Profits with a Purpose

I recently learned of an amazing and high-performing nonprofit business venture. Actually a bunch of ventures, all earning profits, which in turn create a stream of support for a job training program that works with former gang members in LA. Whether it's their baked goods or their tattoo removal service, these guys are in the business of doing good.

You might look at the Homeboy Industries website and immediately think of ten reasons why you can't do what they've done. Before you click away, though, here are a couple of key points to consider:

Their grant application for public funding in 2006 was in a crowded field and got a mediocre score. Their first business failed. Their real second chance came from a relatively small grant:
$160,000.

Also, note that Homeboy Industries has a really easy and compelling message: "Jobs not jail." Simple, yes. More importantly, hard to argue with the implied logic. And most importantly, easy for an "outsider" -- that is, a potential donor/supporter/customer to grasp without a lecture on economic development, schools and the criminal justice system or the cruel and complex funding realities behind them.

So, have a look! Since some of you are no doubt entertaining ideas and some of you may be operating businesses (small or large) to create funds for your program, I'd love to hear your reaction, thoughts, inspirations or doubts.

Here is an episode of Fresh Air featuring the priest who is behind the whole success story. And to get you started on your own successful journey, consult this easy to use workbook offering a guide to starting a social venture, including an easy and short list of what elements you'll need in your business plan.

all the best,
Liz O'Connor