HopeMob 1
BUSINESS PLAN
December 5, 2011
Prepared by
Drew Fann
Matthew Dolson
Zachary Ford
Jordan Jones
Rachel Phillips
TABLE OF CONTENTS
Executive Summary 3
Mission, Vision, & Values 9
Overall Goals 10
Strategic Goals 11
Business Model 12
Management Structure & Job Descriptions 14
Marketing Plan 17
Financials 19
Sensitivity Analysis 24
SWOT 26
EXECUTIVE SUMMARY
Opportunity:
At HopeMob, we believe every individual and organization should be fixated on progressing the collective human ideal of a more civil, compassionate, and well-functioning society. However, we believe this aim is futile if individuals do not have access to the immediate needs that will allow them to be engaged in that society. We have a unique opportunity to be the innovative link between those who have needs and those with resources.
The Concept:
Social and cultural innovation within society is significantly curtailed when individuals’ predominating focus is set on their pressing needs, rather than their opportunities. HopeMob’s vision is to assist those people in need by connecting them to those with corresponding resources through innovative technological means, such as Twitter, Facebook and HootSuite.
Management, Board of Directors, Advisory Board, and Other Partners:
Our management team combines the experiences of executives and an advisory board with extensive backgrounds in managing and developing successful NGO’s. HopeMob currently has one executive (Shaun King, Founder) and is in the process of identifying and hiring a second executive to ensure accountability. The main source of support staffing will be in the form of strategic volunteers, which will be involved in development, technical implementation and administration. The organization’s executive staff and operations will be headquartered in Los Angeles, California.
Strategic Advantages:
Brand Identity – Does not necessarily apply to HopeMob as of now, but for Shaun King who is known as the “Twitter Pastor”. With his name recognition and current following the branding of HopeMob will be expedited.
Focus on our Mission – While other organizations meet needs of individuals, they eventually lose sight of what their Mission and Vision are. Our company is structured and organized in such a way that the Mission will continually drive everything we do.
Scope – While HopeMob is starting in Los Angeles, there is a national scope we desire to pursue. The more people become aware of HopeMob and are committed to its’ success, the easier it becomes to scale fast across the United States.
Strategic Partnerships – Our strategic relationships will provide us differentiation from competition and create an efficient avenue to link resources to needs. Our strategic relationships with ‘on the ground’ organizations such as Soup Kitchens, to Los Angeles churches, to the universities of UCLA and USC, will provide us differentiation and create an efficient avenue to link resources to needs.
Co-opetition:
Presently, there is only one other non-profit organization that is built on a similar mission as HopeMob and that is Beremedy. Beremedy is an Atlanta, Georgia based non-profit organization with a purpose and mission to connect those in need with those who can help through social media. Although Beremedy’s mission is almost identical, HopeMob does not consider Beremedy a competitor, rather HopeMob is a force multiplier in the fight to help those in need of tangible items attain them in an efficient and expeditious manner. In fact HopeMob hopes to partner with Beremedy in the future to link the East and West coasts of the United States.
Differentiation - However, there are a couple of items that do differentiate HopeMob from Beremedy. These include: (1) HopeMob Fund. This fund will be used to offset requested needs that are not responded too. (2) HopeMob plans to scale nationally very quickly unlike Beremedy who is still predominately localized within the greater Atlanta, Georgia area. (3) HopeMob takes pride in building lasting partnerships with both individuals and community organizations. Finally, (4) HopeMob takes a holistic approach i.e. one need at time, not just one thing. Specifically, until the need is met, HopeMob will not move past that initial request.
Sources of Revenue:
HopeMob will have an opening cash balance of $45,000. However, HopeMob’s sustaining cash flow is coming through two primary avenues, donations and grants.
Start-up cash:
· HopeMob is fortunate to begin with an opening balance of $45,000 that stems from a $20,000 out-of-pocket donation from the founder, Shaun King, and a $25,000 donation from volunteers, friends, and family members. This opening cash will primarily serve to cover HopeMob’s operating costs until grants and additional donations are received.
Donations:
· Consistent donations are expected beginning month three (November 2012) from committed volunteers in addition to those raised through the speaking tour. 50% of the donations received will be allocated solely towards the HopeMob Fund, which 100% supports the mission. This share will be considered temporarily restricted and 75% of the fund will be distributed monthly to meet the needs of our customers. The remaining 50% not allocated to the HopeMob Fund will be considered general donations and can be utilized to cover the operating costs.
· The start of donations is expected to coincide with HopeMob’s speaking tour taking place in month three. HopeMob plans to visit five churches in the Los Angeles area (Mosaic, Mt. Sinai Missionary Baptist Church, Vinyard Church Fellowship, Wilshire United Methodist, and Saddleback Church). These five churches represent a combined congregation of 28,500 people.
Grants:
· As our 510(c)3 status is yet to be approved, HopeMob will not expect grant money until year two. We are applying for three grants for non-profits in LA with the expectation of receiving one that will aid in the coverage of our operating expenses.
Source: http://www.theahmansonfoundation.org/
o (Expected year 2) Subject: Economically disadvantaged, Human services
§ Type of Support: General/operating support
§ Amount: $19,800
§ Payable: Quarterly over one year
o Subject: Nonprofit management, Voluntarism promotion
§ Type of support: Computer technology
§ Amount: $45,000
§ Payable: Quarterly over one year
o Subject: General support
§ Type of support: Operating support
§ Amount: $10,000
§ Payable: Quarterly over one year
Services Description:
Providing Tangible Items to those in need – HopeMob provides individuals with legitimate needs an avenue to receive those needs free of charge in a timely and efficient manner. HopeMob also seeks to support these individuals in a holistic manner, avoiding one-time handouts in favor of full-being support.
Sponsorship and Advertising – Leverages the social media (Facebook, Twitter, and email), to gain advertisement, sponsorship and customers (users).
Intimate Knowledge of Resource Dispersion- At HopeMob, we believe that there are adequate resources available in the Los Angeles area and the nation as a whole to curb the needs gap. However, a lot of times these resources are misallocated. The giving avenue of Hopemob allows givers to have intimate knowledge of exactly where their donation is going.
Empowerment- HopeMob seeks more than merely a re-allocation of resources. We seek to empower those with abundance to recognize the power of sacrificial giving. We seek to empower those with a shortage to recognize that there is hope for a more luminous future and that this donation isn’t a hand-out, but a belief and investment in their tomorrow.
Market Overview:
Total Giving to Charitable Organizations (Within the U.S.): $290.89 billion in 2010.
Donors - In 2010 80% of philanthropic donors were contributed by individuals and bequests, and the percentage rises to 87% when family foundation giving is included. Corporations comprise 5% of the donations and foundations represent 14%.
Reasons for Donating - Donors support charities they value and trust.
Contributions by Organization Type (in billions) - Religion- $100.63, Education- $41.67, Gifts to Foundations- $33, Human Services- $26.49, Public-Society Benefit- $24.24, Health- $22.83.
Non-Cash Contributions - $52.8 Billion in 2007.
Non Cash Contribution Categories - Corporate Stock- 44.9%, Clothing Donations- 14.4%, Land Donations- 7.7%.
Individual Non Cash Charitable Contributions - Annual gross incomes of $10 million or more: 33.3% of donations, Annual gross incomes between $200,000-$500,000: 12.5%.
Average Non Cash Donation Amount For All Taxpayers Claiming Donations and Deductions - slightly over $7,600.
Los Angeles Overview:
- Population (2010): 9,818,605
- Percent Below Poverty Line (2009): 16% (~1,570,977 citizens)
- Percent Below 50% of the Poverty Line (2009): 8.7%
Percent of Male LA Residents Below Poverty Line:
- 16-17 Years: 26.6%
- 18-24 Years: 23.2%
- 25-34 Years: 13.9%
- 35-44 Years: 15.8%
Percent of Female LA Residents Below Poverty Line:
- 16-17 Years: 26.6%
- 18-24 Years: 26.5%
- 25-34 Years: 20.6%
- 35-44 Years: 19.6%
Percentage of LA Residents Below Poverty Line By Race:
- White: 11.2%
- Black: 24.6%
- Hispanic: 25.7%
- Indian: 22.5%
Marketing & Strategic Alliances
HopeMob’s marketing efforts will be focused on executing the company strategy of serving the community through partnerships and transparency. HopeMob will work closely with key organizations to ensure that its mission will be met and develop credibility. These alliances will also increase awareness of the HopeMob organization and its values. HopeMob expects the majority of its marketing to center around social media, via Facebook and Twitter, and its website. HopeMob will also issue a press release in order to promote itself and announce its organizational mission. Billboard advertising, word of mouth promotion, and monthly email newsletters will also be used, but HopeMob’s main focus is social media.
Financial Overview:
Cash Flows Analysis - In the first year, HopeMob relies on the its opening cash to remain cash flow positive. Without this start-up fund, even as donations begin to roll in, HopeMob would not be able to cover its expenses as half of total donations go directly to the mission and therefore cannot be used for operating costs. Cash Balance alone does not provide an accurate picture as it includes the restricted funds that can only be used to meet needs. To determine operating capacity, the most important factor is the Cumulative Unrestricted Cash, as that amount shows the total that HopeMob can put towards the everyday expenses of the organization to remain solvent.
Statement of Activities Analysis - Through HopeMob’s startup fund and generous donations, all expenses are covered in both years one and two. Total Expenses rise from year one to year two with additional fundraising expenses. To reflect the additional fundraising efforts, total revenue almost doubles to account for greater awareness and a more extensive network of donors.
While total ending assets in year two are roughly $258,000, this includes the temporarily restricted donations, which HopeMob cannot use to cover operating expenses. When accounting for the restricted assets, by the end of year two, the total unrestricted balance is ~$31,500. While this will cover the expenses for the first quarter of year 3, without sustainable donations, HopeMob will run into significant cash flow problems.
HopeMob Fund Analysis - Through allocating 50% of all donations towards the HopeMob Fund, even after utilizing 75% of each month’s allocation, the HopeMob Fund grows from year one to year two and overall creates a cushion to cover unmet needs in the future. As the fund continues to grow, larger needs can be met, providing individuals with more expensive items that may be difficult to receive through volunteer donations alone.
MISSION, VISION, & VALUES
Mission:
HopeMob is a unified movement dedicated to consistently linking unmet tangible
needs to resources.
Vision:
HopeMob aims to eradicate the needs gap in target communities.
Values:
Accessibility
We will be relentless in connecting unmet needs to resources, whatever the avenue.
Passionate Generosity
The world has never been impacted in a positive way by people that were greedy. We believe people genuinely desire to impact their surroundings and align our movement with that.
Trust
We inherently believe in the integrity of individuals and their ability to follow through on their promises.
Respect
We will treat all persons with dignity, while capitalizing on the wealth of viewpoints that reside in our multi-faceted communities. We inherently believe that all contributions should be valued.
Adaptability
We have a keen eye toward bold creativity, continuous progress, and being ahead of the change curve.
Courage
We will foster organizational courage by continually naming and facing our current reality, living our values and vision, sustaining spirit and facing our fears. We will foster individual courage by supporting activity outside of usual bounds.
OVERALL GOALS
- Educate the public about what we do and why we do it.
- Cultivate active friends and advocates – a support base in the community for HopeMob and for the people it serves
- Raise money and equivalent resources in support of our Mission
- Improve HopeMob’s image and public relations with surrounding communities
STRATEGIC GOALS
1. Develop a positive image within the communities we serve
· Social media
· Public service announcements
· Billboards
· Surveys/feedback (Online, phone, comment boxes)
· Build community partnerships
· Having individuals join the HopeMob movement
· Response time
2. To become a transparent Non-profit organization
· Financial information posted on website (Quarterly donations, IS, salaries, etc.)
· Survey/feedback information made available
3. Obtain necessary resources to supplement individual needs
· Donations for HopeMob fund
· People are resources
BUSINESS MODEL
1. Customer Segments
· People with everyday needs willing to seek aid
2. Value Proposition
· Building community partnerships to find needs of individuals
· Providing resources to needs submitted
· Intrinsic satisfaction to person giving resource (leveraged as most important)
· Tax right off to those donating both tangible and monetary resources (Immediate printable documentation)
· Ease of access to needs
· National Scope of HopeMob
· HopeMob fund (Running tally of total available funds for providing resources)
3. Channels
· Social Media (Facebook, Twitter, etc.)