Everyone is born with Self Esteem. Some lose it along the way.
We give it back.
Sesteem will be big – very big. Our goal is to grow our Development Fund to $100 million in five years or less. And, we will be the boss because we will provide the management team on all of our projects. Sesteem will not just focus on setting up businesses. We may be able to help charities in other ways. We may be able to help with management expertise. Perhaps we could help with grant writing on a no win – no fee basis. We may have access to alternative funding sources. We may be able to source specialist advice on technical matters. We would like to position ourselves as a trusted consultant on charity sustainability. We will work with any charity, no matter how small or large, that has strong vision, a good idea and determination to succeed. If you would like to talk to us, please do make contact. At the same time we will be working towards establishing large scale, multi-million dollar Social Enterprise ventures in several fields. Also, we have a goal to help to eradicate homelessness through our ‘Homeless Starter Pack’ concept. Please read on to find out more. Finally, you are reading this because you are interested in Social Enterprise. You may be a charity that needs help. You may be a technical person that can provide expert advice. You may be an investor that would like to make a social impact. Whatever your situation, please do talk to us and, perhaps, become a member of the Sesteem Team that will change the world.
Over several years of research we have identified a number of significant factors related to the charitable sector in Australia. Key points are:
- Every charitable organisation in the country is suffering a funding crisis and all crave financial stability and release from grant dependency.
- No charitable group that we have found has the business knowledge or human capacity to establish a corporate scale Social Enterprise business.
- There is no form of government or philanthropic funding that encourages the creation of large Social Enterprise projects.
Sesteem will address these issues.
How it works - The Sesteem Model
Sesteem will work with every disadvantaged sector of the community: Homeless, disabled, youth, substance abuse, refugees etc. The Project Management Group will liaise with registered charities, large and small, to identify possible SE business opportunities. If the charity has a good business idea, Sesteem will evaluate and, possibly, implement that idea. If the charity does not have a viable idea then Sesteem will design a project based on fresh food production in high-tech, climate controlled greenhouses, either on small urban blocks or in large rural developments. Sesteem will consider any proposal for a SE business, no matter how large or how small. Once a business idea has been accepted, the Project Management Group will carry out a detailed feasibility study and prepare a business plan. The business plan will go to an independent assessment committee, which will approve finance. The DF will advance the funding as a loan provided at zero or very low interest rates. On loan approval, the Project Management Group will establish a new company for the project. Sesteem will hold 10% of voting shares in the company and the participating charity will hold 90% of non-voting shares. This means that Sesteem will retain management control of the new company. Sesteem will appoint and control the management team of the new company. Most Sesteem projects will generate sufficient surplus income to repay the loan within twelve to eighteen months. This is the first financial priority and the repayment will go directly back to the DF. In subsequent years an annual dividend will be paid to the shareholders in accordance with the shareholdings. The 10% dividend to Sesteem will go to grow the DF. The charity will receive the remaining 90%, to do with it whatever it wants – pay staff, buy equipment or, hopefully, invest in new projects. This way the charity gains relief from grant dependency and the Sesteem DF grows (and becomes completely self-sustainable) from dividends from multiple projects. The flowchart below illustrates how a Social Enterprise business will be set up under the Sesteem model.
Sesteem Food Growing Systems
Why do we focus on food? Sesteem will assist any good business idea. However, the core focus of Sesteem SE businesses will be job creation through food production. Oil and Iron Ore will eventually run out but worldwide demand for food will always increase. Therefore, so long as it is properly managed, a food production business cannot fail. There are a few other important points related to the SE food growing sector:
- It provides a very good profit margin.
- It requires very little training.
- It is gender and age neutral – men, women and young or old people can participate.
- It gives a real purpose in life because participants are genuinely contributing to society.
- It increases Australia’s food security.
- It helps the environment by eliminating the ‘food kilometres’ transport factor.
- It provides fresh produce on the doorstep for the urban population, including remote rural communities.
- It provides a perfect business model for a Social Enterprise, large or small.
The scheme involves food production in greenhouses that can be built anywhere. They can be made cyclone proof, snow proof, whatever. Specially designed growing cages hang in arrays inside the greenhouse, are planted on both sides and rotate 360 degrees, twice a day, to capture maximum light. Plant nutrients are introduced through the irrigation system with dosages monitored remotely. In Australia, each greenhouse can be fully climate controlled by a hi-tech, solar powered, evaporative air conditioning system. The system can be scaled down or up to cater for small urban sites up to multi-hectare full production systems. This is perfect because it means that fresh food can be produced anywhere – remote Aboriginal communities, mine sites, urban vacant blocks, rooftops, whatever, 365 days a year in any outside climatic conditions. The greenhouses can also include heaters for colder climates. An additional advantage of greenhouse vegetables is that it produces very rapid cash flows. The first product focus of any project would be micro greens such as Alfaffa sprouts. These grow in punnets and mature in three weeks, selling at about $3 each. Thus, the project can commence generating income in the first three weeks of life. Lettuce matures in five weeks. Harvest of cherry tomatoes can commence at eight weeks. And so on. Where land is available, additional income streams can be created by including extensive outdoor planting areas controlled by high-tech monitoring and irrigation systems. This would include high value plantation crops.
The Development Fund
The Development Fund (DF) will be a fully accredited investment fund. The goal is to grow the DF to $100 million in five years or less. Growing the fund. The Game Changers management team will work continuously to actively grow the value of the Fund. Some of the paths to achieve this include:
- Dividends received from ongoing successful projects All projects will be a success because the right management teams will be put in place. Every project will generate dividends to the major benefit of the participating charity. Sesteem dividends will wholly return to the DF.
- Direct Donations Sesteem will be a registered charity with Direct Grant Recipient status. This way it can accept donations from any sector into the Development Fund.
- Government programs are hard to identify and tap into. Game Changers will work to identify and exploit this potential to the fullest extent at Federal and State level, with a particular emphasis on getting different government agencies to work together to provide bigger social outcomes.
- Sesteem will procure significant contributions to the DF through collaboration with philanthropic organisations.
- Impact Investors Structures will be established to encourage investment into Sesteem projects from the Impact Investment community.
- Purchasing Power Sesteem will develop a high level of purchasing power. Suppliers will be encouraged to provide trade discounts in the form of cash donations to the DF.
- Industry will be encouraged to provide funding input into specific projects, perhaps through sponsorship or intellectual input from staff.
- Major fund-raising events such as gala balls, fun-runs, etc. will not only raise money but will contribute substantially to the Sesteem public profile.
- Shire and Local Authorities Most Shire Councils across the country offer some form of grants for community projects. Game Changers will, wherever possible, collaborate with local authorities to access these funds to stimulate smaller, community based projects.
- Public programs will be established where the general public will be encouraged to support disadvantaged individuals, similar to the World Vision program overseas.
- International Scale Sesteem will generate strength of scale by partnering with like-minded organisations around the world.