Client MicroEnterprise The Arc of San Francisco Alan

Client Micro-Enterprise The Arc of San Francisco Alan Fox, Chief Operating Officer

Learning Objectives Learn what a micro-enterprise is n Why establish micro-enterprises n The Arc of San Francisco’s microenterprise program n – Curriculum – Examples – Results

What is Micro-enterprise? A small business n Meaningful work n Economic activity n Skill development n Socialization n Dignity and self-determination n

Why Micro-enterprise? n Labor cost – – n n n Minimum Wage ordinance Healthy San Francisco ordinance Paid Sick Leave ordinance payroll tax and other taxes Labor regulation Competitive labor market Economic self-sufficiency and independence

Minumum Wages

Program Milestones Schedule training series and recruit participating clients and DSPs n Deliver training series n Review, revise, approve business plans n Support implementation of plans n Evaluate implementation of plans n

Participant Milestones Secure staff sponsor n Attend training series and graduate n Prepare and submit business plan n Review and revise plan as needed n Schedule start up n Implement business plan n

Individual Outcomes Describe micro-enterprise and basic business concepts n Prepare a business plan n Have an opportunity to own and operate a micro-enterprise n Earn profit equivalent to approximate minimum wage in local jurisdiction n

Timeline Feb. 2009 – Training series #1 graduates 12 clients n May 2009 – Three enterprises open n Jul. 2009 – Training series #2 and #3 graduates 6 clients n Aug. 2009 – One enterprise fails and closes n

Timeline Oct. 2009 – Four new enterprises open n Dec. 2009 – One enterprise closes because client secured paid employment n May 2010 – The Friendly Café open for 12 months n Jul. 2010 – Training series #4 graduates 3 clients n

Come Arrest Me For… Income reporting n Local Business Tax Registration n Local Gross Receipts Tax n Sales Tax n Unrelated Business Income n Food Safety Inspection n Other crimes? ? n

Food Safety No cooking allowed n Gloves required n No food handling, tongs or utensils only n Pre-wrapped or fresh food only n Sponsor food handler courses offered by local public health jurisdiction n

Curriculum Outline Five, one-hour workshop sessions n Delivered weekly n Four hours outside homework prep n Client must attend all sessions n Staff sponsor must attend all sessions n Business plan completed outside n

Curriculum Outline 1. 2. 3. 4. 5. Orientation Your Idea Your Money Your Market Your Plan

1. Orientation n 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 Communicate expectations and benefits of the workshop, especially – staff sponsorship – attending all sessions – only graduates will have the opportunity n Explain the difference between being an employee and being an owner

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 n Owners earn profits which go up and down, and can be losses, due to risk n Most people with disabilities and disability professionals have no prior personal experience or knowledge of enterprise n

2. Your Idea Clarify the relationship between The Arc and the micro-enterpriser n Emphasize making and meeting commitments about future behavior n Develop product or service n Understand customer behavior n – Why do customers buy or not buy? n Focus on customer needs

Key Idea The customer’s needs come first n n 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 Many people with disabilities struggle to connect products they value and services they enjoy with what customers will pay for AKA social thinking

3. Your Money n n n Clarify the relationship of revenue and expense to profit Understand competition Play the Pricing Game + REVENUE - EXPENSE = PROFIT

Pricing Game n n n Hand out random amounts of play money to all participants “Sell” first participant bottle of water Explain the revenue, expense, and profit from the transaction First participant “sells” to 2 nd participant, and so on… Then explore the impact on revenue, expense, and profit when customers have – More or less money – More or less thirst

4. Your Market Clarify the relationship between total profit and sales n Explore the concept of risk and emphasize how risk can affect plans n Emphasize how risk can increase or decrease revenue, expense, and profit n Discuss potential risks and how they can be mitigated n

Key Idea Risk is the chance reality is different than your plan Some enterprises make money and some lose money n The biggest risk is how much customers pay and how much they buy n Your plan can help you to minimize risks n

5. Your Plan Starting up n Role of the sponsor and others n Sourcing products and purchasing initial stock n Planning n

Certificate of Completion

Role of the Staff Sponsor Get manager permission n Attend training series with client n Support development of business plan n Support implementation of plan n Not an implementer of the plan n Not an employee of enterprise n

The Arc’s Support Staff support from client’s enrolled day service n Rent space and equipment including refrigeration, storage, utensils n Dry goods including cups n Signage and marketing support n Cash drawer, accounting n Lend start-up money n

The Arc’s Café Space

Sponsored Enterprises n Cafés – The Snack Shack – Healthy Smoothies – The Friendly Café Rosie’s Tattoo Parlor n Tony’s Hook-ups n More on the way… n

The Friendly Café

Rosie’s Tattoo Parlor

Snack Shack

Snack Shack - Staff