August 26, 2017 at 1:55 pm #565
Hello! So here’s my idea. We get a few investors to buy an old hotel. The homeless residents live for free, however, everyone must help in some way. Some do the cooking, the dishes, the laundry. Some cab cut all of the residents hair. Basically become its own eco-system. Residents stay as long as they need, to regroup and get on their feet, or live out their lives in a safe place. Individual kitchens aren’t needed, and the conference rooms become dining halls, daycare centers, job placement and resume offices. Just an idea. 🙂August 26, 2017 at 6:46 pm #566
Thanks for your idea Candice! This is actually something that is really close to me and part of what we research with The Joshua Wave. After many years researching MLMs and Pyramid-style businesses, I came up with an idea similar to yours but also self-sustainable. I think we can share some of the knowledge since we’re both after altruistic businesses. The main problem we are trying to solve is homelessness and the second biggest problem is funding.
My business model functions like this:
You have two businesses. You create a real estate investment corporation. This business’ purpose is to find and flip large buildings for large-scale capital. In the coming years as Airbnb expands even more, I believe that hotel companies who do not innovate well are going to go bankrupt and will have to foreclose on their properties. We would purchase one of those buildings with the help of a real estate investor and begin the first steps to the charity.
We open a second business and file for 501(c)(3). This organization will operate within the foreclose business, employing the homeless to renovate the building for living and the people that work there would be able to live there as well.
Now once the first business becomes profitable by buying and flipping enough properties and is able to pay the investor back, the acting CEO (most likely myself) would be removed and all responsibilities would be automated/delegated down the chain of command. The CEO payment – roughly $100-120k/year would still remain in effect but would no longer be going to one person. Instead, we could use this money year-over-year to provide capital to the second business.
So the 501(c)(3) organization receives at least $100k in donations every year. This money would be used to:
- Pay the employees running the charity (operations)
- Funnel the homeless population through a strategic rehabilitation program with reward incentives. (credit to my wife here, but) It would be something like you go to AA and get a 6-month chip, you get a cell phone. So the rewards help you to rebuild your life based on general societal needs and re-integration techniques.
- The homeless members that are in the rehab program would be completely taken care of through housing (in the same building), working and receiving payment (like you mentioned in your idea), and food, mail, and legal help via partnerships.
- The members that make it to the top level of the rehabilitation program would be offered a job working at the organization to continue to better the organization and the way we help people. One thing I learned from my time with these people is that they know the needs better than the organizations so when they are willing to assist (and they love to), they provide agile feedback that allows the organization to know where and what to improve.
Now, of course in this situation $100k per year would not be enough to sustain a charity like this as it grows but the business model is recursive and allows for expansion to other properties so while one property is still in need of funding, another can be flipping buildings to support it. Most of the buildings that are sending the organization money would not be in the same area, they could be overseas. I’m happy to know what you think of this whole thing and if you’d like to join ventures at some point to potentially accelerate the goal. Orlando is actually where we’re planning a first trial run of this business model because the homeless population is around 2,000 in the city center alone and the organizations over there are quite packed as it is.
Looking forward to your reply 🙂
You must be logged in to reply to this topic.