[SSN] For profit versus non-profit

If you are a regular reader of this blog, you will know that industry individuals got together on 7 June 2009 to start something new - or SSN, as it is now known. The aim of our gathering was to initiate projects that will create economic value for those less fortunate.

We had come to a point, where the group of individuals that were intrigued and inspired by the idea, were resolved on some key principals of the organisation. These were:

• Whatever we start needs to be simple, achievable and sustainable
• Need to do things that are for the greater good and will make a difference in our world
• We have to finish what we start
• We need to chip in and get involved - no bystanders

Another fundamental that was agreed was that SSN would be a non-profit organisation where any profit would be fed back into the community. We were all OK with this... until I received an email from Fran Anderson - one of the attendees of the inaugural prep session a week before the launch.

Fran's input was that SSN needn't be yet another charity organisation lost among copious others in our country. Fran recommended that while it remained committed to creating economic value for less fortunate people, it should generate a profit. Being the best of both worlds is what Fran was getting at, to appeal to peoples need to uplift their fellow man, while still making a sustainable profit for those involved.

Agreed upon

The SSN group met on 20 August and Fran's principal suggestion was agreed upon by everyone in the group.

The course of SSN will be steered toward a company or companies that are able to generate profit for the members involved whose purpose is to create economic value for others.

You might ask how this will work. Assume that, through SSN, member/person initiates a carwash and hires one employee to wash the cars, collect the money, service the customers etc. It is envisaged that after the car wash has paid the employees' salary and running costs, a percentage of the profits generated will be split in two. Theoretically, 50% of the profits will be paid to the SSN member who initiated the car wash and 50% will go to the running costs of SSN. Whatever is left over after covering SSN running costs will be reallocated to the SSN member/initiator.

For example, if the carwash makes R10 profit; R5 will go to the SSN initiator and R5 will go to SSN running costs. Should SSN running costs = R3; then R2 will go back to the SSN initiator. This is the general idea anyway.

The expectation is that the carwash employee then becomes an initiator and starts their own carwash or better yet a number of carwashes; and those employees in turn initiate their own carwashes. SSN will be somewhat of a ‘franchise' model that adds economic value at grass roots.
One of the other realisations the SSN group came to was that, while we were collectively set on economically uplifting the communities in which we operate and live, it was clear that there would be no individual consensus on the avenue of achieving this. Some people wanted to lobby government; others wanted to start charities, and more were eager to set up entrepreneurship initiatives.

Umbrella organisation

We soon agreed that an umbrella organisation (still to be named) would be established to attract, celebrate and propagate ideas that uplift society on a sustainable basis. SSN would be a part of this grouping.

Different individuals from varied backgrounds will meet on a quarterly basis with other like-minded individuals, to discuss initiatives that they have started, and receive input from the group.

So where does this leave the SSN concept that I began? The principals of the organisation that I will head remain the same. The only difference is that it will be a ‘for profit' venture as opposed to a non-profit organisation. All involved will make money relative to their effort and enterprise in uplifting those South Africans that need our assistance.

I am looking forward to working with people who can generate good ideas and come up with positive, pragmatic initiatives to up-skill our communities and create economic wealth for the less fortunate among us.

We have already had success: the first startup is a car wash business which has already been successfully initiated at VWV. This full-time car wash employee went from earning R300 per month as a gardener to earning R2500 on a sustainable basis at the car wash. The second idea under the SSN umbrella is an earthworm organic manure initiative that is based on a really innovative way to deal with restaurant waste.

Both these business ideas will be extrapolated and shared on this blog with the intention of the like-minded people out there who are willing to assist and propagate the ideas across the country.

It may be an awful lot to consider, but we want to keep this simple by doing what we need to do, to get things done. If you're keen to find out more, email me on .