Fair Trade Store


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Fair Trade Store

  1. 1. Business Plan<br />Fair Trade Store<br />Student Cooperative Supporting Fair Trade Practices Worldwide<br />Fred Sconberg, Presenting to:<br />Global Center for Social Entrepreneurship<br />University of the Pacific<br />Stockton, California<br />July 25, 2010<br />
  2. 2. Mission<br /><ul><li>Help small-scale artisans and food producers from developing countries earn an income, which is above the poverty line, by marketing their goods in Fair Trade Stores on college campuses across the United States.
  3. 3. Provide income for college students and their student organizations through the sale of Fair Trade products.
  4. 4. Educate a generation of American College Students on the Value of Fair Trade Principles</li></li></ul><li>Desired Outcomes<br /><ul><li>Increase annual income by $375,000to 500 ethnic crafters and 500 fair-trade producing farmers. This represents an increase of $375 annually to each producer.</li></ul> <br /><ul><li>Increase annual income to 165 students by $375,000,$2,250 per student, which amounts to $250 per month for 9 months.</li></ul> <br /><ul><li>Generate $62,500 per year in student controlled community development funds.</li></li></ul><li>Innovation<br /><ul><li>College students’ owned consumer cooperative
  5. 5. Purchase and sell ethnic crafts, garments and food
  6. 6. Produced in developing countries by people living below the poverty level
  7. 7. The direct purchase removes the importer and wholesaler
  8. 8. Increase income to the poor producer
  9. 9. College student’s needadditional income
  10. 10. College students have been the leaders in the fair trade movement
  11. 11. Educating the students on fair trade principles, having them promote fair trade on campus and in their communities and learning entrepreneurial skills</li></li></ul><li>Fair Trade Principles<br />Create Opportunities for Economically and Socially Marginalized Producers – <br />Development Transparent and Accountable Relationships – <br />Build Capacity – <br />Promote Fair Trade –<br />Pay Promptly and Fairly – <br />Support Safe and Empowering Working Conditions – <br />Ensure the Rights of Children –<br />Cultivate Environmental Stewardship –.<br />Respect Cultural Identity <br />
  12. 12. Value Proposition<br /> <br /><ul><li>Small-scale ethnic crafters, garment workers and farmers
  13. 13. Struggled to earn an income through their hard work
  14. 14. Market of U.S. consumers
  15. 15. Earn money to buy food, water, clothing, healthcare and education for their children and themselves
  16. 16. With these enhancements to their lives they can live a life of dignity</li></li></ul><li>Value Creation<br /><ul><li>Dignified life for the small-scale artisans and farmers
  17. 17. Capacity to buy water, food, clothing, sanitation, healthcare, and education
  18. 18. Students will have college jobs
  19. 19. Steady source of income for community development
  20. 20. The future of treating people and the land with dignity and respect will be well served by a generation of educated, compassionate leaders</li></li></ul><li>Clients and Beneficiaries<br />Beneficiaries <br />Poor Producers in Developing Countries <br />College Students <br />Recipient of Community Development Funds <br /> <br />Customers<br />College Students<br />Local Business<br />Retailers <br />Individuals<br />The University<br />
  21. 21. Environmental Enablers<br />Lack of Money<br />Limited Choices to Sell Products<br />Export Expense<br />Low Per-Piece Rate<br />Not Organized<br />Fair Trade Principles<br />
  22. 22. Potential Obstacles and Risks<br /><ul><li>Operational Risks
  23. 23. Managerial Risks
  24. 24. Financial Risks</li></li></ul><li>Strategy to Serve Market<br /><ul><li>Operating Fair Trade Stores on College and University campuses in the United States.
  25. 25. Owned and Operated Cooperative
  26. 26. The ethnic crafts and food purchased from producer in developing countries
  27. 27. Producers earn their way out of poverty
  28. 28. U. S. students earn income
  29. 29. Educate a generation of future leaders on the value of entrepreneurship and the power of the consumer dollar in eradicating poverty and sustaining our environment.</li></li></ul><li>Becoming Sustainable<br />The direct action is purchasing ethnic crafts, garments and food<br />Price high enough for the producer to earn her / his way out of poverty <br />The systems-changing social impact will come with scaling the organization. <br />As the Fair Trade Stores grow they will be able to purchase and sell more products, in turn increasing the income of more poor producers<br />Higher price per-piece<br />College students earns an income<br />
  30. 30. Sustainable Advantage<br /><ul><li>Millions of Small-scale Artisans and Farmers
  31. 31. 4300 Colleges and Universities in United States
  32. 32. 18.2 Million Students
  33. 33. Principles of Fair Trade benefit all people and the environment</li></li></ul><li>Cooperative Structure<br />
  34. 34. Management Structure<br />
  35. 35. Projected Income Statement<br />
  36. 36. Distribution of Income<br />
  37. 37. Scalability / Future Growth<br />Selection of Management Staff Aug 15 – Oct 15, 2010<br />Selection of Initial College Campus November 1, 2010<br />Selection of Initial 100 producers December 1, 2010<br />Develop Initial Store Design December 1, 2010<br />Locate and Train Students Nov 1 – Dec 31, 2010<br />Open First Fair Trade Store January 1, 2011<br />Goal to Have 10 Stores Open Dec 31, 2013<br />
  38. 38. Selling the Model<br />Source of Income for College Students<br />Source of Income for Campus Organizations<br />Education model for Teaching the Principles of Fair Trade<br />Education Model for Teaching social Enterprise and Social Entrepreneurial Skills<br />
  39. 39. Conclusion<br />Fair Trade Stores on college campuses would provide market opportunities, less complicated import-export mechanisms, and less expensive market access for producers of ethnic crafts and fair trade food products.<br />
  40. 40. A Call to Action<br />Fair Trade Stores on 10 College Campuses<br /> requires an investment of $200,000<br />Fair Trade Stores will repay the investment within 5 years<br />2% interest<br />
  41. 41. Fair Trade Store<br />Student Cooperative Supporting Fair Trade Practices Worldwide<br />Fred Sconberg<br />Global Center for Social Entrepreneurship<br />University of the Pacific<br />Stockton, California<br />July 25, 2010<br />