Feedback Please - Starting a Non-Profit Org

naff123

Hi all so I've taken a bold step at the age of 25 to start my own company that will focus on being non-profit and impacting the community (Considering going CIC Investment)

I would love the feedback of this wonderful community.

The idea is to set up a social supermarket in my town as a way to ensure every single person can receive a meal for dinner without having to use a foodbank.

The idea is similar to Approvedfood.co.uk and take items that are either Short-dated or damaged items like tinned food etc and stop it from going to landfill and selling it on at 70p or less.

Luckily I've been donated a retail unit in my town and I am now fully insured on Public and Employee liability for a very very very cheap price.

I would love to hear some initial thoughts on my plans and maybe some questions sorry if I haven't elaborated enough with this I'm just very excited and optimistic about my future doing this.

Savvy_Sue

Well, I'm going to wish you luck, but then ask a few questions ...

What are you going to do with any food you haven't sold before it goes out of date, or anything which is too badly damaged to sell? Have you got a waste disposal contract sorted?

naff123

Savvy_Sue wrote: »

Well, I'm going to wish you luck, but then ask a few questions ...

What are you going to do with any food you haven't sold before it goes out of date, or anything which is too badly damaged to sell? Have you got a waste disposal contract sorted?

Hi sue

the bits that are too badly damaged to sell I'll give to family members or the homeless who need help.

Also the items I sell are past their best before date. I don't touch anything past their use by date at all its too dangerous

paddyrg

Sounds like you're in competition with the most cutthroat end of the market, discount supermarkets and pound shops. This may be difficult as the margins are nothing at all, so if you damage their shopper volume they may try to starve you out. They're incredibly well capitalised. They are also incredibly close to non-profit - people on job restart schemes (work for your dole schemes), sorry date goods bought by the million, long hours, tiny margins. At a pound an item, they can only make pennies, at 70p you can't even compete on range as that's below their wholesale costs.

Can you carry enough of a range to be worth going into? Those other shops sell a wide range whereas you're going to be limited to what you can get super-cheap. If you're floor to ceiling ugly cake and pastries one week, I made not try you for my regular fruit, veg, canned goods etc the next., so you have to keep the range.

To be honest, and please prove me wrong, I have strong reservations. Even nonprofits aren't there to make a loss, and once you factor in the overheads i think it's going to be incredibly hard not to. It's very very harsh at that end if the market, and you'll be poorly capitalised. Don't forget VAT will be a real thing for you quite quickly - if you turn over enough goods to pay your basic wage you'll certainly hit the threshold, so your 70p is really 58p, and many long-life items do attract VAT. If you make 10p on an item (far more than your competition), you still need to sell 100 items every hour just to cover your minimum wage, more if you want lights, water, business rates, waste disposal, deliveries, etc. Even if the majority of your goods are donated, you'll need some bought ones just to manage a range.

I hope it does work out for you though, good luck with it all

naff123

paddyrg wrote: »

Sounds like you're in competition with the most cutthroat end of the market, discount supermarkets and pound shops. This may be difficult as the margins are nothing at all, so if you damage their shopper volume they may try to starve you out. They're incredibly well capitalised. They are also incredibly close to non-profit - people on job restart schemes (work for your dole schemes), sorry date goods bought by the million, long hours, tiny margins. At a pound an item, they can only make pennies, at 70p you can't even compete on range as that's below their wholesale costs.

Can you carry enough of a range to be worth going into? Those other shops sell a wide range whereas you're going to be limited to what you can get super-cheap. If you're floor to ceiling ugly cake and pastries one week, I made not try you for my regular fruit, veg, canned goods etc the next., so you have to keep the range.

To be honest, and please prove me wrong, I have strong reservations. Even nonprofits aren't there to make a loss, and once you factor in the overheads i think it's going to be incredibly hard not to. It's very very harsh at that end if the market, and you'll be poorly capitalised. Don't forget VAT will be a real thing for you quite quickly - if you turn over enough goods to pay your basic wage you'll certainly hit the threshold, so your 70p is really 58p, and many long-life items do attract VAT. If you make 10p on an item (far more than your competition), you still need to sell 100 items every hour just to cover your minimum wage, more if you want lights, water, business rates, waste disposal, deliveries, etc. Even if the majority of your goods are donated, you'll need some bought ones just to manage a range.

I hope it does work out for you though, good luck with it all

I love a good challenge At the moment I have 0 overheads as I've been donated a shop been given a grant to test the idea and on top of this I've been donated a lock up for free as well

I get given half of my stock for free and then bolster the stock for a very small margin.

My latest order cost me 17.8p per unit all money made will go back into stock so I estimate if I sell all my items at the current mark up it will have a positive cash flow of 650 pounds. when I invested 220 on it.

Not too shabby I think.

I will keep you guys update my main competition is Approved Food.

bibirella

I love this idea! So much food is thrown away although it is still good!
I think it is important that you make your network grow and have a good cross-linking!!
Be patient!! Fingers crossed for this great idea!

Savvy_Sue

naff123 wrote: »

the bits that are too badly damaged to sell I'll give to family members or the homeless who need help.

Also the items I sell are past their best before date. I don't touch anything past their use by date at all its too dangerous

I'd just like to quietly suggest that giving food to homeless people isn't necessarily as easy as it sounds. Especially if it's damaged: can you truly guarantee its safety? Those who've been homeless for a while often have compromised immune systems. Also remember that they may well not have any cooking facilities, which limits the kinds of food which are useful.

If there are local groups already working in this area I'd strongly recommend talking to them, even if you're doing something completely different. I know food banks can be quite restrictive, but they have reasons for being so. Try FareShare Kent, Dover Soup Kitchen, and yes, the foodbanks in Dover.

motorguy

I like it.

I like the idea of being able to leverage the fact that you are non profit making to get a retail unit and a storage unit. I like the fact also that you could leverage that to get products from local butchers, vegetable shops, supermarkets, etc, at zero or little cost.

One thing i would ask though is how are you going to make sure that goes to the truly poor and needy in society as opposed to people just trying to pick up a bargain?

gingerbread_cat

It is possible: I don't know how do do links though. There are grants available.

kentonline.co.uk/dover/news/shop-launches-where-most-expensive-97447


that should have www. at the beginning but wont let me

naff123

That is my shop in the news actually!

I just completed a weeks trial, The results were incredible! We shifted over 1500 food items in 6 days! We have had national headlines and a donation of £1325 and as a result we've been able to sign up to a 12 month lease, with 2-3 month break clauses in the deal as well.

It has blown me away with the support and kind words from people!

Local News - Yorkshire Evening Post News
https://www.yorkshireeveningpost.co.uk/news/in-full



Nathaniel Richards sets up shop in Dover where most expensive item ...
https://www.kentonline.co.uk/dover/news/shop-launches-where-most-expensive-97447/

1.

Nathaniel Richards, founder of Nifties 'social supermarket' - audioBoom
https://audioboom.com/.../4722243-listen-nathaniel-richards-founder-of-nifties-social...



Shoppers clear shelves of bargain pop-up shop selling food for as little ...
https://www.mirror.co.uk › News › UK News › Shopping centres



Dover's Nifties budget shop to open, selling food from just 10p | Metro ...
metro.co.uk/2016/06/21/budget-shop-opens-selling-food-from-just-10p-5957886/


Parents open Nifties 10p budget food shop selling family essentials
goodtoknow



Couple set up not-for-profit 70p store after food bank hell
Daily Star



Budget shop opens selling food for 10p, makes Poundland look like Wait
https://www.studentmoneysaver.co.uk/.../budget-shop-opens-selling-food-for-10p-ma...



This shop is selling everything for 70p… but there is one major drawback
https://www.thesun.co.uk/.../this-shop-is-selling-everything-for-70p-but-there-is-one-...



The new store where your weekly shop could work out as just £3
https://www.goodhousekeeping.co.uk/.../the-new-shop-where-your-weekly-shop-could-wor...



Couple set up 70p store to rival Poundland after food bank hell ...
reportuk.org › news

paddyrg

Congratulations! Great news and publicity!