Scope of Work

03/24/20

Shoe Away Hunger

Background:

Shoe Away Hunger (SAH) collects new or used shoes in the form of donations, sorts them for disposal and resale, and uses the proceeds from resale to fund hunger relief programs and services. Many of the hunger relief programs are components of the Good in the ‘Hood organization, as is SAH. The company not only feeds the hungry with the generated revenue, but also provides quality, new/gently-used, affordable shoes for those in need. SAH prides itself on giving a quality shopping experience to people who need shoes, at an affordable price point. Nobody is turned away because they cannot afford shoes. Riipen has been engaged to determine how best to improve profitability and to develop scalability while considering relevant operational, financial, organizational and strategic aspects.

Project:

The student team will develop a business model using lean entrepreneurship principles (iterative development, testing, and assimilation of public feedback) to form its strategic recommendations. The primary questions to be addressed in the business model are:

1. How can this program improve profitability?

2. How can we develop scalability?

3. How can we successfully promote our brand and market share?

To answer these questions, the student team will conduct primary and secondary research to evaluate the market for SAH. It is anticipated that primary research will be significant, although insights from industry professionals will be critical in developing a nuanced and unique understanding of the market.

Initial research will focus on improving shoe donations from shoe manufacturers, shoe retailers, and community collections. Further research will focus on retail sales and wholesale opportunities. Consideration should be given to the capacity of operational procedures and facilities with respect to increased donations while developing longer-term financial models to ensure sustainable business practices.

At the end of the project, the student team will have:

1. Defined the state of the national and local market for shoe collections (new/gently-used) and for resale as a means of procuring revenue for hunger relief programs

2. Identify and recommend ways to operate the program more cost-effectively with greater revenue so that more net gains are available to purchase groceries to feed the hungry.

*Cost considerations should include: Do we need a bus? staffing? Space needs for storage/sorting shoes? Collections?

*Revenue considerations should include: Transactions/donations, sponsorships for operational costs, grant support, etc.

3. Identified the current limits and best avenues for scalability

4. Recommend the best means for moving this into other regions, keeping the majority (75% target) of the net revenue in the local community, with 25% or less coming back to the parent organization (Good in the 'Hood)

5. Developed a scalable model incorporating local resources to achieve local impact

Deliverables

Student associates will provide SAH with a summary report and presentation to support the project’s conclusions. Additional progress reports can be provided at the request of the SAH team. It is anticipated that the student team will use video conferencing to meet with the company founder every week or as needed during the term of engagement. The founder is available to meet more often as needed.