0005,0000 Net Income (Loss)27,826(8,862)(862)4231,487 Net Cash Flow17,067 (8,033) (811)

Thank You