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A Proven Business

proven-business

We test and prove the success of micro-franchises before we ask a financially vulnerable family to become one of our operators.  During development, we identify the products, equipment and training required for success.  READ MORE

A financially vulnerable family can’t afford the risk of an untested business idea. Therefore, we rigorously test our micro-franchises – with real customers – to see if there is enough demand to provide a reliable income. We make sure the equipment and training we develop prepares them for the obstacles and opportunities.  We also evaluate warehousing and delivery so we know how many micro-franchises we need to start covering those costs.

We rely on the expertise of our founder, Beth Meadows. As a successful franchisor, she knows what is required in our design and testing.  Other advisors and experts provide technical and local market knowledge to ensure new micro-franchise will deliver on our goals.


Training & Support

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Supply Hope provides extensive training so operators can be successful immediately with their new micro-franchise – no matter their educational background.  And they continue to receive support and benefits designed to accompany them on their road from poverty.  READ MORE

Through partnerships with local non-profits and churches, we find responsible, hard-working individuals who earn less than $2 per day.  With practical curriculum at our dedicated training center, we teach them how to operate their new micro-franchise. With limited reading and writing skills, we need both classroom and hands-on practice to equip our new operators for success. Since many have never earned a degree and doubt they can be successful in business, we build up their confidence and courage.

Our initial training is only the beginning.  We provide on-going coaching and teach them how to grow their business with practical marketing tools.  They join a community of fellow operators who share best practices and encouragement.

As a member of our micro-franchise community, they also receive personal support and benefits designed to accompany them on their road from poverty.  This includes a personal development plan assessment by our in-house psychologist, free individual and family counseling, legal advice, financial savings education and much more.


Equipment & Inventory

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Micro-franchise operators receive equipment, supplies and marketing tools to run their business successfully.  They pay Supply Hope for their products after the products are sold.  Growth in their commissions is not dependent on whether they can afford more products.  READ MORE

Micro-franchising is like a “business in a box”. It is simple to learn, easy to manage, and can grow quickly.  In our testing we know exactly what equipment each store needs, and this is delivered on their opening day.  They also get the best supplies and marketing tools to help them grow their sales.

Because we want our micro-franchises to be owned by the most financially vulnerable families, they can’t usually obtain a loan to pay for their inventory.  And learning how to manage inventory is hard – a big reason why businesses started with micro-finance loans fail.  We design our micro-franchises so operators can focus on serving their customers and marketing their business instead of managing suppliers or fixing equipment.

Giving them products to sell BEFORE they have paid us may seem like a gamble.  But with our inventory control procedures, our losses on this approach are less than .5% of the value of the inventory we have sold.  By comparison, a good micro-finance loan loss rate is 2%.  We are willing to make this gamble, and our operators tell us this one of the most valuable aspects of our program.


Result: Steady, Reliable Income

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With quality products and services for their community, the right equipment and training, and on-going support, micro-franchise operators earn reliable income from sales commissions.  READ MORE

We train our micro-franchise operators to maintain daily reports on sales and product inventory.  We pay operators a commission from their sales money and count inventory remaining at their store. Supply Hope’s portion of the income is used to pay for the products and the costs of warehousing and delivery.

The income opportunity of each micro-franchise we develop may vary somewhat.  With many of our operators unemployed or earning less than $2 per day when they start our program, our first micro-franchise, Mercado Fresco is producing regular earnings of $5-$10/day.  Their earnings are invested right in their families – improving their homes and diets, and sending kids to school.  Since they know they can count on that income next week and next month, the future has new hope.


Sustainable Operations

sustainable

As we open more micro-franchises, our profits after paying commissions to the operators cover our operating costs (warehouse, delivery, administration), ensuring long term success.  READ MORE

Micro-franchising is successful because it can produce reliable income for a family month after month, year after year.  As we open more micro-franchises, we become more efficient in our warehousing, delivery and administration.  We make sure that when we have enough micro-franchises, our costs to operate the micro-franchise can be paid from profits after commissions.  This helps guarantee Supply Hope micro-franchises will be around for many years, providing vulnerable families with a reliable source of income.