Positive Transitioning, Inc. Magazine - September 2019 - The Entrepreneurship Issue

Multilevel Marketing

Starting a Nonprofit

The Entrepreneurship Issue Illinois State Resources

From Hustler to Entrepreneur

Is Franchising for You? 2

Eating on the Go

In This Issue Entrepreneurial Issue September 2019 Letter from the Executive Director Word of the Month Illinois State Resources Multilevel Marketing: Eyes Wide Open How to Start a Nonprofit Is Franchising for You? From Hustler to Entrepreneur: One in the Same Nutrition: Eating on the Go

2 4 5 7 8 10 12 14

Letter from the Executive Director According to a Prison Policy Initiative report in 2018, 27% of ex-offenders were unemployed. The rate for the general population was 5.2%. You don’t have to be a math genius to know that 27 is way more than 5.2. The high rate implies discrimination against ex-offenders. And when you can’t go straight through, sometimes you have to go around.

This issue is about entrepreneurship – the nontraditional ways to be your own boss, and earn an income without having to get hired.

Make no mistake, entrepreneurship isn’t easy. Some say you work harder for yourself than you ever will for someone else.

In this issue, we’ll discuss multi-level marketing, franchises, non-profits and starting a business from scratch. Since entrepreneurship isn’t for the faint of heart, you want to start with finding your passion. Doing something you care about – because you will be working hard at it.

But the reward for your hard work, will far surpass what you receive when working for someone else.

Sincerely, Porche Proffit

2

Masthead and Contributors Editor-in-Chief, Porche Proffit Editor, Ericka Foster

Contributors Writer, Maggie Allen Nutrition and dietician Isabella Dos Santos

It is our mission to provide returning citizens with the necessary, immediate and long term resources needed to successfully reintegrate back into the community. We will achieve this by providing resources for employment, housing, education, and life coaching, regardless of crime, socio economic status, sexual orientation, gender, or ability to pay.

3

am¡bi¡tion a strong desire to do or to achieve something, typically requiring determination and hard work.

Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved. ~ Helen Keller

4

Illinois State Services  7-70 Re-entryservices 770reentryservices.org This faith-based organization offers life and career coaching, clinical pastoral counseling, family mediation, and case management.  Agape Missions, NFP agapemissionsnfp.org/what-we-do/ Located in Joliet, IL, Agape Missions provides services for individuals living with HIV/AIDS. Their services extend to individuals re-entering society. They offer case management, employment information, substance abuse services and more.  Catholic Charities of Diocese of Joliet catholiccharitiesjoliet.org With locations in four counties in the state, this faith-based organization offers support services such as counseling services, a food pantry, along with anger management, parenting, and life skills classes.  FirstFollowers www.firstfollowersreentry.com Located in Champaign, IL, FirstFollowers is a community based organization that offers peer mentoring, employment assistance and job readiness training, and advocacy for individuals with felony convictions.  Hands of Springfield helpinghandsofspringfield.org Hands of Springfield is a men's shelter that provides social services which will help men get on their feet. The organization provides case management, legal support, and mental health services, along with an evening meal, showers, and a comfortable bed.

5

 Re-entry Employment Service Program www2.illinois.gov/ides/pages/re-entry_employment_service_program.aspx The Re-entry Employment Service Program (RESP) serves Illinoisans who are currently, or have in the past been, subject to any stage of the criminal justice process and who require assistance in overcoming barriers to employment resulting from a record of arrest or conviction.  Restore Justice Foundation restorejustice.org/ Restore Justice Foundation focuses on youth (children and young adults, under age 25) convicted of crimes who are currently serving– or at the risk of serving– 40 years or more in the adult system. We develop a holistic approach to policy change for this group of people, with implications on the broader criminal justice system.  Safer Foundation saferfoundation.org Safer Foundation is one of the nation’s largest nonprofit social impact organizations focusing on human capital development for people with criminal records. At Safer, we focus on helping our clients secure and maintain employment because we understand that employment offers the best chance at successful reentry.  St. Leonard’s House slministries.org/slh/ St. Leonard’s House provides interim housing and supportive services for formerly incarcerated men returning to the community from Illinois prisons.

They offer services such as addiction counseling, housing placement, education and employment services, and life skill programs.

We have started a campaign called We are the Spark.

This campaign asks for a $6.16 donation to our organization. We have to help each other to overcome the crime and violence that is plaguing our communities. Please take the time to watch the video and make a donation.

6

Multilevel Marketing: Eyes Wide Open

by Ericka Foster Multilevel marketing (MLM) is also sometimes known as network marketing or direct selling. They’re the kind of companies people ask individuals they know to purchase a product. If the friend likes the product, then s/he can s also start selling it. You may not know the name of the type of company, but you’ve probably heard of them: Avon, Mary Kay, and Herbalife. And you’ve probably had a friend try to sell you a product as a part of a multi-level marketing company. The companies are not all bad, but you should approach them with a healthy level of skepticism.

MLM vs. a pyramid scheme MLMs are OK, pyramid schemes are illegal. According to the South Dakota Bureau of Consumer Protection, the difference between a pyramid scheme and an MLM is that there are no products to sell in a pyramid scheme.

Participants are promised high rates of returns for recruiting others. With the MLM, you can only sell products if you choose. Or you can recruit others.

Research the company If you are thinking of selling products through an MLM, do your research. Don’t get caught up in how much money someone will tell you that you’ll make. You might have even gone to an “information session”. Don’t stop there. Check with the Federal Trade Commission, the Better Business Bureau, and your local consumer protection agency to find out if there are any complaints or lawsuits against the company.

Don’t believe the hype If you do your research and decide you want to participate, don’t expect to get rich – quickly or slowly. Consider the costs required to get the business up and running – initiation costs, website costs, phone and internet costs. Then consider that succeeding in this business requires that you know people – so many people that even if most of them say no, you will be able to make a profit from the ones who say yes.

Not all MLMs are bad news. The important things to remember are make sure it’s not a scam and be realistic about the amount of money that you can make.

7

How to Start a Nonprofit: Hard, Rewarding Work

By Ericka Foster It’s not unusual for those who have turned their lives around to want to help others. For some, part of the recovery process is to pay it forward. One way to pay it forward is to start a nonprofit. A nonprofit is sometimes referred to as a 501(c) (3) most non-profits fall into that tax-exempt category. Visit the IRS web page and consult with a tax professional on the ins and outs of the non-profit tax status.

As with ANY self-employment endeavor, start by being passionate about the idea. If you start a nonprofit to help puppies, you will work 12-hour days building your nonprofit, research everything you can about puppies, and tell everyone you know about why this puppy cause is important. You shouldn’t be a cat person. “I wish someone would have told me about how unbalanced my life would become and then give me some helpful tips on how to bring back that balance. You don't realize how much time is spent on different activities, and how many hats you actually have to wear,” explains Porche Proffit, the co-founder of our organization, Positive Transitioning. “It's a really interesting learning process since you are wearing so many at times completely different hats. That's what makes focusing on your time distribution so important, making sure that you are spending time on responsibilities that are more challenging, and not spending all your time on the responsibilities and tasks that are enjoyable.”

Once you have found your passion, you need to create a plan – a business plan.

Huh? But it’s a nonprofit. The best nonprofits run like businesses. Furthermore, answering the questions that are required to complete a business plan are the same questions that you should ask to decide if your nonprofit will be successful. Your business plan will help you figure out what makes you stand out from other nonprofits, how you will finance your nonprofit, and how you expect your nonprofit to grow. Having a direction for your organization will help you predict the time and

8

effort required to get your nonprofit off the ground. You can find a business plan template online.

However, you do not have to create your business plan alone. SCORE is one of the most respected nonprofits and provides free assistance to people needing business help. You can find someone who can help you hash out the details of your business plan. The Small Business Association as well as the National Association of Nonprofits can also help you find resources that will help you build a solid business plan.

Once you have your passion and a plan, you’ll need to complete the paperwork to become tax-exempt with the IRS, and with your state. You may also be advised to be tax-exempt in a city or county as well. Becoming incorporated is very similar to a incorporating a business – you’ll need to choose a business name, appoint a board of directors, decide on a legal structure, then incorporate and apply for taxexempt status. Then be sure to obtain the licenses required to run your business.

Running a nonprofit can be an incredibly rewarding experience, and should be a real consideration for someone who wants to have a fulfilling career while making a new life for themselves, with the understanding that it is still building a business. “I have learned so much and have taken myself outside of my comfort zone a great deal. So it is definitely helping me to be a better person,” explains Porche.

Check out our Radio Show! www.radionomy.com/en/radio/omertaradio

9

Is Franchising for You?

By Maggie Allen Have you ever considered opening a franchise?

Franchising is a method of distributing products or services.

It’s kind of like opening up a small business, but it tends to be less risky because someone else owns the brand -- think McDonalds, Starbucks, or Marriott hotels.

But how does that work? According to the International Franchise Association, “There are usually at least two levels of people are involved in a franchise system: (1) the franchisor, who establishes the brand’s trademark or trade name and a business system; and (2) the

When you think of franchises, you may think of fast food, but all types of companies franchise, including gyms, tax services, barber shops, cell phone repair, and janitorial services. Take a look at Entrepreneur magazine’s Franchise 500 for more ideas.

franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.

Technically, the contract binding the two parties is the ‘franchise,’ but that term is often used to mean the actual business that the franchisee operates.”

For example, the folks in charge at McDonald’s headquarters could agree to open a restaurant in Iowa. They make a contract with someone, Ms. Brown, who wants to run the new location, and as long as she acceptably embodies the brand, she can do so. Ms. Brown, as the franchisee, practically becomes her own boss, with most day-to-day decisions at the Iowa location left up to her discretion.

But Ms. Brown doesn’t want to start everything from scratch. Developing hiring and training models takes a lot of time, research, and experimentation. She’d much rather jump right into things with a helpful script already in place to guide her.

Depending on the contract she makes with McDonalds, she can do that.

In the most common kind of franchising, business format franchising, the franchisor provides to the franchisee not just its trade name, products and services, but an entire system for operating the business. In this instance, Ms. Brown would receive site selection and development support, operating manuals, training, brand standards, quality control, a marketing strategy and business advisory support from McDonalds HQ. So what do you need to get started? First, pick an industry that interests you. What kind of products or services would you like to provide? Research the existing franchises in your area, and select a couple that you like for further research.

10

Next, familiarize yourself a bit with franchise laws. These are comprised of both federal and state laws, and they pertain to things like franchisor disclosure requirements; franchisor and franchisee relationships; and industry-specific laws, so there can be a lot of variance. As you research more about a particular franchise’s operation, you’ll have a better idea of what exactly is required of you. In general, you should expect a look into your financial history, credit history, history of any previously owned businesses, and any experience you have in the industry or general management.

While there is no current federal or state law preventing a felon from owning a business or franchise, as with the regular corporate sphere, some franchisors may not be willing to pursue a relationship with them. Personal qualms notwithstanding, felons might face trouble licensing and bonding for a franchise, although depending on the circumstances of the crime, it is possible to speak to an attorney and secure what is called a Certificate of Relief from Disabilities. In this, a court requests that the licensing board consider you, regardless of any financial loss or low credit ratings that may have resulted from your time incarcerated.

The best approach, if you are questioned, is to be honest; disclose anything you feel you need to before it pops up in the background check. Failing to disclose the felony itself is considered fraud, comparable to falsifying documents. If your state does offer the Certificate of Relief from Disabilities, consider expunging your record, if that is possible.

At the very least, participate in any job-relevant education or training you can get your hands on. Check out if there are any courses offered at your local library or school system. Every little effort improves your chances.

If all else looks good, think about the investments required: scouting locations, time commitments, capital, training, etc. There will be numerous hurdles, but having an open conversation and establishing a good relationship with your franchisor is essential. So many opportunities could be waiting for you; you just need to listen for the knocks.

11

Hustler to Entrepreneur: One in the Same

By Ericka Foster In 2018, I was launched into becoming a full-time freelance writer and marketing consultant. During the five-year adventure, I had a chance to work with other small business entrepreneurs including a tax accountant, a yoga studio owner, and a nonprofit owner. There are all kinds of entrepreneurs – offering goods or services, one employee or several, having a bricks and mortar location or using a home office.

You’ve got what it takes In his article for Entrepreneur magazine, ex-offender and entrepreneur Andrew Medal says that three reasons that the formerly incarcerated make good entrepreneurs are:   

They can handle uncertainty They are creative thinkers They are experts in resourcefulness

If you can handle the uncertainty of prison, you can handle the uncertainty of running a business. One minute, you’re feeling great about the direction of the business, and the next minute you are wondering what the hell you are thinking. (I’ve found that those moments hit hardest at about 4 a.m.). That’s why it is so important to be passionate about your work. You will certainly run the gamut of emotion – scared, proud, hopeful, and disappointed. You need to be anchored by the idea of knowing that you are meant to do the work.

“I started Positive Transitioning with my co-founder and sister because I have always been interested in the justice system, but also a passion to help support those that don't have anyone“ explains the Porche Proffit, the co-founder and Executive Director of Positive Transitioning, Inc. “These two passions are what led me to want to begin Positive Transitioning.” It’s not an easy rode, but passion is what motivates you.

Creativity doesn’t stop at coming up with a unique idea. You get to solve every challenge in a nontraditional way. There will be staffing challenges, funding challenges, logistical challenges. But an exoffender who has disregarded the rules, will bring that same rebelliousness to building the business.

So much of what being an entrepreneur is …is making it happen. Once you have those creative ideas, you have to make it happen with limited resources – time, money, and personnel. Sometimes they call it a startup mentality, but nonprofits know that life. You will too, if you decide to start your own business.

12

"I love entrepreneurship because you become an owner. Entrepreneurship is the key to wealth in our society,” says Brian Hamilton (pictured left), founder of Inmates to Entrepreneurs and the Brian Hamilton Foundation. “Also, you, through your own hard work, control your destiny." Inmates to Entrepreneurs is an organization that provides the formerly incarcerated with entrepreneurial skills and support.

Inmates to Entrepreneurs provides online resources, correctional facility workshops, and city-based events to give ex-offenders with the tools to build a sustainable business. The origin of the organization took place in 1992 when Brian Hamilton and Reverend Robert J. Harris met. 27 years later, their relationship has blossomed into an organization that helps formerly incarcerated men and women build their own businesses. In-person courses are offered in North Carolina – in facilities and outside -- where the organization originated. For those outside of North Carolina, the course is available online.

To be a successful entrepreneur, ex-offenders have to harness those positive qualities into an aboveboard, legal business. In addition to Inmates to Entrepreneurs, there are other organizations that can help formerly incarcerated individuals receive the tools they need to build a viable business.

Defy Ventures offers three programs to help the formerly incarcerated get a new lease on life with training programs -- CEO of Your New Life which is a program which begins in incarceration or re-entry.

Defy also offers an entrepreneur boot camp for those who those who are released before starting the program. Finally, the organization offers a business incubator which walks the entrepreneur through the steps of building the business and includes seed money to get started. The organization boasts a less than 8% recidivism rate after one year.

Prison Entrepreneurship Program (PEP) runs six-month When searching for support entrepreneurship training programs at the men’s facilities online, be sure to type in located at the Sanders Estes Unit in Venus, Texas, the keywords like “microloans” and Cleveland Correctional Center (CCC) in Cleveland, Texas “small business incubator” to and the Lockhart Correctional Center in Lockhart, Texas. get the most out of your search.

They also offer the Leadership Academy phase at the Gib Lewis Unit in Woodville, Texas. The in-prison leadership academy and mini-MBA boot camp begin with a comprehensive candidate selection process, includes coursework by volunteers with real entrepreneurial experience, and culminates with a competitive business plan competition and post-release support.

This is not a comprehensive list; this is just a place to get started. When searching for organizations to help ex-offenders become entrepreneurs, also look for organizations specifically focusing on women and/or minorities.

Although we’ve said several times throughout this issue, being an entrepreneur is NOT easy. But sometimes, it will be fun, often it will be rewarding, and usually the reward will be worth the hard work.

13

Eating on the Go

By Isabella Dos Santos

Ideally, we want to enjoy and mindfully eat your food. However, our “limited on time” lives nowadays and the still necessary biological need of eating can force us to grab a meal while we are commuting, or walking (sometimes running) to our work. Or doing our work.

The easy way may be to grab a bag of chips or crackers and pair it with a bottled juice or coffee, but the healthy way (which is not difficult) would be slightly different. The deal here is what we choose to feed our body – even on the go.

Prepare meals at home For those days where you have some “extra” minutes, to pack a nice meal for yourself. You can plan ahead on a weekend, or carve out a little extra time in your day.

For breakfast, prepare a nice granola mix and pair it with yogurt. Mix some popped amaranth or quinoa, almond or walnuts, dark chocolate or whole wheat

14

cookies (low sugar, please) and… voilà! You can pack it either in a small mason jar or a reusable zip-lock bag.

For snacks, a fruit salad with a tablespoon of crushed peanuts, or a nut butter/jelly sandwich (whole wheat bread, natural butter and real jelly with no sugar added).

For lunch/dinner you could try to stuff whole wheat pita bread with as many veggies as you like, some cooked black beans and a topping of hummus, Greek yogurt and crushed pumpkin seeds.

No-time to pack solutions Here are some SOS tips for the “hangry” moment of the day where you need to eat and did not have the time to pack your lunchbox.

Get to know the stores or restaurants near you that have adopted the ideals of seasonal, fresh and locally prepared food.

Chose more baked, braised, boiled, roasted, poached, lightly sautéed and steamed instead of fried, breaded, au gratin, pastry or with “any” added sauce (like cream, gravy or mayo).

Go mainly for the non-packed food, which means no processed food. If you do buy something that is packed, look for something with few REAL ingredients (not the ones we can´t even pronounce).

Ask for the healthy options at the “usually not healthy chain restaurants”. The strong societal pressure over the years has made the big companies adapt to our new demands. Don't be shy!

Try to have with you a fruit and a pack of your homemade granola or trail mix (to avoid the “very very hangry” moment).

Check out the Positive Transitioning App on the Google Play Store! play.google.com/store/apps/details?id=com.appsmakerstore.appPositiveTransitioning

15