2.1 A Shift in Thinking
Introduction
For many who envision running a mobile market, the prospect of providing communities in need with access to fresh, healthy produce is the primary driver for their venture. However, as we have touched on already, creating a sustainable mobile market that achieves its social objectives can present a number of financial and logistical challenges for owners/operators. In this module, we’ll introduce you to The Farmers’ Truck Robin Hood Model as a novel approach that you can use to break-even/turn a profit, reduce risk, and achieve financial sustainability for your social enterprise.
Before we jump in, it’s important to understand what a social enterprise is in order to embrace the concept of revenue generation for the purpose of achieving a social objective.
What is a Social Enterprise?
A social enterprise is defined as a business that has specific social objectives that serve its primary purpose.
A social enterprise is not a legal designation, but rather a philosophical approach where founders are committed to principally using the profits of their enterprise to fund social programs.
As a social entrepreneur, you likely have a clear picture of your objectives and the impact you wish to make within your community. However, in order to maximize the social impact your venture can make, you will need to think about the ways to maximize both your financial and social profits. For many social entrepreneurs, the financial profit-generating mindset is not a natural one, but learning to strategize like a for-profit business in order to do good (which can entail a shift in mindset) may be required.
In this video, Fred describes the differences between nonprofit, for-profit, and social enterprises and illustrates the ways that social enterprises can employ value-add thinking to diversify their offerings and achieve financial stability (10 mins):
Activity: Now that you have listened to Fred talk about social enterprises, think about how this applies to your organization. Are you a non-profit organization selling something for the first time? Are you coming from a for-profit farm that is looking to increase sales?
Fred suggests thinking about the value-adds that a mobile market can pursue in order to help generate revenue. Some ideas he touched on include:
- Buying wholesale and reselling to restaurants or grocery stores
- Offering employee wellness programs to corporate sponsors
- Partnering with community kitchens for processing food (e.g.: pre-cut bags)
- Running fundraising events that focus on local food (e.g.: featuring a local chef)
- Repackaging and combing larger orders into smaller, manageable sizes (e.g.: a stew mix) for resale
- Accepting more forms of payment– Cash, Card, Digital payments, SNAP (SNAP matching grants), FMNP checks, Vegetable prescription programs via health care companies
- CSA pick up/ pre orders direct from grower
- Find investors to support market such as the People’s Community Market
Reflection:
Now that you have listened to Fred talk about social enterprises think about the kinds of activities your mobile market can do to generate revenue and your thoughts with the community.