1. StopGap Inc. Business Plan
A presentation by Sam Amrein, Jorge Sosa, and Cassie Tomás
2. Agenda
StopGap Inc. Mission
Current Situation: Kansas, foster care youth, and StopGap Inc.
The Problem and the Opportunity
Project Objectives & Concept
Theory of Change
Business Model Canvas
Measuring Results
Scaling Strategy
Risks
The Team
Phase Implementation
Resource Requirements
Financial Plan
Options for Covering Deficit
3. Stop Gap Mission
To empower and engage foster children to take ownership of
their lives and move from dependence to independence.
4. ● 331 youth aged out of foster care in Kansas in 2014
● Only 227 youth were approved for the Kansas Tuition Waiver Program in 2014, despite the
726 total youth eligible in Kansas
Kansas City Region (2014):
● 191 youth were recorded as
accessing independent living
resources
● 80 of these youth received
independent living subsidies (room
& board)
The Current Situation: Kansas Resources
http://www.kansaslegalservices.org/node/1848/foster-children-and-aged-out-youth-kansas-receive-free-ids
SSIS Annual Report SFY 2014
Kansas Monthly Demographic Report SFY15
5. Current Law: Foster care youth age out when they
turn 18 or when they graduate from high
school/obtain their GED, depending on the state.
National Statistics (2015):
● More than 1 in 5 will become homeless after age 18
● Only 58% graduate from high school by age 19
● Within two years of being “aged out,” 1 in 4 is
involved in the criminal justice system
● By age 24, half of the aged-out population is
unemployed
Kansas Statistics (2013):
● High School Graduation Rates: state average ~75%,
foster care average ~45%
What happens when youth age out?
http://www.npr.org/templates/story/story.php?storyId=125594259
http://www.kansascity.com/news/business/article9612272.html#storylink=cpy
http://family.findlaw.com/foster-care/aging-out-of-foster-care.html
http://www.dfps.state.tx.us/adoption_and_foster_care/about_tare/faq/youth.asp
6. The Problem in Lawrence, KS
Adolescents age out of the foster care system before they are fully prepared for
independent living. They have had a lack of significant familial support and education
about the life skills necessary to live on their own.
● KVC and DCF offer the same services this venture will provide, but they have too many foster
care children and not enough time to effectively and thoroughly educate them they way
they need
● Contributing Factors: nowhere to go after aging out, lack of necessary life skills usually
gained through traditional family upbringings, lack of high school diploma
● Root Causes: broken foster care system, non-traditional upbringing
● Importance of the trickle down effect - if we don’t help these teens now, they could do
something bad later on to the detriment of society
7. By offering educational resources to teach current foster care youth and those who
have aged out, our venture can become a preventative measure for those youth who
have yet to age out.
● Our Vision: More adolescents aging out will have the opportunity to go to college, live in
their own home, have and keep a job, and live a successful, independent life.
● We believe college is the stepping stone to living a more successful life.
● We know what life skills are necessary and how to teach those to our target market,
through the previous experience of StopGap.
● Similar opportunities have been proven to work in other areas of Kansas (transitional living
facilities)
The Opportunity
8. Project Objectives for The Hub
Our team explored expansion of StopGap’s current program offerings in order
to reach more foster care youth currently and previously in the system. The
goals of this venture would be:
● To provide a common location in the form of a house
● To provide information and resources that better prepare these youth for living
independently, similar to StopGap’s Youth Empowerment Outreach Program
● To introduce educational classes and one-on-one advising in specific areas
● To create a foundation for a future transitional living facility in Lawrence, KS
This venture will allow StopGap to create awareness, validate the problem, and
acquire the resources needed to one day implement this future plan.
9. The Concept: The Hub
We will expand the current Youth Empowerment Outreach Program into a two-
bedroom house that provides a common location for foster care children ages 16 - 21
to learn. It will include necessary resources (pamphlets, educational classes, and one-
on-one advising) for these youth to learn life skills to live independently.
● Primary customer: foster care youth ages 16 - 21, preparing to or dealing with aging out of
the foster care system
● Our services gives these youth the necessary tools to be successful in life: resume building,
how to get a job, apply for college, get an apartment, personal finance, etc.
● Point of differentiation: located in Lawrence and focus on the success of each individual
10. It explains how the organization’s intended impact will actually happen and the
cause-and-effect logic by which organizational and financial resources will be
converted into the desired social results.
What is Theory of Change?
11. Theory of Change
Inputs: house,
volunteers’
time &
attention,
financial
resources Activities: classes, one-on-one
advising, Youth Empowerment
Outreach Program, fundraising,
grant writing
Outputs: educated
youth who have the
knowledge of
necessary life skills
and the desire to live
successful,
independent lives
Outcomes: More
adolescents aging out will
have the opportunity to go
to college, live in their own
home, have and keep a
job, and live a successful,
independent life.
Impact: happier,
healthier, more
productive lives
These ideas are based on research, although there are some leaps of faith.
This theory of change is focused on both local and systemic change.
12. A template for developing new business models. It is a visual chart that outlines key
business aspects of a new venture. These elements include:
● Value Proposition: value delivered to customer segments
● Customer Segments: who buys and benefits from the service
● Activities & Resources: key activities and resources needed for success
● Partnerships: who will help make this work
● Competitors: who else plays in the same space
● Macroeconomic Environment: macro changes that might affect the venture
● Sales & Marketing: plan for beneficiaries and payers
● Cost Structure: major cost drivers
● Revenue Streams: where is the money coming from; donations vs. earned income
What is a Business Model Canvas?
13.
14. Highlights of the Canvas
● Beneficiaries: youth ages 16-21 aging out of foster care system
● We will provide the necessary life skills to these adolescents in order for them to be
successful in life, which will include educational classes, one-on-one advising, and
the Youth Empowerment Outreach Program
● This venture will ideally be a two bedroom house, where one bedroom is an office
space and the other is the “classroom”
● Key partnerships/collaborations: Social worker(s), local business, local charities,
government entities (city, county, state)
15. Measuring Results
We will conduct monthly and yearly surveys with participants to measure the
effectiveness in achieving our mission, specifically how many have used our
resources to:
● get an apartment
● get a job
● apply and/or go to college
Milestones:
● Help at least 10 foster care youth in the first year of operation.
● Become one of top the top resources recommended to foster care youth
considering independent living in Lawrence, KS by the end of Year III.
● Find a source of sustainable earned income by Year III.
16. Scaling Strategy
Options for scaling this venture:
● Expand the organization to reach the maximum number of foster care youth
● Grow the resources of StopGap to one day create the transitional living facility
Considerations of scale:
● Balance the “speed of scaling” with program quality by conducting regular surveys
with participants
● Maximize value by providing quality support and assisting as many youth as we can
afford
17. Risks
Potential Pitfalls:
● Foster care teens may not be interested in what we have to offer
● Lack of management and business expertise could result in program failure and loss of
donors, state funding, and initial investment
● The Hub may not solve the problem
How to avoid these pitfalls:
● Plan ahead
● Develop a loyal donor/partner base
● Establish sustainability
18. Ideal Team for The Hub
Justine Burton and volunteers (eventually an executive director)
This team is ideal because they...
● are committed to and passionate about the mission
● have some experience with foster kids and the foster care system
● are connected to and a part of the Lawrence community
Team Improvements include...
● Business mindset: recruit unpaid interns from the KU business school
● Management: seek advice from local entrepreneurs
● Social Workers: bring in social workers from Lawrence network to volunteer time
As The Hub grows, StopGap will need to hire an executive director and bring in
additional volunteers.
19. Phase 1 (pre-launch, Year I, & Year II):
● Justine and volunteers will operate The Hub
● financed with donations, grants, and crowdsourcing campaign
Phase 2 (Year III):
● an executive director will be hired to run The Hub, along with existing volunteers
● financed with mostly grants (greatly increased by director) and some donations, as
well as another crowdsourcing campaign
Phase 3 (Year IV and beyond):
● volunteer base will grow to handle the growing customer base
● ideally financed by a sustainable earned income, but also grants and donations
Phase Implementation
20. Resource Requirements
Capital Requirements: $24,095 (startup costs) plus cash to cover projected outflow until
breakeven is reached
● Possible Capital Sources: grants, crowdsourcing, fundraising/donations from the
community
● Essential Assets: house, furniture, equipment, volunteers
We will attract these resources by
using the positive results from the
Youth Empowerment Outreach
Program to prove the future
effectiveness of this venture.
21. Financial Plan
Revenue mix:
● Contributed: donations (items and money), grants, crowdsourcing
● Earned: monthly participation fee of $5 per person
Costs of operating your model:
● Fixed Costs: Rent/mortgage, insurance, salaries
● Variable Costs: utilities, supplies, house upkeep, hourly wages
Sustainability: renewable grants, community involvement,
growing participation, additional earned income
opportunities?
22. Included Items in Expenditures:
● Computer Equipment: computer, printer, tv,
dvd player, student laptops
● Office Supplies: paper, ink, pencils, pens, dry
erase board and pens
● Furniture and Fixtures: corner couch, rug,
coffee table, desk, chair, couch, armchairs,
table, chairs, bookshelves, lamps, office phone
● Kitchen, Bathroom, and Cleaning Supplies:
dishes, cups, pans, pots, measuring stuff, dish
soap, etc.
Estimated $9,725 in donated items from
community members and local
businesses.
Projected Startup Costs for this Venture
24. There are a number of options for covering future deficits:
● find angel investors
● seek out corporate sponsors
● partner with other foster care educational organizations or transitional living
facilities
● fundraise and apply for grants more aggressively
● crowdsource for larger amounts
Options for Covering Future Income Deficit
