Income-Generating Business Collects, Refurbishes & Distributes Used Computers
Triple Bottom Line Positively Impacts Business, Community & Environment.

OUTCOMES

• Business model: follow a business plan to:
• provide refurbished computer products and technical support services at low cost or no cost.
• sell refurbished computers and accessories and technical support services.
• generate a profit that can support the IT training mission and contribute to overall organizational sustainability.
• Training, internships and jobs: provide closely-supervised work, internships and training opportunities for clients that result in better employment outcomes for graduates.
• Responsible re-use:
• Refurbishment and re-use of computers from residents and businesses.
• solid waste reduction (re-use of 1 computer = environmental benefits of saving the pollution of 1 car for half a year.)
• Donor data safe and secure.
• Nothing illegally exported or landfilled.
• Build industry partnerships: taking donations from businesses creates a great avenue for building partnerships with industry.
• Community computer access: distribution of refurbished computers at low-cost or no-cost to low-income residents and local CBOs.

PROGRAM STRUCTURE

• Significant outreach to community residents and businesses to collect high volume of quality computers for refurbishing.
• Sorting, testing and refurbishment of computers by staff and interns.
• Trains paid interns to do technical repairs, providing valuable hands-on technical experience that improves hiring status after graduation.
• Distribute refurbished computers at low cost or no cost to local charitable organizations, and to participants in the technical training programs.
• Sell low cost refurbished computers at a retail outlet.
• Support low-income individuals who acquire or purchase refurbished computers with on-site technical support and information.
• Provide a warranty for every refurbished computer sold or distributed.
• Unusable components donated to recyclers; written assurance from recycler that nothing is illegally exported or landfilled.

PROGRAM ALTERNATIVES

• Re-use of refurbished computers only; or re-use and recycling of un-usable equipment, via partnership with a responsible recycler.
• Multiple avenues for sales, including web site, eBay store, retail store and direct marketing.
• Paid student internships, volunteer internships, or no internships at all.
• Re-use of computers without technical support (treats technical support as an adjunct business opportunity.)

CHALLENGES

For the organization

• Establishing appropriate board support and oversight for a social venture.
• Creating a strong business plan before program launch.
• Dedicating resources necessary to complete and evaluate market research.
• Raising funds for program development and launch; anticipating a ramp-up period during which the business will not turn a profit.
• Hire separate staff to develop and administer a program, without distracting from the organization’s primary mission.
• Following all California regulations governing the handling of electronic waste.
• Sufficient stream of computer donations from businesses and CBOs.

For the client

• Compliance with professional behavior and dress standards.
• Lack of confidence and/or work experience in the IT environment.
• Completion of technical training.
• High level of computer understanding (A+, MCDST, Network+ Certification.)

RESOURCES

• Social Venture Business Strategies for Reducing Poverty
• Social Enterprise Reporter
• Writing the Social Venture Business Plan (A Worksheet),NYU Stern School of Business, Assistant Professor Jeffrey Robinson.

ELEMENTS OF SUCCESS

• Mission-relevance: business must be relevant to organization’s mission, stakeholder/funder, community and client needs.
• Double bottom-line: metrics to measure measuring overall financial and social costs and benefits.
• Baseline funding: subsidy from funders for business start-up.
• Market research: assessment of local markets and competition.
• Strong business plan: details products/services, market size, key financials, milestones, staff responsibilities.
• Staff: Administrator (1FTE) whose primary responsibility is running this enterprise; trained, certified technicians (2 FTE) to supervise refurbishing work.
• Microsoft Authorized Refurbishers (MAR) status: allows business to load legal MS operating systems and office suite for $5 each.
• Donor Security: ability to legally and effectively wipe customer data from hard disk and produce official certification of completion.
• Marketing: strong outreach capability, particularly with businesses or government organizations with the potential for large streams of used computers for donation.
• Infrastructure: space to store, refurbish and test equipment (varies depending on refurbishing volume.)

Collaborations

• Corporations.
• Foundations.
• Government local.
• State
• Community college.
• Other nonprofits.
• Individuals.
• Local business.

Sources of Funding

Contributed

• Corporations.
• Foundations.
• Government.
• Local (City/County.)
• State.
• Individuals

Earning Income

• Fees.
• Other earned income.