Gifts And Graces Business Plan Final

Gifts and Graces Fair Trade Foundation

OUR VISION Gifts and Graces will reduce poverty by transforming livelihood programs of 1000 NGOs to become selfsufficient. We are targetting 40 NGOs by 2012. OUR MISSION To improve the quality of life of marginalized members of society, by providing product development, technical training on enterprise management, and global market access to livelihood communities under the Gifts and Graces brand.

Without the capability building support from Gifts and Graces , livelihood programs are unable to grow and develop to self-sufficient enterprises. ---------------------------Without the marketing support from Gifts and Graces, livelihood programs are unable to access markets which will give them the volume required to earn significant income. For the beneficiaries of the livelihood programs, increased and sustained income from the livelihood enterprise means 1. having food on the table 2. sending their children to school 3. gaining pride and self-esteem

Addressing the Philippine poverty situation • 40% of the population live on $2 a day or less • 4000 NGOs registered Marginalized Segment

NGOs

G&G Partners

Urban poor

1000

6

Rural poor

500

3

Women

900

1

Street children

500

1

Former prison inmates

50

1

Youth

1000

1

Persons with disabilities

260

1

Migrant workers

40

1

Trafficked individuals

42

1

Indigenous groups

50

2

Artisans

3

1

Special Needs Individuals

20

1

1000 NGOs organize groups into livelihood programs • Involving small-scale production • Lack the systems, long term planning, entrepreneurial attitude • Lack financial and human resources needed

Characteristics

Needs

Handmade production. Production of 2-100 products/day

Improved production process for cost efficiency, standardization, quality

Annual sales of USD 2,000 50,000 spread unevenly

Market access

Dependent on grants

Self-sufficiency

5-25 beneficiaries involved

Increase outreach and penetration

Producer beneficiaries

Value Chain Alliance Partners Microfinance

NGO

Volunteers Products Corporate Clients

Consultancy Capacity Building & Training

Retail Clients Training Content & Delivery Partners

Gifts Graces Giftsand & Graces

Products & Services Wholesale Clients

Online Sales

Customers/Clients Funders

Advertising, PR, Branding

Critical Success Factors INCOME 1. Gifts and Graces will expand from corporate giveaways market to the wholesale and retail market 2. Gifts and Graces must maintain total customer satisfaction 1.) Quality products 2.) On-time delivery 3.) Value for money 3. Financial liquidity 4. Strong Gifts and Graces brand EXPENSES 1. Infrastructure 2. Operational efficiency 3. Strong alliances

Environmental Enablers & Obstacles CONSULTANCY/TRAINING Enablers (Opportunities)

Obstacles (Risks)

1. Livelihood programs all over the Philippines 2. Increased awareness of importance of community building 3. Desire of communities for empowerment

1. Possible resistance from NGOs 2. Competition 3. Lack of organizational entrepreneurial attitude

MARKET Enablers (Opportunities)

Obstacles (Risks)

1. Increased awareness and interest in fair trade 2. Increased desire to get involved 3. Interest in Philippinemade products

1. Global economic crisis 2. Competition 3. Lag between ramped up productivity and market demand

Competitive Analysis and Market Positioning  

Gifts and Graces (G&G) Provide product development, market access, enterprise management training Echo Store Provides some shelf space in a retail store, also provides product development

Mark et Share  

Benefits to Users

 

access to corporate clients, product development 2% input, network with other G&G partners

2%

Why Gifts and Graces is Better

retail store is visible resulting in high sales

Other Fair Trade organizations - CCA, SAFFY 6% communities access export market access to export market markets/May be accessed by organizations with export capabilities Non-Consumption Organization runs livelihood   beneficiaries learn new program on their own 90% skills Organization staff in charge of livelihood, usually involves skills training

 

Gifts and Graces pays full price for community's products. Corporate /distributor clients gives communities large bulk orders

Gifts and Graces works with NGO communities

G&G provides expertise on product development and market access, partnering with G&G means access to markets requiring large volumes

Financial Projections 2007 Beginning Cash

2008

2009

2010

2011

2012

$

5,918

$

36,928

$

26,338

$

43,109

$

25,891

$

77,763

$

42,803

$

77,872

$

104,167

$

125,000

$

166,667

$

250,000

$

38,333

$

55,000

$

125,000

Earned Income: Product Sales Services Total Earned Income

$

42,803

$

77,872

$

104,167

$

163,333

$

221,667

$

323,333

Costs of Product Sold

$

31,045

$

60,809

$

71,354

$

74,688

$

89,583

$

128,125

Payroll Related

$

12,223

$

15,896

$

28,739

$

31,613

$

34,775

$

38,252

Other

$

6,451

$

16,350

$

14,490

$

61,083

$

71,686

$

91,616

Total Expenses

$

51,120

$

95,138

$

117,083

$

170,134

$

201,045

$

263,493

Net Income

$

(8,317)

$

(17,266)

$

(12,917)

$

(6,801)

$

20,622

$

59,841

$

1,563

$

41,667

$

$

50,000

Expenses:

Investment Activity Cash used for Purchases

$

-

$

-

-

Cash from Grants/Investments/Fundraising

$

39,327

$

6,675

$

31,250

$

31,250

$

31,250

$

10,417

Ending Cash

$

36,928

$

26,338

$

43,109

$

25,891

$

77,763

$

98,020

Cash Flow $110

d n a s u o h T

$90 $70 $50 $30 $10 $(10)2006

2007

2008

2009

2010

2011

$(30) With Grant

Without Grant

2012

2013

Metrics Dashboard Business Metrics 2009

2010

2011

2012

104,167

125,000

166,667

250,000

Operational sustainability

91%

98%

112%

124%

Financial sustainability

88%

96%

110%

122%

Increase in sales

Social Impact Metrics 2009

2010

2011

2012

Number of partner communities

20

24

30

38

Number of producer beneficiaries

500

630

750

985

15

20

25

Production Output % increase

Management Team & Organization Hiring Needs

FAMILIES AND CHILDREN FOR EMPOWERMENT AND DEVELOPMENT FOUNDATION INC. August 12, 2009 THE SELECTION PANEL Asia 21 Public Service Award Warm greetings from FCED Foundation! I have the honor to formally express our support for the nomination of Gifts and Graces Fair Trade Foundation, Inc. for the Asia 21 2009 Public Service Award. Gifts and Graces has been a major partner of FCED Foundation, Inc. for two years now in providing livelihood support to about 80 urban poor families distributed in 10 barangays in Paco and Pandacan in the city of Manila. The assistance provided by Gifts and Graces to FCED Foundation and to its program beneficiaries has brought significant improvements in the lives of these families who belong to urban poorest of the poor and do not have a regular source of income. Their earnings from their production has enabled them to provide for their basic needs, with a significant percentage being able to send their children to school. At the same time, Gifts and Graces also assist in providing training and seminars to program beneficiaries to help them become self-sustaining. With the continued support of Gifts and Graces, we believe that FCED will be able to reach out to more of our families and their children living in the slum areas and help them to rebuild their dreams and their lives. Thank you so much and we wish you success in your programs. Ms. Teresita L. Silva President/Executive Director