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Client Micro-Enterprise The Arc of San Francisco Alan Fox, Chief Operating Officer
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Learning Objectives Learn what a micro-enterprise is Learn what a micro-enterprise is Why establish micro-enterprises Why establish micro-enterprises The Arc of San Francisco’s micro- enterprise program The Arc of San Francisco’s micro- enterprise program –Curriculum –Examples –Results
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What is Micro-enterprise? A small business A small business Meaningful work Meaningful work Economic activity Economic activity Skill development Skill development Socialization Socialization Dignity and self-determination Dignity and self-determination
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Why Micro-enterprise? Labor cost Labor cost –Minimum Wage ordinance –Healthy San Francisco ordinance –Paid Sick Leave ordinance –payroll tax and other taxes Labor regulation Labor regulation Competitive labor market Competitive labor market Economic self-sufficiency and independence Economic self-sufficiency and independence
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Minumum Wages
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Program Milestones Schedule training series and recruit participating clients and DSPs Schedule training series and recruit participating clients and DSPs Deliver training series Deliver training series Review, revise, approve business plans Review, revise, approve business plans Support implementation of plans Support implementation of plans Evaluate implementation of plans Evaluate implementation of plans
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Participant Milestones Secure staff sponsor Secure staff sponsor Attend training series and graduate Attend training series and graduate Prepare and submit business plan Prepare and submit business plan Review and revise plan as needed Review and revise plan as needed Schedule start up Schedule start up Implement business plan Implement business plan
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Individual Outcomes Describe micro-enterprise and basic business concepts Describe micro-enterprise and basic business concepts Prepare a business plan Prepare a business plan Have an opportunity to own and operate a micro-enterprise Have an opportunity to own and operate a micro-enterprise Earn profit equivalent to approximate minimum wage in local jurisdiction Earn profit equivalent to approximate minimum wage in local jurisdiction
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Timeline Feb. 2009 – Training series #1 graduates 12 clients Feb. 2009 – Training series #1 graduates 12 clients May 2009 – Three enterprises open May 2009 – Three enterprises open Jul. 2009 – Training series #2 and #3 graduates 6 clients Jul. 2009 – Training series #2 and #3 graduates 6 clients Aug. 2009 – One enterprise fails and closes Aug. 2009 – One enterprise fails and closes
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Timeline Oct. 2009 – Four new enterprises open Oct. 2009 – Four new enterprises open Dec. 2009– One enterprise closes because client secured paid employment Dec. 2009– One enterprise closes because client secured paid employment May 2010 – The Friendly Café open for 12 months May 2010 – The Friendly Café open for 12 months Jul. 2010 – Training series #4 graduates 3 clients Jul. 2010 – Training series #4 graduates 3 clients
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Come Arrest Me For… Income reporting Income reporting Local Business Tax Registration Local Business Tax Registration Local Gross Receipts Tax Local Gross Receipts Tax Sales Tax Sales Tax Unrelated Business Income Unrelated Business Income Food Safety Inspection Food Safety Inspection Other crimes?? Other crimes??
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Food Safety No cooking allowed No cooking allowed Gloves required Gloves required No food handling, tongs or utensils only No food handling, tongs or utensils only Pre-wrapped or fresh food only Pre-wrapped or fresh food only Sponsor food handler courses offered by local public health jurisdiction Sponsor food handler courses offered by local public health jurisdiction
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Curriculum Outline Five, one-hour workshop sessions Five, one-hour workshop sessions Delivered weekly Delivered weekly Four hours outside homework prep Four hours outside homework prep Client must attend all sessions Client must attend all sessions Staff sponsor must attend all sessions Staff sponsor must attend all sessions Business plan completed outside Business plan completed outside
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Curriculum Outline 1. Orientation 2. Your Idea 3. Your Money 4. Your Market 5. Your Plan
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1. Orientation Open to anyone who is interested, curious, or committed Open to anyone who is interested, curious, or committed Intended to generate awareness and interest in enterprise among Arc clients and other people with disabilities Intended to generate awareness and interest in enterprise among Arc clients and other people with disabilities Communicate expectations and benefits of the workshop, especially Communicate expectations and benefits of the workshop, especially –staff sponsorship –attending all sessions –only graduates will have the opportunity Explain the difference between being an employee and being an owner Explain the difference between being an employee and being an owner
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Key Idea The difference between being an employee and being an owner Employees are paid wages which do not change and are protected by law Employees are paid wages which do not change and are protected by law Owners earn profits which go up and down, and can be losses, due to risk Owners earn profits which go up and down, and can be losses, due to risk Most people with disabilities and disability professionals have no prior personal experience or knowledge of enterprise Most people with disabilities and disability professionals have no prior personal experience or knowledge of enterprise
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2. Your Idea Clarify the relationship between The Arc and the micro-enterpriser Clarify the relationship between The Arc and the micro-enterpriser Emphasize making and meeting commitments about future behavior Emphasize making and meeting commitments about future behavior Develop product or service Develop product or service Understand customer behavior Understand customer behavior –Why do customers buy or not buy? Focus on customer needs Focus on customer needs
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Key Idea The customer’s needs come first Your idea is only good if your customers want to pay for your product or service Your idea is only good if your customers want to pay for your product or service Most customers already buy your product or service from someone else Most customers already buy your product or service from someone else Many people with disabilities struggle to connect products they value and services they enjoy with what customers will pay for Many people with disabilities struggle to connect products they value and services they enjoy with what customers will pay for AKA social thinking AKA social thinking
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3. Your Money Clarify the relationship of revenue and expense to profit Clarify the relationship of revenue and expense to profit Understand competition Understand competition Play the Pricing Game Play the Pricing Game + REVENUE - EXPENSE = PROFIT
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Pricing Game Hand out random amounts of play money to all participants Hand out random amounts of play money to all participants “Sell” first participant bottle of water “Sell” first participant bottle of water Explain the revenue, expense, and profit from the transaction Explain the revenue, expense, and profit from the transaction First participant “sells” to 2 nd participant, and so on… First participant “sells” to 2 nd participant, and so on… Then explore the impact on revenue, expense, and profit when customers have Then explore the impact on revenue, expense, and profit when customers have –More or less money –More or less thirst
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4. Your Market Clarify the relationship between total profit and sales Clarify the relationship between total profit and sales Explore the concept of risk and emphasize how risk can affect plans Explore the concept of risk and emphasize how risk can affect plans Emphasize how risk can increase or decrease revenue, expense, and profit Emphasize how risk can increase or decrease revenue, expense, and profit Discuss potential risks and how they can be mitigated Discuss potential risks and how they can be mitigated
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Key Idea Risk is the chance reality is different than your plan Some enterprises make money and some lose money Some enterprises make money and some lose money The biggest risk is how much customers pay and how much they buy The biggest risk is how much customers pay and how much they buy Your plan can help you to minimize risks Your plan can help you to minimize risks
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5. Your Plan Starting up Starting up Role of the sponsor and others Role of the sponsor and others Sourcing products and purchasing initial stock Sourcing products and purchasing initial stock Planning Planning
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Certificate of Completion
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Role of the Staff Sponsor Get manager permission Get manager permission Attend training series with client Attend training series with client Support development of business plan Support development of business plan Support implementation of plan Support implementation of plan Not an implementer of the plan Not an implementer of the plan Not an employee of enterprise Not an employee of enterprise
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The Arc’s Support Staff support from client’s enrolled day service Staff support from client’s enrolled day service Rent space and equipment including refrigeration, storage, utensils Rent space and equipment including refrigeration, storage, utensils Dry goods including cups Dry goods including cups Signage and marketing support Signage and marketing support Cash drawer, accounting Cash drawer, accounting Lend start-up money Lend start-up money
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The Arc’s Café Space
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Sponsored Enterprises Cafés Cafés –The Snack Shack –Healthy Smoothies –The Friendly Café Rosie’s Tattoo Parlor Rosie’s Tattoo Parlor Tony’s Hook-ups Tony’s Hook-ups More on the way… More on the way…
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The Friendly Café
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Rosie’s Tattoo Parlor
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Snack Shack
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Snack Shack - Staff
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