Launch Local Business Builders Institute

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Executive Summary

Launch Local Business Builders Institute is a nonprofit in New Mexico that helps adults who are out of work, or underemployed, decide whether starting a business is right for them and, when it is, start one the smart way. Our free 12-week evening course, one-on-one business coaching, legal and licensing clinic, small launch grants and a Launch Lab with computers and a product studio take participants from an idea to a real, legal, first-sales business, and our coaches stay with each participant for a year afterward. Just as important, we are honest: for some people the best result of our program is a clear decision to wait, to build the idea on the side or to take a job.

When work disappears, many people already have skills and ideas that could earn money: a cook, a seamstress, a mechanic, a hair stylist, a drone pilot, a bookkeeper, a handyman, a translator. What they lack is a map. They do not know how to test an idea cheaply, price it, get a license, keep the books, pay self-employment taxes or find a first customer. They worry about how self-employment will affect unemployment benefits, health coverage and other help. Some are targeted by scams that promise easy income for an up-front fee. Banks rarely lend to a new business with no track record, and free advice is scattered across many offices.

With this grant we will enroll about 72 adults in Year 1 in three cohorts of about 24. We expect about 61 to complete the course. Each participant writes a simple business plan, tests the idea with real customers, and is coached through licensing, a bank account, bookkeeping and a launch plan. About 30 participants will pitch for launch grants averaging $1,500, paid directly to vendors for things such as equipment, licenses or inventory. Our goal is that about 34 participants have launched a business within 12 months. We do not promise that any business will succeed, and we do not lend money. We connect participants to community lenders when they are ready.

Our Year 1 budget is about $418,500, growing to about $608,500 by Year 5 as we add coaches and a second small business navigator and serve about 149 adults a year. Each year's budget is planned to balance, with a small surplus each year. We have 5 paid staff in Year 1 and 7 by Year 4. State, workforce board and small business technical assistance contracts, business and bank sponsors and donors add steady support, so grants fall from about 77% of our income in Year 1 to about 57% in Year 5.

We are asking the Rio Grande Opportunity Fund for $80,000 for one Business Coach, launch grants, participant stipends and a legal and licensing clinic. Contracts, sponsors, other grants and donors cover the rest, so this grant is one part of a shared funding plan.

I am Ramona Chavez, the Executive Director, and I started my first business after losing my job. The numbers in this proposal are estimates based on the assumptions listed at the end, not promises.

Company Description

Launch Local Business Builders Institute is a nonprofit organization in New Mexico. We are a 501(c)(3) public charity (or a program of one, through a fiscal sponsor), governed by a volunteer board of directors. We will provide our IRS determination letter, board list and most recent financial statements with this proposal.

Our mission. To help adults who are out of work turn their skills and ideas into sound, legal, sustainable businesses, or into a wiser next step.

What we believe. Entrepreneurship can be a path to income, independence and dignity, and it is not right for everyone. A good program tells the truth about the risks, helps people test an idea before they invest, and treats a decision to wait or to take a job as a success. Adults bring skills, resilience and experience that are worth building on. Businesses owned by people from every community strengthen the whole community. Real help is practical: licenses, taxes, bookkeeping, pricing and customers, not slogans.

How we started. Launch Local began when a retired small business banker, a former Small Business Development Center advisor and a church job club leader noticed that many of the people who came to the job club had a skill they could sell, but did not know where to start. They set up an evening class in a church hall, using borrowed laptops and volunteer coaches. In two years, 58 adults went through the class, 47 completed it, and 29 launched a business, a few full-time and most part-time. Others decided to wait or took jobs, and said the class helped them make that choice with their eyes open. Community lenders, the state's small business office and the workforce board asked whether we could offer the course regularly. This proposal asks for support to build a staffed institute.

What we offer:
- A 12-week business course. Held two evenings a week with a meal and childcare, in English and Spanish. Topics include testing an idea with real customers, understanding costs and setting prices, marketing and sales, using social media and a simple website, bookkeeping, taxes for self-employed people, legal structures, licenses and permits, insurance, credit and funding, and managing time and stress.
- One-on-one coaching. A Business Coach and volunteer mentors help each participant refine their plan, set goals and solve problems, during the course and for a year afterward.
- A legal and licensing clinic. An attorney and a Small Business Navigator help participants choose a structure, register the business, get an employer identification number, a sales tax permit and local and state licenses, and understand rules for food, home-based and professional businesses.
- Launch grants. Participants who complete the course may pitch to a panel of business owners for a launch grant, averaging $1,500, which is paid directly to vendors for equipment, licenses, inventory or marketing, and never as cash.
- The Launch Lab. A shared space with computers, printers, a product photo and video studio and basic tools for making samples, open to participants during and after the course.
- Pop-up market days. Twice a year, participants sell to the public at a market we organize, which is a low-risk way to test an idea and get first sales.
- Connections to funding. Help preparing for loans from community development lenders and microlenders, and other funding sources, when participants are ready. We do not lend money.
- Peer circles. Monthly gatherings for participants and graduates to share what works.

What we do not do. We do not lend money. We do not promise that any business will succeed or earn a particular income. We do not promote multilevel marketing, franchises or any opportunity that charges an up-front fee, and we teach participants how to spot them. We do not give legal, tax or financial advice beyond education: we connect participants to licensed professionals.

How we are run. A seven-member volunteer board of directors oversees the organization and approves the budget each year. The board includes a community bank officer, a small business owner, an attorney, an accountant, a graduate of our pilot class, a workforce board representative and a certified public accountant. The Executive Director manages the organization and partnerships, the Program Director leads the course, and an outside accountant reviews our books every year.

Where things stand today. The state's small business office, the workforce board, a community development lender and two banks have signed letters of support, and 25 volunteer mentors have signed up. We have a letter of intent for a 4,500 square foot space with a classroom and a Launch Lab near a bus line. Before we begin, an attorney will review our lease, launch grant rules and participant and privacy policies.

Problem & Opportunity

Why this program is needed.

Starting a business is one of the few ways many people can create their own income after losing a job, especially in places where jobs are scarce or hiring is slow. In New Mexico, many residents work for themselves in some way, and small businesses employ a large share of the state's workers. Yet people who are unemployed or underemployed face steep obstacles to turning a skill into a business: no startup funds, no track record, no business network and no one to ask.

The gaps we see:
1. No map. Many people do not know the steps: whether the idea has customers, how to price, which license is required, whether to form a company, how to keep records and how to pay taxes. Mistakes can be costly.
2. Scams and bad advice. People who are out of work are targeted by schemes that promise easy money for an up-front fee, such as multilevel marketing, fake business opportunities and overpriced courses.
3. No startup money. A few hundred or a few thousand dollars can make the difference between a business that starts and one that does not. Banks rarely lend to a new business with no history or collateral.
4. Fear about benefits. Many people worry about how self-employment income will affect unemployment benefits, food assistance, health coverage and housing help. Some states have a Self-Employment Assistance program that lets eligible unemployed workers start a business while receiving benefits, and people often do not know whether theirs does. Rules differ, so we help participants ask the right agencies.
5. Licensing and legal hurdles. Home-based and food businesses, trades and personal services often require licenses, inspections or insurance. Many people operate without them, and risk fines.
6. Skills gaps. Many people have never kept books, made a budget for a business, taken payments or used social media to find customers.
7. Isolation. Starting a business alone is hard. Entrepreneurs who have peers and mentors are more likely to keep going.
8. Unequal access. Women, people of color, immigrants, rural residents and people with disabilities have historically had less access to capital and networks, and many are overrepresented among the unemployed. Programs need to reach them.

What the evidence says. Training and coaching can help some new business owners avoid early mistakes and set realistic goals, and programs that combine education, coaching and access to small amounts of capital tend to be more helpful than education alone. At the same time, many new businesses do not survive, and self-employment is not right for everyone. We will report our own results honestly, including how many participants decide to take a job or to wait.

How we know people want this. In our pilot, 58 people enrolled, 47 completed, 29 launched a business and the rest made a decision to wait or take a job. We turned away more than 120 people who wanted to join. The workforce board and the state's small business office told us they have no program like this for unemployed adults.

How we will show the need. Before we submit this proposal, we will add the unemployment and underemployment rates in our service area from the U.S. Bureau of Labor Statistics and the Census Bureau, the share of workers who are self-employed, the number of businesses owned by women and people of color from the Census Bureau's Annual Business Survey, the number of people on the workforce board's waiting list and our own waiting list. We will also confirm whether New Mexico has a Self-Employment Assistance program.

Who benefits first. Adults 18 and older in our service area who are unemployed or underemployed, especially laid-off workers, long-term unemployed adults, women, people of color, immigrants, veterans, people with disabilities and people in rural areas, who have a skill or idea they want to test as a business.

Products & Services

What the grant will pay for and what we will do.

1. Recruit and screen honestly. We recruit through the workforce board's career centers, libraries, churches, community colleges, veterans' groups and word of mouth. Applicants attend an information session where we explain the risks of starting a business, how much time it takes, how it may affect benefits and what we offer. Applicants complete a short application and interview. We look for commitment, a skill or idea and willingness to test it, not for a business plan or capital. About 24 adults join each cohort, with three cohorts in Year 1.

2. Teach a 12-week course. The course meets two evenings a week for about 3 hours, with a meal and childcare, in English and Spanish. Each week combines a short lesson, a hands-on exercise and a homework step toward a real milestone:
- Weeks 1 to 3: Your idea and your customers. Skills inventory, idea testing, talking to at least 15 potential customers.
- Weeks 4 to 6: The numbers. Costs, pricing, a break-even point and a simple cash flow, and a first look at how self-employment taxes work.
- Weeks 7 to 9: Getting set up. Legal structures, licenses and permits, insurance, a business bank account and bookkeeping.
- Weeks 10 to 12: Getting customers. Marketing, a simple online presence, selling, a first sale at a pop-up market and a final pitch.
Each participant ends with a simple business plan, a launch checklist and a decision: launch now, build part-time, wait or take a job.

3. Coach one on one. The Business Coach meets each participant at least three times during the course and monthly for 12 months after. Volunteer mentors with business experience offer another set of eyes. Coaching is practical: pricing, a first customer, a license, a spreadsheet, a pitch.

4. Run the legal and licensing clinic. Each month, an attorney and our Small Business Navigator hold clinics where participants can ask about legal structure, registering a business, an employer identification number, a sales tax permit, local and state licenses, home-based business rules, food business and health department requirements, insurance and contracts. The attorney gives general legal education, and participants who need legal advice are referred to licensed attorneys.

5. Award launch grants. Participants who complete the course and a business plan may pitch to a panel of business owners. About 30 grants averaging $1,500 are awarded in Year 1, with a maximum of $2,500. Grants are paid directly to vendors for items in the participant's launch plan, such as equipment, licenses, inventory, insurance or a website, never as cash.

6. Open the Launch Lab. Participants use computers, printers, a product photo and video studio and basic tools for making samples. The lab is open evenings and some weekends with a staff member present.

7. Host pop-up markets. Twice a year, participants sell at a public market with canopies and a card reader provided, which gives them real customers and real feedback.

8. Prepare for funding. The Small Business Navigator helps participants understand credit and loan options, prepares them to apply to community lenders and microlenders and refers them to free help for taxes. We do not lend money.

9. Support for a year. Monthly peer circles, a check-in at 3, 6 and 12 months, bookkeeping help and referrals to the small business development center and other partners.

How we will measure results. We track applications, enrollment, attendance, completion, the decision each participant makes at the end of the course, businesses launched, first sales, licenses obtained, business bank accounts opened, revenue and income reported by participants (with their consent), jobs taken, and whether businesses are still operating at 12 months. We ask every participant and mentor for feedback. We report results by gender, race and background so that we can find and fix gaps.

Our Year 1 goals:
- About 72 adults enroll in three cohorts, with at least 85% completing the course, about 61 completers.
- At least 90% of completers finish a business plan and decide on a next step.
- About 30 completers receive launch grants.
- At least 55% of completers have launched a business within 12 months, about 34.
- At least 80% of those who launch have the required licenses and a business bank account.
- At least 70% of businesses launched are still operating at 12 months.
- At least 90% of participants say they would recommend the program.
These are goals, and we will report our real results to the Fund, including where we fall short. We do not promise that any business will succeed or that any participant will earn a particular income.

Market Analysis

Who we serve and how many.

The people. Adults 18 and older who live in our service area and are unemployed or underemployed, and who have a skill or an idea they want to test as a business. We welcome everyone, whatever their education, income or past, and we reach out especially to laid-off workers, long-term unemployed adults, women, people of color, immigrants and people with limited English, veterans, people with disabilities, older workers and people in rural parts of the area. Participants must be authorized to work in the United States, as lenders and funders require.

Where we work. Our classroom and Launch Lab are in a leased space near a bus line. Information sessions are held in libraries, churches and career centers around the region, and some coaching is available by phone and video for people in rural areas.

How many we will reach:
- Year 1: about 72 adults in three cohorts, about 61 completers, about 30 launch grants and about 34 businesses launched within 12 months.
- Year 2: about 86 adults in four cohorts, about 73 completers, about 34 launch grants and about 40 businesses launched.
- Year 3: about 104 adults, with a second Business Coach, about 88 completers, about 40 launch grants and about 48 businesses launched.
- Year 4: about 124 adults, with a second Small Business Navigator, about 105 completers, about 46 launch grants and about 58 businesses launched.
- Year 5: about 149 adults, about 127 completers, about 52 launch grants and about 70 businesses launched.
Over five years we expect to enroll about 535 adults and about 450 to complete the course.

Who else benefits:
- Families. A business that earns even a modest income can help a household, and children see a parent build something.
- Customers. New local businesses meet needs that larger businesses do not.
- Employers. Some participants decide to take jobs, and arrive better prepared. Some businesses grow and hire.
- Neighborhoods. Locally owned businesses keep money in the community and add to its character.
- The state and the workforce system. Participants who find work or start businesses leave unemployment and add to the tax base, though we do not promise specific savings.

How we will size the need before we submit. We will add the unemployment and underemployment rates in our area, the share of workers who are self-employed, the number of businesses owned by women and people of color, the number of people on the workforce board's waiting list and our own waiting list. These come from the U.S. Bureau of Labor Statistics, the Census Bureau, the New Mexico Department of Workforce Solutions and the state's small business office.

Competitive Landscape

Other help people can get, and how we fit.

- Small Business Development Centers and SCORE. They offer excellent free or low-cost advice and counseling to people starting and running businesses, and are our closest partners. Many programs are drop-in or one-on-one, and are not designed for adults who are unemployed and need a structured course, a meal, childcare, a stipend and a small grant. We refer participants to them and invite their advisors to serve as mentors.
- Community college business courses. They offer valuable classes and credentials, often during the day and for a fee. Our program is free, in the evening and focused on starting a real business now.
- Online courses and videos. They are flexible and can teach concepts, but participants often lack someone to ask, a peer group, a license plan or a first customer. Our program is in person and personal.
- Community development financial institutions and microlenders. They provide loans and technical assistance to people who may not qualify at banks. We prepare participants for their loan processes and refer them. We do not compete for borrowers or lend.
- The workforce board and job centers. They help people find jobs and fund job training. Many do not support self-employment. We work with them to serve people who want to start a business and to make sure participants understand benefits rules.
- Business incubators and accelerators. They serve entrepreneurs with higher-growth ideas, usually with more experience. We serve adults starting small, local, sole proprietor businesses.
- Multilevel marketing and business opportunity sellers. They promise easy income for an up-front fee. We teach participants to check claims, read fine print and find out what typical participants really earn.

The gap we fill. In our region, no program combines a free, structured, evening business course for unemployed adults, one-on-one coaching for a year, a legal and licensing clinic, small launch grants paid to vendors, a Launch Lab and market days, and honest guidance about the risks and benefits rules.

Our partners:
- The state's small business office, the Small Business Development Center and SCORE, which provide advisors, mentors and referrals.
- The local workforce development board and its career centers, which refer participants and may fund contracts.
- A community development lender and two banks, which provide loan preparation, speakers and sponsorship.
- A legal aid organization and a law firm, which provide the legal and licensing clinic.
- Libraries, churches, a veterans' group and immigrant service organizations, which help recruit.
- The city's economic development office, which helps with permits and market days.

Marketing & Sales Strategy

How participants, mentors and supporters will find us and how we keep them engaged.

Reaching participants:
- The workforce board's career centers. Career advisors refer people who are interested in self-employment.
- Libraries, churches and community colleges. Staff and flyers tell people about information sessions.
- Community partners. Veterans' groups, immigrant and women's organizations, farmers markets and small business associations share information.
- Graduates. Participants who launched businesses are our best recruiters, and they speak at information sessions and market days, with their permission.
- A simple website and a text number in English and Spanish, with start dates and an easy way to sign up.
- Social media and local radio and newspapers, featuring local businesses started by participants.
- Market days. Twice a year, the public can meet participants and try their products and services.

Making it easy to join:
- Information sessions are held in the evening and on Saturdays, with a meal and childcare.
- The course is in the evening, so people who work part-time can attend.
- The course is free, and we tell applicants up front about the schedule, the stipend, the time it takes and the risks.
- We do not require a plan, savings or experience to apply, and we help applicants with the application.
- We explain how self-employment may affect unemployment benefits and other help, and we help participants ask the right agencies before they act.

Keeping participants engaged:
- Hands-on work every week, such as talking to customers, building a price list or making a first sale.
- Small cohorts that form a peer group, and monthly peer circles after the course.
- If a participant misses two classes, the Program Coordinator calls the same week to solve the problem.
- A goal-setting conversation in week one and progress reviews every three weeks.

Reaching mentors and supporters:
- The Executive Director and Business Coach recruit mentors from the Small Business Development Center, SCORE, banks and local business associations.
- Mentors receive a short orientation, a simple guide and a thank-you.
- Business owners and banks are invited to sponsor a launch grant, a cohort or a market day. We share results twice a year with funders and partners as totals.

Outreach budget. Mentor engagement, pitch nights and market days are about $10,000 a year in Year 1, growing about 8% a year. The sign, outreach brochures and website are paid for once from startup money ($3,000).

Operations Plan

How the program will be carried out.

Timeline for Year 1:
- Months 1 to 3: Attorney review of the lease, launch grant rules and participant and privacy policies, sign the lease, prepare the classroom and Launch Lab, hire the Program Director, the Business Coach and the Small Business Navigator, buy equipment, recruit mentors and sign the legal clinic agreement.
- Month 4: Staff and mentor training, curriculum finalized with the Small Business Development Center, information sessions and recruiting for Cohort 1.
- Months 5 to 7: Cohort 1 runs, with a first pop-up market and a pitch night. Recruit Cohort 2.
- Months 8 to 10: Cohort 2 runs. First launch grants awarded. First 3-month check-ins with Cohort 1.
- Months 11 and 12: Cohort 3 runs. Year-end review of results, a report to funders and planning for Year 2.

Space. A leased space of about 4,500 square feet near a bus line, with a classroom for 28, a Launch Lab, a private coaching room, a small office and accessible restrooms. Training and Launch Lab space and utilities are about $30,000 a year in Year 1. Paint, flooring, lighting and an accessible, private coaching room are a one-time cost of $8,000, with a deposit and first month of rent of $6,000.

Equipment. We buy about $28,000 of equipment once at the start: sixteen laptops and a charging cart ($9,500), printers, a label and packaging station, and a heat press and sealer ($6,000), a product photo and video studio kit ($3,500), classroom and meeting room furniture, a projector and whiteboards ($7,000) and market day displays ($2,000). After Year 1, we set aside about $3,000 to $5,000 a year to replace and add equipment. Launch Lab supplies and equipment upkeep are about $10,000 a year in Year 1.

Staffing. In Year 1: an Executive Director, a Program Director and Lead Instructor, a Business Coach, a Small Business Navigator for licensing and financing and a part-time Program Coordinator. A second Business Coach joins in Year 3 and a second Navigator in Year 4. About 25 volunteer mentors help in Year 1. Instructors and coaches have small business experience and training in coaching adult learners.

Launch grant controls. Launch grants are awarded by a panel of business owners using a written rubric, and the amount is capped at $2,500. A grant is tied to a launch plan, and is paid directly to vendors or agencies for the items in the plan, never as cash to a participant. Participants must provide invoices. Each payment is approved by the Executive Director or a designee and recorded, and the board reviews a list of all grants each quarter. Launch grants are about $45,000 a year in Year 1. We tell participants that grants may be taxable income and that they should ask a tax professional.

Stipends and supports. Each participant receives a stipend of $300 over the program, tied to attendance, for transportation and other costs, and childcare help during class. Stipends are for participation, not wages. An attorney and our accountant review how stipends and grants are treated for tax and benefit purposes before we begin. Participants who receive unemployment benefits or other public benefits are helped to ask the agencies about how self-employment, training and grants may affect them, and where the state has a Self-Employment Assistance program, how to apply. We do not give benefits advice ourselves.

Education, not professional advice. We teach concepts and provide referrals. We are not a law firm, a tax preparer or a financial advisor, and we say so. The legal clinic gives general legal education and refers participants who need advice to licensed attorneys. We refer participants to free tax help for self-employed people.

Fair and honest practice. We never charge participants or promise income. We do not accept payment from any vendor for referring a participant, and we do not recommend one vendor over another for a fee. We teach participants to check businesses and opportunities for scams, and we are open about how many new businesses do not survive.

Safety and compliance. Home-based and food businesses must meet health, zoning, licensing and insurance rules, which differ by city and county. We teach participants to check with the city and the health department before they sell, and the Small Business Navigator helps. We do not allow sales of anything illegal, unsafe or unlicensed at our market days, and we check vendors' permits.

Privacy. Participants' information, including financial information, is confidential. It is kept in a locked cabinet and a secure, password-protected system, and shared with mentors, lenders or funders only with the participant's written permission, except where the law requires. We report results to funders only as totals, never with a participant's name.

Insurance and records. We carry general liability, property, professional liability and event insurance for market days, and workers' compensation once we hire. Insurance is about $7,000 a year in Year 1. Grant money is tracked separately so we can show each funder how their money was spent, and an outside accountant reviews our books every year.

Management & Organization

Who leads the organization.

Ramona Chavez, Executive Director. Ramona leads the organization, raises money, manages grants and contracts and relationships with the workforce board, lenders and the state's small business office, supervises staff and reports to the board. She started a catering business after being laid off, spent 6 years as a Small Business Development Center advisor and co-led our pilot class. Planned salary: $60,000 a year.

Program Director and Lead Instructor. Leads the curriculum, teaches the course, supervises coaches, manages mentors and the Launch Lab and oversees quality. Must have small business experience and experience teaching or coaching adults. Planned salary: $54,000 a year.

Business Coach. Provides one-on-one coaching during and after the course, helps with business plans and pitches and runs peer circles. One in Years 1 and 2 and two from Year 3, at a planned salary of $46,000 each. The Rio Grande Opportunity Fund grant would support the first Business Coach.

Small Business Navigator (Licensing and Financing). Helps participants with licenses and permits, legal structure, bank accounts, loan preparation and referrals, and runs the legal and licensing clinic. One in Years 1 to 3 and two from Year 4, at a planned salary of $44,000 each.

Program Coordinator (part-time). Handles applications, attendance, stipends, childcare help, market days, records and reports, about 25 hours a week. Planned pay: $26,000 a year.

Pay figures include payroll taxes and workers' compensation insurance.

Staff in each year: 5 paid staff in Years 1 and 2 (four full-time and one part-time), 6 in Year 3 and 7 from Year 4 on.

Mentors and guest instructors. About 25 volunteer mentors in Year 1, including business owners, bankers, accountants and attorneys, who coach participants, judge pitches and teach sessions. Mentors complete a short orientation and do not handle participants' money.

The board. A seven-member volunteer board approves the budget, reviews results twice a year and helps raise money. Board members serve three-year terms. The board's certified public accountant chairs the finance committee. The board's graduate of our pilot class and bank officer help keep the program grounded in what participants and lenders need.

People who help us. An outside accountant who reviews our books every year, an attorney who reviews our lease, launch grant rules and policies, an insurance agent who understands training programs and events, and an advisory group of participants, mentors and a lender who meet each semester to tell us what is working.

Training. Staff complete training in adult learning, coaching, financial counseling basics and cultural humility before the first cohort, and attend at least two trainings a year.

Money management. Grant money is tracked separately for each funder. The Executive Director and a board member must both approve any payment over $2,500.

Milestones Narrative

Our goals for each year and how we will measure them.

- Year 1: Open the institute, run three cohorts and enroll about 72 adults, with about 61 completers, about 30 launch grants and at least 55% of completers launching a business within 12 months. A balanced budget of about $418,500, with a small surplus of about $11,300. 5 paid staff.
- Year 2: Run four cohorts, enrolling about 86 adults and graduating about 73. Begin 12-month follow-up with Year 1 participants. A balanced budget of about $438,500, with a small surplus of about $11,400. 5 paid staff.
- Year 3: Add a second Business Coach, enrolling about 104 adults and graduating about 88. A balanced budget of about $508,000, with a small surplus of about $11,700. 6 paid staff.
- Year 4: Add a second Small Business Navigator, enrolling about 124 adults and graduating about 105. Invite graduates to mentor new participants. A balanced budget of about $578,500, with a small surplus of about $12,200. 7 paid staff.
- Year 5: Enroll about 149 adults and graduate about 127, with state, workforce board and small business contracts covering about 30% of our budget. Report five years of results, including how many businesses are still operating. A balanced budget of about $608,500, with a small surplus of about $12,100. 7 paid staff.

What we measure:
- Applications, enrollment, attendance and completion by cohort.
- The decision each participant makes at the end of the course: launch, part-time, wait or take a job.
- Launch grants awarded, businesses launched, licenses obtained and business bank accounts opened.
- First sales, revenue and income reported by participants, with consent.
- Businesses still operating at 12 months, and jobs participants take.
- Participant and mentor satisfaction.
- Contracts and sponsorships received and the cost per completer.
- Results by gender, race and background so that we can find and fix gaps.

How we review results. The Program Director reviews attendance and progress every week. After each cohort, staff, coaches, mentors and our advisory group review the results and change what is not working. Twice a year, the board reviews results and we share them with funders and partners as totals. Every number in this plan is a goal, and we will report what really happens.

Funding Request

What we are asking for, and how the money will be used. Our request: $80,000 from the Rio Grande Opportunity Fund for one Business Coach, launch grants, participant stipends and a legal and licensing clinic, for July 2027 through June 2028.

The request is spread across these budget lines:
- Personnel: Business Coach salary, $46,000.
- Other: Launch grants for participants (paid directly to vendors), $20,000 (other funds add $25,000).
- Other: Participant stipends, $6,000 (other funds add $15,600).
- Contractual: Legal and licensing clinic contract, $8,000 (other funds add $4,000).

Other money in the program. State, workforce board and small business contracts, business and bank sponsors, other grants and local donors pay the other $44,600 of those lines, plus the Executive Director's salary ($60,000), the Program Director ($54,000), the Small Business Navigator ($44,000), the part-time Program Coordinator ($26,000), childcare and transportation support ($14,000), Launch Lab supplies and equipment upkeep ($10,000), mentor engagement, pitch nights and market days ($10,000), training materials and bookkeeping software ($8,000), training and Launch Lab space and utilities ($30,000), insurance ($7,000) and evaluation, data and administration ($14,000).

Year 1 budget: about $418,500, planned to balance with a small surplus (about $11,300 after the yearly wear on equipment). Year 1 money coming in: grants $323,500 (this request plus other grants we are applying for), state, workforce board and small business technical assistance contracts $60,000 and business and bank sponsors and donations $35,000. Year 1 costs: Executive Director $60,000; Program Director $54,000; Business Coach $46,000; Small Business Navigator $44,000; Program Coordinator $26,000; launch grants about $45,000 (about 30 grants averaging $1,500); participant stipends about $21,600 ($300 for each of 72 participants); childcare and transportation support about $14,000; legal and licensing clinic contract about $12,000; Launch Lab supplies and equipment upkeep about $10,000; mentor engagement, pitch nights and market days about $10,000; training materials and bookkeeping software about $8,000; training and Launch Lab space and utilities about $30,000; insurance about $7,000; evaluation, data and administration about $14,000; and about $8,600 a year for the wear on equipment.

About contracts. The state, the workforce board and the federal Small Business Administration fund technical assistance for small businesses and workforce services, and some programs support self-employment training for unemployed workers. These funds are competitive, awarded for set periods and have rules about eligibility and reporting. The state's small business office has invited us to apply. The amounts in this plan are planning estimates, not promises. Payments often arrive after we submit a request, so we plan for about $29,295 owed to us at the end of Year 1. We plan for grants and donors to cover the gap if contracts are delayed or reduced.

One-time startup costs. Startup costs of $59,500 are paid once from startup money, not from the yearly budget: $28,000 of equipment (laptops, printers and a packaging station, a photo and video studio kit, classroom furniture and market day displays), $8,000 for paint, flooring, lighting and a private coaching room, $6,000 for the lease deposit and first month of rent, $3,000 for the opening supply of workbooks and supplies, $1,000 for the business license and permits, $6,000 for an attorney's review of the lease, launch grant rules and policies and for accounting setup, $3,000 for the sign, brochures and website, and $4,500 for background checks, coach training and the first insurance payment.

How we got our startup number. The Funding Need Calculator in this plan adds the startup costs ($59,500), the cash we need to cover the wait for the first payments (about $12,400) and a cash cushion of about $100,400, which is about three months of Year 1 costs. That comes to $172,500. We start with $25,000 of our own savings and $155,000 in startup support from a community foundation, a bank and our board, $180,000 in all, which covers that amount with room to spare.

The next five years. Our budget grows from about $418,500 in Year 1 to about $608,500 in Year 5. Grants are planned at $323,500, $303,500, $333,000, $360,500 and $348,500 in Years 1 to 5. Contracts grow from $60,000 to $180,000, and business and bank sponsors and donations grow from $35,000 to $80,000. We add a second Business Coach in Year 3 and a second Small Business Navigator in Year 4. Grants fall from about 77% of our income in Year 1 to about 57% in Year 5.

Savings. We plan to keep several months of costs in savings. The lowest year-end balance in the plan is about $139,600, at the end of Year 1.

After the grant. Our plan is for contracts from the state, the workforce board and small business programs to cover a growing share of the cost, since we help people move off unemployment and into work or business, and for banks, businesses and individuals to sponsor launch grants and cohorts. We may also charge a modest fee to participants who are not unemployed, offer paid workshops to other organizations and explore a partnership with a community lender.

Risks and how we will handle them:
- Too few applicants or too many dropouts. We recruit through many channels, hold information sessions with meals and childcare, call after two missed classes and build in supports.
- Businesses fail. We are honest about the risks, help participants test ideas cheaply, offer a year of coaching and count a decision to wait or take a job as a good result.
- Participants lose benefits by mistake. We tell every participant to ask the agency before acting, and we do not give benefits advice ourselves.
- Participants are scammed or fall into a risky opportunity. We teach scam awareness and never allow vendors to recruit participants.
- A participant sells something without the right license. We teach licensing from the start, check vendors at market days and connect participants to the Small Business Navigator.
- Contracts are delayed or not awarded. We plan with a cash cushion, stage hiring so costs follow funding and apply to other funders.
- A grant ends. We keep savings, grow contracts and sponsors each year.

If you are just starting. A new organization can begin before it has its own 501(c)(3) status through a fiscal sponsor: an established nonprofit that receives grants for you and passes them to your program, usually for a fee (commonly around 5% to 10% of the grant, sometimes more; ask before you agree). Another way is to start smaller: one 8-week evening class of about 15 people in borrowed space with volunteer coaches from the Small Business Development Center, tracked carefully. Strong results from a small start make larger grants easier to win.

Appendix Notes

Documents to attach with this proposal:

- Your IRS 501(c)(3) determination letter, or your fiscal sponsor agreement.
- Your most recent financial statements and your current year budget.
- A list of your board members and what each one does.
- Resumes for your Executive Director, Program Director and Business Coach.
- Your 12-week course outline and sample participant business plan template.
- Letters from the state's small business office, the Small Business Development Center, the workforce board, lenders and mentors.
- The letter of intent for the lease, or a letter from the landlord.
- Results from your pilot class, shown as totals.
- Your launch grant rules, rubric and application, and your participant application, stipend policy and attendance policy.
- Your privacy policy and your disclosures about benefits, taxes and scams.
- Proof of liability and event insurance, or quotes.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Grant Revenue: $323,500 in Year 1, then $303,500, $333,000, $360,500 and $348,500.
- State, Workforce Board and Small Business Technical Assistance Contracts: $60,000 in Year 1, then $90,000, $120,000, $150,000 and $180,000.
- Business and Bank Sponsors and Donations: $35,000 in Year 1, growing to $80,000.
- Participants: 72 in Year 1 (three cohorts of 24), then 86, 104, 124 and 149, with about 85% completing.
- Launch grants: about $45,000 in Year 1 (about 30 grants averaging $1,500), growing about 15% a year.
- Pay (a full year, per person, including payroll taxes and workers' compensation): Executive Director $60,000, Program Director and Lead Instructor $54,000, Business Coach $46,000 (one in Years 1 and 2, two from Year 3), Small Business Navigator $44,000 (one in Years 1 to 3, two from Year 4), Program Coordinator (part-time) $26,000.
- Other yearly costs in Year 1: Launch Grants $45,000, Participant Stipends $21,600 ($300 per participant, growing about 20% a year), Childcare and Transportation Support $14,000, Legal and Licensing Clinic Contract $12,000, Launch Lab Supplies and Equipment Upkeep $10,000, Mentor Engagement, Pitch Nights and Market Days $10,000, Training Materials and Bookkeeping Software $8,000, Training and Launch Lab Space and Utilities $30,000, Insurance $7,000, Evaluation, Data and Administration $14,000. The other costs grow between 4% and 20% a year.
- Equipment: $28,000 at the start, then $3,000 to $5,000 a year.
- Startup costs: $59,500, paid once from $180,000 in startup money.
- About 7% of each year's income is still owed to us at year end.
- Tax: none, as a nonprofit.
- Every dollar amount is an estimate. Replace them with your own quotes and real budget.

Startup Costs