MICRO ENTERPRISE 101

MICRO ENTERPRISE 101 Maggie Phiri Ron Irvine Micro Enterprise Specialists

HISTORY AND BACKGROUND • Traditionally, the business sector had been categorized into three groups: large, medium, and small. • The U.S. Small Business Administration (SBA) defines a small business as having up to 500 employees. • In 1991, the SBA recognized Micro Enterprise (ME) as a separate category of business because of growing interest. (see Fact Sheet on Micro Enterprise) Source: INNOVATIONS IN MICROENTERPRISE DEVELOPMENT IN THE UNITED STATES, Accion USA, 2006

LOCAL HISTORY • In 2005, Network 180 started the Micro Enterprise Program in Kent County. • It assists individuals with developmental disabilities to start their own businesses. • It is an alternative way for individuals to earn income. • Network 180 provides a startup loan of up to $500 for those that need it.

ORGANIZATIONS INVOLVED • Thresholds, Inc. • Spectrum Community Services • MOKA Corporation • Hope Network • Goodwill Industries International, Inc.

TRAINING PURPOSE • To provide tools and resources needed to be successful in ME • To clarify the business development process • Business Concept • Feasibility Assessment & Interest Survey • Market Research (product and customers) • The Business Plan • Marketing and Sales • Expansion (if desired)

SUPPORT NETWORK • ME starts with a Person Centered Plan (PCP) with the individual at the core • Each support network includes: • Direct staff • Family and other natural supports • Supports Coordinators • ME Specialists • Community

SUPPORT NETWORK Me

SUPPORT NETWORK Direct Staff Family & natural supports Me

SUPPORT NETWORK Supports Coordinator Micro Enterprise Specialists Direct Staff Family & natural supports Me

SUPPORT NETWORK Community and its resources Churches, neighbors, friends, relatives Supports Coordinator Micro Enterprise Specialists Direct Staff Family & natural supports Me

BUSINESS CONCEPT • Identify the business concept • Is the product/service something people want to buy? • Is the product/service unique or different? • Does the product/service match the person’s interests and abilities?

FEASIBILITY • Every business starts out in a feasibility phase. • What parts of the business can they do independently? • What do they specifically need support with? • Is this what the individual really wants? • Does it involve the kind of work they want to do? • Is the person driven or passionate about the business concept? • Who’s idea is it?

FEASIBILITY • Every business starts out in a feasibility phase. • What parts of the business can they do independently? • What do they specifically need support with? • Is this what the individual really wants? • Does it involve the kind of work they want to do? • Is the person driven or passionate about the business concept? • Who’s idea is it? • Really?

FEASIBILITY • Every business starts out in a feasibility phase. • What parts of the business can they do independently? • What do they specifically need support with? • Is this what the individual really wants? • Does it involve the kind of work they want to do? • Is the person driven or passionate about the business concept? • Who’s idea is it? • Really? • No, Really?

MARKET RESEARCH • Market surveys • A list of questions to ask potential customers • Would you buy this product/service? • How much would you pay for it? • Customer preferences: styles/colors/flavors/sizes/etc. • Determine the target market • Test the market • Make samples • Sell to customers (family, friends, community)

THE BUSINESS PLAN • It is a detailed report of all aspects of the business creating a step-by-step action plan. • The findings from the market research are recorded in the business plan. • It is a working document that can be used throughout the business development and growth. • It also shows Network 180 that the business has been well thought out and planned prior to requesting funds.

MARKETING AND SALES • Marketing is “. . . a set of processes for creating, communicating, and delivering value to customers . . .” (American Marketing Association) • Sales are vital for every business because that is how a business generates income.

MARKETING AND SALES In marketing, “perception is reality” • Name • Logo • Price • Packaging • Display • Consistent message throughout all marketing materials

MARKETING AND SALES • People (Target Market) • Product/Service • Price • Placement (Distribution) • Promotion (Sales)

MARKETING AND SALES Ideas from ME Club • Flyers • Newspaper • Open House • Word of mouth • Church and Agency Newsletters • Press release, i.e. TV, radio, newspaper • Craft shows, indoor flea markets, and farmers’ markets • Carry business cards, product lists, and samples in the community • Walking Billboard - Put business information on leather jacket or t-shirt • Bulletin boards at the grocery store, restaurants, coffee shops, and churches

EXPANSION • What are your short term goals? • Where do you see your business in one year? • What are your long term goals? • Where do you see your business in 3 to 5 years? • Expand the customer base • Expand/diversify your product/service

WHAT NEXT? Please refer to the necessary forms in your ME Folders.

MICRO ENTERPRISE STEPS Interested Person Direct Staff Supports Coordinator Micro Enterprise Specialists Feasibility Assessment (includes market research) Write the Business Plan Continue Feasibility Phase

MICRO ENTERPRISE STEPS Interested Person Direct Staff Supports Coordinator Micro Enterprise Specialists Feasibility Assessment (includes market research) Write the Business Plan Continue Feasibility Phase Yes

MICRO ENTERPRISE STEPS Interested Person Direct Staff Supports Coordinator Micro Enterprise Specialists Feasibility Assessment (includes market research) Write the Business Plan Continue Feasibility Phase ??? Yes

ME RESOURCES • ME Specialists • ME Club (next meeting Jan. 6, 1:00 to 2:00 Rm. 1-F) • ME Committee (monthly, 3rd Wednesdays, 2:00) • The ARC of Kent County • Call for benefits planning before submitting a business plan • This ensures that you do not loss your SSI or Medicaid benefits as you increase your income • Contact Maggie Kolk 459-3339 • Estate Sales Warehouse: sell your products 7 days per week without being there! • Near future: on-line sales (Spearia: an on-line marketing company) • Davenport University: ME is the DU Cares project for the year

THANK YOU FOR COMING • Maggie Phiri • MOKA Corporation • (616) 301-2218 • mphiri@moka.org • Ron Irvine • Hope Network • (616) 726-1976 • rirvine@hopenetwork.org • Any questions? • Please feel free to contact us at any time.

MICRO ENTERPRISE 101