Mike Fox, Jr., CEO of Goodwill Silicon Valley discusses Social Enterprise Development.

1. Social Enterprise
Goodwill of Silicon Valley | June 2014

2. What do we do?
Transform Lives through the
Power of Social Enterprise

3. AGENCY MISSION
The Mission of Goodwill Silicon Valley is to:
• Raise the standard of living and quality of life of
people with challenging or multiple barriers to
employment (clients)
• Create a positive environment for career growth and
learning for our most important asset - our people
(employees)
• Delight our customers in every facet of their
Goodwill experience through our businesses, the
Institute for Career Development and learning
programs (customers)

4. GWSV Overview
• One of the over 165 Goodwill organizations in
North America
• GII collectively – 4 Billion Retail / 5.2 Billion
revenue
• Operate in the counties of Santa Clara and San
Benito.
• A robust Workforce Development division
• $46 Mil. in annual revenue and a collection of real
estate holdings
• 19 stores, 24 collections sites and a contract service
operation
• 650+ employees

5. Individuals
64%
Corporations
25%
Foundations
4%
United Way
1%
Special Events
1%Organizations
5%
A Comparison From the Funding Perspective:
Second Harvest of Santa Clara County
Data source: SHSC annual report 2006-2007
Income from
commercial
free market
activities:
0%

6. A Comparison From the Funding Perspective:
Salvation Army (US)
Data source: SAUS annual report 2006-2007
Income
from
commercial
free market
activities:
17%

7. RETAIL
68%
After Market
19%
CONTRACT
6% WRKFORCE
1%
GRANT
4%
Other Revenue
2%
Income
from
commercial
enterprises:
94%
Data source: GWSV 2010 Financials
A Comparison From the Funding Perspective:
Goodwill of Silicon Valley

8. Goodwill Business’s
• Retail
• 19 stores
• Wholesale Business
• Midwest, Shoes, Books
• After Market Business
• As-IS, Salvage
• Car Reconditioning (Detailing)
• Recycling
• E-Waste, recyclables

9. Goodwill Business’s
• Mattress Recycling
• Homeless Vets Reintegration Program
• Contracts Business
• Kitting, Packaging, Assembly, Sub Assembly,
Fulfillment, Warehousing
• Secure Document Shredding
• Nish - Sheltered Workshop
• e-commerce
− Collectables and Books
• Mission Services - ICD

10. Homeless
Veterans Program
Mattress Recycling
Program
Employment
Readiness Program
GED Preparation
Courses / ESL
Classes
Basic Computer
and
Employability
Workshops
Supportive
Services for
Veterans
Families
MISSION SERVICES
Parole
Re-Entry
Program
After School
Program
Independent
Living Skills
Program
Security Guard
Training
Program
E-Commerce
Program
Wellness Center
Mental Health Clinic

11. FAMILY STRENGHTHENING
Employee Programs
Food Pantry
Christmas Club
Healthy Families
Wellness programs
Credit Union
Employee of the Month
Tax Clinic
Referral Bonus
Eco Passes
GoodFest
Flu Shots
Halloween Contests
Thanksgiving and Christmas Gift Cards

14. Updated Retail Look

15. Almaden

38. Car Detailing KPIs

39. Financial Summary
2012 Plan
2013 YTD

40. Dec 2013 Consolidated P&L

43. Dec 2013 E-Commerce

45. Social Business in Action
• Aqua Agri – Formerly Division of PepsiCo

46. Aqua Agri
• B-Corp
• Location – Tuticorin India
• Purpose – to teach fisherman in Southern India
to grow seaweed and supplement fishing
income
• Average income 5000 rs per month/ USD 83.00

56. WEFAS

57. WEFAS
• B – Corp
• Convert Indian Farmers to Organic
• Benefits
− Healthier Food Supply
− Lower Fertilizer Amounts in Environment
− Lower Costs
− Decrease dependence on Mundi

63. Social Enterprise Tensions
• Employee turn over – part of the plan
• How do you balance Mission vs business
− Employees, Profits, Business Goals,
• Integration of Mission into Business
• Recruiting top business talent
• Business development
− What do customers want and need? Do you
lead with social enterprise

64. Development of Social
Enterprise
• Idea to a plan
• What will be your corporate structure?
− Flexible purpose corporation, b corporation or
Flexible benefit corporation, 501c3?
• What is your vision?
• Is there a need for the service and/or product?
• Market Opportunity
• Start up vs purchase existing business?
• Do you have expertise in the business?

65. Development of Social
Enterprise
• Can you acquire talent to execute the business
• Does business model reflect expertise and
desires of client workforce?
• Do you have adequate cash flow? Banking
Relationships?
• 12-18 months is a good start

66. Levers to success
• Know How – What works best
• Talent – Leadership team that is multi
disciplinary
• Business experience and mission knowledge
• Markets - Market demand, Balance money vs
mission. NO MONEY-NO MISSION
• Capital – Start up costs, cash flow, investment
capital to scale the business
• Policy – Government, Business, and
Community promoting, funding, collaborating
with Social Enterprise

67. Vocational to Social Enterprise
• Construction Labor Vocational Class (16 weeks)
• Remodel Business to support aging in place
• Culinary/Hospitality Vocational Class (16
weeks)
• Business providing low cost meals to non profits
and government institutions
• Landscaping Vocational Class
• Business selling farm to table fruits and vegetables
from GW orchard and organic garden

68. Thank You!