youthbuild 2010 national directors’ association meeting thursday january 21, 2010
TRANSCRIPT
YouthBuild 2010 National Directors’ Association Meeting
Thursday January 21, 2010
Ajamu Kitwana Director,YouthBuild Green Business
Initiative
Kerry KnodleExecutive Director, YouthBuild Rockford IL
Carlos MartínConsultant, YouthBuild Green Initiative
1. The Green Economy, YouthBuild USA, & You
2. Creating Your Green Business- Picking a Business Sector
- Doing Market Research- Finding the Money
- Working Through the Business
3. YouthBuild Support for Your Green Business
Source: Booz Allen for USGBC, July 2009
Source: Center for American Progress, September 2008
Source: Global Insight for US Conference of Mayors, October 2008
Which industries, businesses, and jobs do you think of when you
hear “the green economy”?
Sectors & MarketsSource: CAP, September 2008
JobsGreen Construction
Weatherization/RemodelingDeconstruction
Energy AuditingRenewable Energy Installation
Green RetailGardening
Food Delivery/PreparationWaste Management
Land Conservation
Source: Global Insight for US Conference of Mayors, October 2008
Source: Good Jobs First, February 2009
BusinessesGreen Economy Growth
Business Competition Local Services
Innovation Credibility
Green Business Funding Opportunities: Gov’t &
Market Capital: Gov’t, Foundation,
& Private Investors
Opportunities WAP
PHA & Assisted Housing Retrofits Local Customer Needs
Building/Remodeling/Deconstruction Energy Auditing
Small-Scale Renewable Installation Gardening
Waste Management Food Delivery/Preparation
Forestry/Land Conservation/Environmental Monitoring Green Retail
Capital SBA 7(a), Section 504, and Microloan Loans
ARRA: ARC Loans, Work Opportunity Tax Credit, Green Venture Capital
Green Venture Credit Green Business Competitions
How many of you have been involved in the YouthBuild
USA Green Initiative?
How many have your own green programs?
Green Initiative Overview
Youth Training Certifications
Training TA Leadership TA
Support for Recovery Act Funding: Greening Public Housing
Weatherization Assistance Program DOL Green Training Grants
Walmart-YB Green Fellows Green VISTA Volunteers
Green Business Initiative
In order to have programs: Create & Implement Green Business Plans
Expand Programs’ Current Green Businesses Green Current Programs’ Businesses
Develop Business Protocols & National Network
Projects: Identify Recovery Act Business Opportunities
Pilot Graduate Green Business TA Develop Affiliate Green Businesses Beyond
Training Walmart Green Business Seed Grants
Provide direct TA to graduates Pilot in February to provide 1 graduate
with intensive TA business planning Pilot to be replicated with 4-5 other
graduates Leading to long-term business plan for
YouthBuild USA’s involvement
Call for graduates going on now
National and local market research TA services
Business Planning (like this workshop) Business financing
Other ideas and needs?
First-time funding for programs that are: Full and accredited (WebSTA and URD
Submissions, AffNet dues) Involved in YouthBuild USA’s Green Initiative
with 1 year history Involved in their own green activities with 1
year history Developed a preliminary business plan for a
green for-profit entity
Grant Value: $25,000
How many of your programs have or ever had
a separate for-profit business?
YB Affiliates’ For-Profit Enterprises
- To give students training opportunities - To offer a needed local service
- To raise additional revenue - Almost always construction related
-Mixed success rate
Examples:
Fresno YB began a grounds maintenance business in 1993. It reported $2.7M in 2008 revenue, and 30% average gross margins.
The second largest YB program business center began in 2001. It reported $400K+ in 2008 revenue, but -16% average gross margins.
Rockford Business History
Rockford Business Success
…starting with a business plan.
Groups of 3-5 Create a basic business plan in 4
categories The planned business can apply either to
all of the group’s programs or a subset The business must be green Fill out the 4 exercise sheets
Present the basic plan Everyone will give feedback but the
panelists will determine the winner
1. Picking a Business Sector
2. Doing Market Research
3. Finding the Money
4. Working It Through
Background Not just revenue possibilities
But program capacities, too Brainstorming industries, products, &
services Comparing to current services
Brainstorming Goal-setting: Profit + Social Impact?
Measures for both? Deal-breakers
SW = Strengths & Weaknesses
S WCapabilities? USP's (unique selling points)? Resources, Assets, People? Experience, knowledge, data? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications?Financials?
Internal Factors
EXERCISE
I. Brainstorming II. Reality Check 1: Profit?
III. Reality Check 2: Experience? IV. Big Reality Check: SW
V. Goal-Setting
Report Back
Key Lessons Mission Tie-in?
Short-Term or Long-Term? History of Businesses?
Resources SBA:
www.sba.gov/smallbusinessplanner Green for All/SCORE:
www.greenforall.org/what-we-do/capital-access-program/in
troductory-entrepreneurship-workshops REDF
www.redf.org Local Universities, Business Schools, Professional
Associations
Background Not just about customers
But about competitors, too Using reliable data about customers and
markets Using data based on actual consumer surveys and demographic information (not just advocacy
projections) Developing market segments, product niches,
and service distinction Hard look at sector realities (local monopolies?
saturation?) Qualifications and credentials needed to
compete Short- and long-term growth potential
OT = Opportunities & Threats
TOExternal Factors
Market Opportunity? Political Opportunity Competitors?Startup certifications?Startup costs?Partnerships?Funding?Long-Term Prospects?Business Cycles?
EXERCISE
I. Finding Data II. Developing Your Own Consumer
Survey III. Identifying the Competition
IV. Big Reality Check: OT V. Refining the Business
Report Back
Key Lessons Difference between future
likelihood and documented history
Beware political programs and long-term markets
Competitors come in all sizes (some with longer track
records, some with better promotions)
Do your market research regularly!
Resources Industry-Specific Associations
& Governmental Programs Libraries
Social Enterprise TA Groups
Background Not just the money you need
But the money you have And the money you can get if you report
both accurately: budgets and cash flow Social enterprise donors, venture capital,
venture credit, business loans, government-backed loans
Government grants: innovation or targeted communities
Startup Costs
Operating Costs Personnel, Fixed Costs, Variable Costs
Revenue Income Pricing, Margin
Investment Income Program Support (Duration), Other Sustained Investors,
One-Time Investors
Revenue Return Program Requirements, Investor Requirements
Timing Cash Flow v Profit, Time to Profit
EXERCISE
I. Revenue Projection II. Budget
III. Funding Sources IV. Refining Financial Goals
Report Back
Key LessonsDo your cost research (get multiple
estimates and haggle)Price your competition and their
vendorsKnow your limits and your risk-
aversion (money and time)Budget conservatively
Think creatively about investors
Resources Competitors
Related Non-Competing Businesses Pro Bono Accountants
Social Enterprise InvestorsFree Financial Tools:
www.dinkytown.net
Background Organizational Structure
Legal Status Business Licenses and Permits
Professional Licenses and Credentials Professional Regulations
Operational Plans Vendors & Suppliers
Equipment Purchases & Leases Location, Staffing, and Office Support
Administrative Items Alliances
Source: Option A for YouthBuild USA, 2009
EXERCISE
I. Structure II. Operations Plan
III. General & Specific Regulations IV. Alliances
V. Refining Social Goals
Report Back
Key Lessons Do a sample workflow early on
Know the costs of licenses, permits, and any regulation for your budgets
See what your competitors do Gauge your program’s comfort level
at every levelUnderstand how to market in your
sectorLook for alliances that will help you learn in the short-term for long-term
independence
Resources Trade associations
Local city business permitting offices
Board members or staff that have worked in the sector
The Green in Green Business, and the Business in Green Business
Green businesses often involve major startup costs.Green businesses need lots of space, especially if they are
construction or manufacturing related.Green businesses don’t necessarily have instant demand.By definition, some green businesses might not be able to
expand.If you sell your “greenness,” you have to back it up.
Both green and business management require special skills.Pilots might help acquire both skill sets.
Business is cut-throat; unless you offer something unique, why should anyone buy from you rather than your competitor?
You often do not know when things aren’t working well in business; you need to spend time monitoring and reassessing.
Been There, Done That
Kerry’s Final Lessons
Next Steps with YouthBuild USA
Graduate Pilot Affiliate Business Planning Affiliate Business Grants Additional Resources?
YouthBuild Green Initiative
Ajamu [email protected] ● (617) 623-9900
Kerry [email protected] ● (815) 963-6236
Carlos Martín [email protected] ● (202) 459-
3440