Click here to view this full business plan
Emergency Shelters Business Plan
Executive Summary
Transitional Housing of Pittsburgh is a start-up not for profit social service agency serving the greater Pittsburgh area. The organization was founded by Amy Rand who has both the practical experience and the education to lead the organization. Amy is currently working on assembling a strong Board of Trustees which will be invaluable for the organization.
Services
Transitional Housing of Pittsburgh is an organization that provides transitional housing and life skill training for women. It offers assistance to women, frequently homeless, as they move from dependent, often abusive relationships into independent, self-sufficient lifestyles. Additionally, it assists clients in child reunification. This is particularly important as 80% of the clients have children but no custody.
This is the city’s only women-only facility and the only one with long-term transitional housing. All other shelters only offer 30 days or less of housing whereas Transitional Housing offers up to two years. On staff is a chemical dependency counselor, AIDS counselor, and a family reunification counselor to assist clients.
The facility provides clients within an eight-step program that teaches them necessary life skills. This collaborative approach to empowerment is the keystone to developing self-sufficiency in the clients. The steps include personal development, vocational training, substance abuse counseling, interpersonal skills building, community involvement, leisure activities, and independent living skills.
The Market
Transitional Housing has identified two distinct market segments of customers based on age; those who are under 30 and those who are 30 and over. The distinction is important because of the high percentage of clients with children, and those in the younger market segment having far younger children. The under 30 age group is growing annually at 9%, and the 30 and over age group growing at 8%. The two groups respectively have 165,454 and 158,745 potential clients. The overwhelming majority of clients come from lower socio-economic population groups. These segments can be difficult to communicate with, yet their use of Transitional Housing’s services would give them some profound benefits.
Management
Amy Rand is the driving force behind the organization and fills the Executive Director role. Amy earned a B.S. degree in Sociology from Case Western Reserve University and a Master’s in Non-for-Profit Management from the University of Pittsburgh. Additionally, she has several years of social service project management. While working as the program manager of Pennsylvania’s largest domestic abuse relief service provider, Amy developed a proactive empowerment program which has become the foundation for Transitional Housing’s collaborative approach to empowerment. During and since her tenure as program manager, Amy has developed a comprehensive network of personal and professional contacts with key community leaders. This will be instrumental in raising the profile of Transitional Housing within the community as well as having a significant impact on fundraising activities.
1.1 Mission
Transitional Housing’s mission is to provide women of Pittsburgh a safe transitional housing alternative, teach a multitude of skills to empower the women to self-sufficiency, and facilitate the possible reunification of clients with their children.
1.2 Keys to Success
- Build a strong, active Board of Trustees.
- Ensure that the offered services satisfy market needs.
- Design and implement strict financial controls and accountability.
1.3 Objectives
- Secure sufficient funding, both start up and operational.
- Create a women’s-only transitional housing facility that provides housing and a variety of empowering skills.
- Develop a strong Board of Trustees that can offer guidance, help with fundraising efforts, and oversee the smooth operation of the organization.
Organization Summary
Transitional Housing was founded as a Pittsburgh, PA based not for profit 501(c)(3) organization. Upon the Board of Trustees’ final approval, Amy Rand will be the Executive Director. The nonprofit will serve female clients in need of transitional housing and life skills training.
The goal of the organization is to provide interim housing and skill training so that clients become empowered, independent individuals. Transitional Housing’s services are unique in their female-only clientele, long-duration transitional housing, and comprehensive empowerment program. Transitional Housing will make a significant impact on the Pittsburgh community, in both short-term relief, and long-term skill development and empowerment.
Real property will take the form of the old Motel 6 building located in downtown Pittsburgh. This building has been identified as an ideal facility for Transitional Housing. The asking price for the building is $2 million with $100,000 down. The building will need some renovation, primarily fixing up the 65 different rooms. A donor has approached us willing to buy the building, with the intent of leasing it back to Transitional Housing long term, for the organization’s use.
2.1 Start-up Summary
Transitional Housing will require the following real property and equipment for the start-up phase.
- Assorted furniture, furnishings, and appliances for the different rooms.
- Seven desk/chairs, computers, and additional accessories.
- A computer server, two laser printers, broadband Internet connection.
- Fax machine and copier.
- Several file cabinets and shelving units.
- Paper shredder.
2.2 Legal Entity
Transitional Housing has been formed as a 501(c)(3) not for profit entity. The purpose of this organization is to offer women transitional housing as well as teach skills that allow these women to become self-sufficient, independent, and drug and alcohol free. Additionally Transitional Housing will, when applicable, assist women who attempt to gain custody of their children.
Funds for the organization will come from many sources including: silent auctions and other in house fund raising efforts, local government funds, foundation grants, corporate and individual donations, and money from the federal government. Amy Rand has in-depth experience with fundraising as well as grant writing and this will be instrumental in Transitional Housing’s search for funding.
Services
Transitional Housing of Pittsburgh is an organization that provides transitional housing and life skill training for women. It offers assistance to women, frequently homeless, as they move from dependent, often abusive relationships into independent, self-sufficient lifestyles. Additionally, it assists clients in child reunification. This is particularly important as 80% of the clients have children but no custody.
This is the city’s only women-only facility and the only one with long-term transitional housing. All other shelters only offer 30 days or less of housing whereas Transitional Housing offers up to two years. On staff is a chemical dependency counselor, AIDS counselor, and a family reunification counselor to assist clients.
Transitional Housing offers 65 rooms, each with its own kitchen facility to homeless women. Each client is allowed to stay for up to one year as long as they are clean and sober (random drug and alcohol testing determines this), and have no other place to go. Additionally, each client must be an active participant of the program:
Collaborative Approach to Empowering Individual. This program is an eight-step program to develop self-sufficient clients. The different elements of the program are:
- Personal development planning.
- Vocational development.
- Substance abuse prevention.
- Interpersonal skill development.
- Personal and spiritual development.
- Community involvement.
- Creative leisure activities/celebration.
- Independent living preparation/follow up.
Transitional Housing is a women-only facility. This is of significant value to the clients as it eliminates the possibility of sexual abuse from the opposite sex within the facility. This is Transitional Housing’s competitive edge, for more detail please refer to section 5.1.
Market Analysis Summary
Transitional Housing has identified two distinct market segments of customers based on age; those who are under 30 and those who are 30 and over. The distinction is important because of the high percentage of clients with children, and those in the younger market segment having far younger children. The under 30 age group is growing annually at 9%, and the 30 and over age group growing at 8%. The two groups respectively have 165,454 and 158,745 potential clients. The overwhelming majority of clients come from lower socio-economic population groups. These segments can be difficult to communicate with, yet their use of Transitional Housing’s services would give them some profound benefits. The good news is if the people are willing to accept help from Transitional Housing they are far more likely to be able to get out of the dire circumstances that they currently face.
The other service providers are temporary shelters that only allow stays of less than 30 days. These service providers are only housing shelters, they do not offer the in-depth self empowerment programs. Some alternative service providers take the form of religious service organizations that assist clients, but on a much smaller scale. The lack of true competition makes Transitional Housing the premier source of interim housing and life skill training. Other agencies would like to offer the comprehensive services that Transitional Housing offers but are unable to because of organizational design constraints or economic restraints. The following sections provide demographic detail regarding the target market.
4.1 Market Segmentation
Transitional Housing has segmented the market into two distinct categories: women under 30 years old and those 30 and older. This is a significant distinction since the children of the younger group will be younger as well. Some demographic information that is relevant to both groups:
- 95% are or were chemically dependent.
- 17% have undergraduate coursework.
- 85% are African-American.
- 80% have children (but generally no custody).
- 6% are H.I.V. positive- generally a result of their drug addiction.
- 7% are Hepatitis C positive- generally a result of their drug addiction.
- 22% were at one time prostitutes.
- 20% have been in prison.
4.2 Target Market Segment Strategy
Transitional Housing has chosen to target their services to these two market segments because they are the segments that are in the most need of the services. Because of a variety of factors including: time in prison, abusive relationships, alcohol and drug dependencies, and exposure/participation to prostitution, these women have nowhere else to go, no one to turn to. They are in desperate need of transitional housing as well as life skills to empower them to self sufficiency.
Transitional Housing has chosen to serve only women because women who are homeless are far more vulnerable than homeless men. They need more protection because of the increased risk of sexual abuse.
4.3 Service Providers Analysis
The services provided within this industry are typically broken down into two segments: transitional housing and life skills.
Housing- These services are provided by shelters that offer temporary shelters.
Life skills- Skills to help empower the individual are offered through daytime programs, but are never (at least in Pittsburgh) part of a transitional housing program where the skills training is part of a comprehensive program.
The following section, 4.3 offers an analysis of the alternative service providers.
4.3.1 Alternatives and Usage Patterns
Housing
Please note that the shelters are only housing and do not offer any type of life skills.
- Womenspace: This is a temporary shelter with an emphasis on women. The maximum stay is 30 days. It is first-come first-served with the prerequisite that the client does not have any other alternatives. This shelter has space for 25 clients with a central cooking area that is staffed. Children are not allowed.
- The 42nd Street Shelter: This is also a temporary shelter with a maximum of 10 clients, also with a central kitchen area. This shelter allows at most two children under the age of 18 to stay with the parent. This facility is typically full, it is difficult to get a room in it.
- The Refuge Shelter: This is a Catholic Church operated temporary shelter that has two main rooms with bunk beds that supports 16 people per male and female room.
Life skills
There are several service providers that teach these skills. They are typically religious based organizations or community based organizations. The courses are generally one hour long and span a few weeks. They are far less comprehensive than Transitional Housing’s and many people miss several sessions because they are taught over a longer period of time.