Sweet SensationEntrepreneurship through beekeeping

Management Team

• Phil Minden, MSW, MBA– NCHI Board Secretary

• Leon Threat, MSW– NCC Development Director

• Jessica Eiland, MSW– NCHI President

Business Overview

Sweet Sensation is a social enterprise designed to provide employment opportunities and teach entrepreneurship and small business development skills to underserved teens through the design and operation of a beekeeping business.

Need and Opportunity

• Environmental Landscape (63113)• 78% of families have annual incomes of

less than $30,000• 27% of families with children <18 are

living below the federal poverty level• 69% of children receive food stamps• 24% of births are to teenage mothers• 18% are enrolled in school• 16% are unemployed• 53% graduate from high school• 23% drop out of high school

Need and Opportunity

We can do better…• High school students participating in

entrepreneurship programs reported a 32% increase in interest in attending college, versus a 17% decrease for non-participants.

• Occupational aspirations among entrepreneurship participants increased 44% compared to only 10% for non-participating students.

• 70% of high school students who participate in entrepreneurship programs pursue post-secondary education.

Business Partners

• Northside Community Center– Serving the Ville since 1973– United Way Agency– Full range of youth programs

• Northside Community Housing– Developed 208 housing units– Raised over $32 million

• Choices Federal Credit Union– Serves unbanked and under-banked

• Eastern Missouri Beekeepers– Over 250 local members

Social Problem DefinitionTeenagers living in north St. Louis desire to be successful but lack the sustainable employment and entrepreneurship opportunities necessary to inspire the pursuit of higher education and meaningful occupational aspirations.

MissionThe mission of Sweet Sensation is to provide substantial employment and entrepreneurship opportunities to underserved teenagers through the planning and operation of a sustainable, environmentally-friendly beekeeping business.

Vision for SuccessWe envision a day when all teenagers will have access to employment and entrepreneurial opportunities that inspire their personal aspirations, inform their knowledge of small business development, and allow them to experience the confidence that derives from self-reliance.

Operating Model1. Provide ongoing education,

mentoring and support to assist participants in the planning and operation of a successful beekeeping business.

2. Provide opportunities for learning to assist participants in developing a thorough understanding of entrepreneurship and small business development.

Social Impact Strategies1. Create a new hands-on model

to teach entrepreneurship and small business development to underserved teenagers.

2. Operate a sustainable, environmentally-friendly beekeeping business to provide substantial employment opportunities.

3. Promote an expectation of personal achievement through higher education and meaningful occupational aspirations.

1. Participant aspirations for personal success

2. Participant use of entrepreneurship and small business development skills to improve their lives

3. Participant educational achievement

4. Participant occupational achievement

DATA

1. Grant funds raised

2. Major donations raised

3. Participant/employee attrition

4. Bee colony survival rates

5. Sales revenue achieved

6. Profit achieved

7. Cash flow achieved

8. Growth targets achieved

9. Business sustainability

Organizational & Program Performance Indicators

FEEDBACK

Social & Economic Impact Indicators

Social Impact Model

Social Problem MissionThe mission of Sweet Sensation is to provide substantial employment and

entrepreneurship opportunities to underserved teenagers through the

planning and operation of a sustainable, environmentally-friendly beekeeping

business.

VisionWe envision a day when all teenagers will

have access to employment and entrepreneurial opportunities that inspire

their personal aspirations, inform their knowledge of small business

development, and allow them to experience the confidence that derives

from self-reliance.

Teenagers living in north

St. Louis desire to be

successful but lack the

sustainable employment

and entrepreneurship

opportunities necessary

to inspire the pursuit of

higher education and

meaningful occupational

aspirations.

Social Impact Model

Impact Strategy

Operate a Business• Beekeeping

– Hive Maintenance– Honey– Beeswax

• Natural Personal Care Product Line– Lip Balm– Body Cream– Hand Lotion– Shower Gel – Bath Bar– Foot Balm – Candles

Teach Entrepreneurship• JA Company Program• Modified 12-Step Program

– Leadership– Business Opportunity– Capitalization– Market Research– Sales Strategy– Business Organization– Business Operation– Production– Inventory Control– Strategy Refinement– Reporting

Implementation Strategy

• First Year Action Plan– Capitalization

Item Description

Estimated Cost

Salary & Benefits Project Manager (1/2 time) salary and fringe Student participant stipends (5) Student matched savings accounts (5)

$24,689

Occupancy Utilities (space will be provided in-kind) 3,980 Training/Development Student registrations (5) 375 Insurance General and product liability 6,000 Travel Local mileage for project manager 675 Equipment Hives, hive tools, protective clothing, honey extractor 3,206 Website Development Bee’s Best product line website 8,000 Supplies Beekeeping supplies, production supplies 6,717 Marketing Website hosting fee, product samples 1,500

Total Capitalization Need $55,142

Total Capitalization Request $55,000

– Grant application pending– NCC & NCHI: long funding history

Implementation Strategy

• First Year Action Plan– Recruitment

• 5 Student Managers; 10 Student Interns

– Product Line Development– Sales/Marketing– Expense Management– Customer Satisfaction– Employee Performance– Student Academic Performance– Business Development Curriculum– Sales Revenue

Market Analysis

• 10.6% CAGR

3.84.8

8.5

13.6

0

2

4

6

8

10

12

14

16

2003 2005 2011 2016(projected)

Natural Personal Care ProductsU.S. Market

Retail Sales ($billions)

Market Analysis

• Target– Women: 45 to 54 Years Old– Self-Described Ecologists

2011 2016 (projected)

Skin Care 5.9 9.4

Haircare 2.1 3.5

Make Up 0.455 0.735

0

2

4

6

8

10

Sale

s ($

billi

ons)

Natural Personal Care ProductsUS Market by Product Type

Market Analysis

• Channels of Distribution

Health and Natural Food

Stores and Supermarkets

39%

Mass Market38%

Specialty Stores8%

Direct Sales7%

Departments Stores

5%

All Other3%

Natural Personal Care ProductsChannels of Distribution

Market Analysis

• Pricing/Competition

HoneyLip Balm

.15 oz

Body Cream

2 to 4 ozLotion

6 to 8 oz

Shower Gel

8 to 10 ozBath Bar3 to 4 oz

Foot Balm

3 to 4 ozCandles2 tapers

Average 8.58 2.99 16.03 13.31 15.67 6.66 12.80 10.12 Social Value Premium (25%) 10.72 3.74 20.03 16.63 19.58 8.32 16.00 12.65 Wholesale Discount (50%) 5.36 1.87 10.02 8.32 9.79 4.16 8.00 6.33

• Main Competitors• National Brands• Online Craft Brands• Local Craft Brands• Social Enterprises

Market Strategy

• Wholesale – 90% of 1st year sales– Golden Grocer Natural Foods (CWE)– The Natural Way (Webster)– Whole Foods (Brentwood; T&C)

• Retail – 8% of 1st year sales– Local Farmers’ Markets

• Tower Grove• Clayton

– Special Events• Best of Missouri Market Place

• E-Commerce – 2% of 1st year sales

Operations

Product Line

Honey

Body Cream

Foot Balm

Shower Gel

Hand Lotion

Lip Balm

Candles

Bath Bar

Operations

Beekeeping“Urban beekeepers are so successful

because they treat their bees like pets.”Erin Forbes

EAS Certified Master Beekeeper

Financial Summary

Year 12012

% AnnualGrowth

Year 22013

% AnnualGrowth

Year 32014

% AnnualGrowth

Year42015

% AnnualGrowth

Year 52016

% AnnualGrowth

Revenue from Product Sales 16,761 0% 28,714 71% 46,489 62% 63,134 36% 85,562 36%

Direct Cost of Sales 21,047 0% 24,387 16% 28,715 18% 32,657 14% 38,167 17%

Gross Profit (4,286) 0% 4,327 201% 17,774 311% 30,477 71% 47,395 56%

Gross Margin -26% 15% 38% 48% 55%

Selling, General & Administrative Expense Salary Expense - Program Staff 17,500 0% 17,500 0% 26,250 50% 26,250 0% 35,000 33% All Other 14,989 0% 15,289 2% 16,986 11% 18,404 8% 20,508 11%

32,489 0% 32,789 1% 43,236 32% 44,654 3% 55,508 24%

SG&A as % of Revenue from Product Sales 194% 114% 93% 71% 65%

Other Operating Income In-Kind Contribution of Facilities from NCHI 9,600 9,600 9,600 9,600 9,600 (Offsetting costs included in CGS and SG&A)

Net Operating Income (Loss) (27,174) (18,862) (15,862) (4,577) 1,487

Grants and Contributions 55,000 10,000 15,000 5,000 0

Net Income (Loss) 27,826 (8,862) (862) 423 1,487

Net Cash Flow 17,067 (8,033) (811) 779 742

Financial SummaryYear 1 Year 2 Year 3 Year 4 Year 52012 2013 2014 2015 2016

Cash Flow from Operating ActivitiesNet Income 27,826 (8,862) (862) 423 1,487 In-Kind Contributions of Facilities from NCHI (9,600) (9,600) (9,600) (9,600) (9,600) Facility Cost - Production & Administrative 9,600 9,600 9,600 9,600 9,600 Depreciation Expense - 1,121 1,204 1,375 1,542

Cash Provided Before Changes in Operating Assets & Liabilities 27,826 (7,741) 342 1,797 3,029

Changes in Operating Assets & Liabilities Accounts Receivable (419) (718) (1,162) (1,578) (2,139) Inventories (126) (172) (258) (334) (435) Accounts Payable 419 573 859 1,114 1,450 Accrued Expenses 573 859 1,114 1,450 2,030

Net Cash Provided by (Used in) Operations 28,273 (7,199) 896 2,449 3,934

Cash Flow from Investing ActivitiesPurchase of Capital Equipment (11,206) (835) (1,707) (1,669) (3,193)

Net Cash Provided by (Used in) Investing Activities (11,206) (835) (1,707) (1,669) (3,193)

Cash Flow from Financing Activities

- - - - -

Net Cash Provided by (Used in) Financing Activities - - - - -

Net Increase (Decrease) in Cash 17,067 (8,033) (811) 779 742 Cash at Beginning of Year - 17,067 9,034 8,223 9,002

Cash at End of Year 17,067 9,034 8,223 9,002 9,744

Thank You