business idea create a thrift store. Focuses employing boys girls juvenile detention center. The profits store invested housing education workers, children maintain store. The assignment: Clearly explaining idea reader Then focus briefly highlighting aspects idea: 1.
Thrift store
The modern day society is more and more pressured by changes in the behavior of people, but also by larger changes at the greater social level. A notable change is as such represented by an increasing gap within the population. While the efforts are focused towards increasing social and economic equality, fact remains that the gap between the rich and the poor continues to be impressive. In such a setting, some people possess large amounts of products, which have to be disposed off, and others are in need of various products, but do not afford them. The thrift store comes to answer the needs of both population categories, by collecting goods and reselling them.
The new store to be opened would function on the principles of a thrift shop, in the meaning that it would retail used products, generally donated by the population. The products would target a wide array of population, including both people of limited means, as well as individuals interested in vintage products; given the sources of the products to be sold in the thrift shop, their prices would be set at minimum values, making the items accessible for a wide array of population. The profits of the store — namely the remains from revenues after operational costs are covered — would be donated to charitable activities.
Aside from this, another important dimension of the new thrift shop is represented by the fact that it will not collaborate with volunteers — as sales staffs — but would employ girls and boys out of juvenile correctional facilities. This feature allows for the reintegration of the troubled youth within the society and generates a double social advantage.
2. Entrepreneurial goals and context
The scope of the thrift shop is that of generating the two previously mentioned social benefits, namely the generation of charity funds and the support towards the social reintegration of the youth from correctional facilities. Aside from these, the shop also aims to redistribute the diverse products by collecting them from those who no longer need them and presenting them to those who need them. In addition to the social dimension of the thrift shop, it should also be remembered that this is business venture, and, it as such aims, to generate sufficient revenues to support itself (cover the costs), and also generate some profits. In other words, the facility reveals both social and business goals within the short- and long-term, with emphasis being placed on the long-term sustainability of the store.
A notable dimension of the thrift shop is represented by the financial operations and decisions to be made at the store. In this order of ideas, the store will not pay money to buy the items to be sold, as these would be donated by the population. The store will nevertheless have to create the infrastructure for the products to be donated in efficient conditions. For instance, these could be dropped off by the donors, or the donors could call the store and schedule a time for the items to be picked up by the staff at the store.
The revenues generated by the store would be used to cover for the costs of operating the shop, and the surplus — namely the profit — would be redirected towards charity activities. A notable difference between a traditional thrift shop and this one is that the current one employs and pays its staff, meaning as such that it would also encounter costs with the personnel; this would impact the final profitability of the store by increasing operational expenditures.
From another business standpoint, an important issue to be raised is represented by the markets addressed by the new thrift shop. In this order of ideas, the store would target the following tow categories of customers:
Families belonging to the low income category, who need the products sold in the shop on current basis and who will return to the store for their necessary items. These customers will of money in the store, based on the resources they have available at one point or the other, but will be current and loyal buyers.
The second category of targeted customers is represented by individuals in higher income groups — generally the medium income group — who cherish vintage products out of personal conviction, style and fashion trends, or simply because they seek to be more responsible consumers and turn to recycling and reuse of quality products. This category of buyers would be likely to spend more money in the store, would not be as loyal or as recurrent as the first category of buyers.
3. Unique attributes of the idea
As it has been mentioned throughout the previous sections, the new thrift store to be opened in the local neighborhood is characterized by the retail of donated products at low prices, and the usage of the profits for charity events. In a traditional setting, this is the very definition of a thrift shop. Nevertheless, for the current store, an element of novelty and uniqueness is introduced in the meaning that the thrift shop would and girls who had spent time in juvenile correctional facilities.
The employment of this category of population is not a completely new idea, as there are some businesses across the industries which employ previous detainees. The difference nevertheless is that few of these establishments focus on youth, and also that the thrift shops generally work with volunteers, rather than paid employees. The young men and women then would be paid minimum wages, aimed at teaching them financial responsibility and integrating them in a context of honest work and social reintegration. The final scope of the store remains that of any thrift store, namely the redistribution of goods and the collection of funds for charity, with the unique approach of providing social support to youth getting out of juvenile correctional facilities.
4. Similarities and differences from existing ideas
As it has been deduced from the previous sections, the new thrift store to be opened in the neighborhood is similar to other thrift shops, but it also reveals some differences. At this stage, it is useful to reveal these differences in a centralized manner; this scope is attained with the aid of the table below:
Similarities
Differences
– The merchandise sold in the store is donated by different people
– The products are sold at low prices, making them affordable to the financially challenged population
– The store covers for its own costs, and the surplus (the profit) is donated to charity organizations
– The store does not engage volunteers as sales staffs, but employs boys and girls out of correctional facilities to integrate them in the social life
– The store’s profits are decreased due to the new costs with the personnel
– The business challenges are enhanced by the need to manage the personnel
5. Antecedents of the idea
The current idea for the drift shop has been generated by the combination of two specific ideas, namely the need to integrate the youth coming out of juvenile correction facilities, and the need for thrift shops within the society. The element of novelty is nevertheless represented by the focus on young people coming out of juvenile institutions. Within the society then, several establishments exist which strive to reintegrate the previous detainees, but they are mostly focused on mature individuals. There is, as such, a shortage of programs aimed to reintegrate the youth within the society and to provide them with opportunities to rebuild their lives (Katzmann, 2002). Ultimately then, the new thrift store would be created on the combination of personal convictions for the need of youth reintegration, as well as the previous idea of detainees reintegration, and the need for thrift stores.
6. Key success and failure factors
The success of the new thrift store is essentially dependent on the ability of the store to actually identify the need to be served within the society and the ability to ensure that the respective need is served. Assuming that the need is adequately identified, the key success factors are represented by the ability of the store to meet its pre-established objectives. Specifically, some of the more notable factors essential for success and failure include the following:
The ability of the store to attract donations in products needed by its customers
The ability of the store to attract loyal and reliable clientele
The ability of the store to generate sufficient sales in order to attain its objectives of financial sustainability
The ability of the shop to adequately integrate and manage its staff from correctional juvenile facilities.
7. Opportunity recognition
The idea of opening and running the thrift store has been generated by the observation of numerous contextual and environmental elements, which would be answered with the opening of the new store. Some of the more notable examples in this sense include the following:
The existence of large volumes of products which are no longer required by families — especially in the above income group — but which are still usable items.
The needs of the population living below the medium income to gain more access to various products.
The increasingly common behavior of the customers to recycle products, rather than dispose of them and buy new ones; this behavior is the result of both financial responsibility, as well as an increasing concern towards environmental responsibility and sustainability (Olson, 2009).
The existence of troubled youth who, especially those with previous detentions in juvenile correction facilities, who find it difficult to become reintegrated in the society, due to the lack of interest or opportunities with which they are presented.
The ongoing existence of people living below means and the constant need for charity activities and funds.
Overall, the new thrift store to be opened is based on a clearly identified social need, and the store has the ability to serve the different social needs of the financially challenges population, as well as support the reintegration of the youth from juvenile correctional facilities.
References:
Hatten, T.S. (2011). Small business management: entrepreneurship and beyond. Cengage Learning.
Katzmann, G.S., (2002). Securing our children’s future: new approaches to juvenile justice and youth violence. Brookings Institution Press.
Longenecker, J.G.. Moore, C.W., Palich, L.E., Petty, W.J., (2006). Small business management: an entrepreneurial emphasis. Vol. 1. Cengage Learning.
Olson, G.E. (2010). Better green business: handbook for environmentally responsible and profitable business practices. Pearson Prentice Hall.
Schneider, C. (2012). The ultimate consignment and thrift store guide: an international guide to the world’s best consignment, thrifts, vintage and secondhand stores. iUniverse.
Taylor-Hough, D. (2011). Frugal living for dummies. John Wiley and Sons.
Wolff, E. (2004). Frommer’s New York City for free & dirt cheap. John Wiley and Sons.
