Posted July 26, 2004
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Inc. innovator
Name: Shannon Kenevan
Title: Director of
Harmony Cafe, a program of
Goodwill Industries.
Address: 124 N. Oneida
St., Appleton
Age: 33
Background: Green Bay
native, now a resident of
Appleton; married; licensed
professional counselor.
Education includes master’s in
rehabilitation psychology from
the University of Wisconsin
Madison
Web site:
www.harmonycafe.org
Type of business:
Nonprofit, diversity-themed
program that opened its own cafe
in October. Program events
include discussion groups,
poetry readings, drumming
circles and live musical
performances. Limited menu
includes coffee, cold drinks,
snacks, pizza and burritos for
75 cents to $4
Group formed: In 2000,
during a discussion between
Kenevan and then-Appleton west
senior Sarah Marjenka. It
floated from the Appleton Public
Library to the former Foxley’s
Coffee Break Caffe; gained a
permanent base of operations in
October
Employees: Seven |
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A foot in each world
Nonprofit director learns
business lessons
By Maureen Wallenfang
Post-Crescent staff writer
Q This is a little confusing because Harmony Cafe is
a Goodwill program and an actual physical cafe. Half
nonprofit and half business. How do you describe it?
A Right from the start, we had the intention that
it would be a gathering place with a variety of
features, including bringing diverse people
together. A diversity of age, beliefs, backgrounds,
interests.
Q But was a floating entity at first. Was it
always planned to be a real cafe?
A It was planned to have roots in one location.
The reality was that we knew what we were doing was
a pretty ambitious project and we didn’t want to
plug a whole bunch of energy, money and community
dollars into something before we felt very confident
that we knew exactly what we were doing. We didn’t
want to go and spend $100,000 renovating a place,
then find out, “Oh, this isn’t what we want to do.”
Or “This isn’t something the community wants and
needs.”
Q Where’d you get the $100,000?
A We didn’t take any loans. We had a number of
different community groups and corporations donate
the labor and materials. About $75,000 was donated.
Of the $25,000 (remainder), we got rent rebates for
$15,000 because we did the (renovation) work.
Goodwill supported us with $10,000.
Q So you opened without any debt. Are you
self-supporting?
A Half of the money we raise through sales,
donations and fund-raisers. Goodwill covers half
from sales at their retail stores.
Q What kind of annual budget do you have?
A It’s about $140,000. A good chunk of that is
start-up capital expenses, such as the espresso
machine, refrigerators and freezers, nine computers.
Our ongoing operational budget should be less in the
future. Goodwill gives us $70,000 and $40,000 comes
from sales, $30,000 comes from grants.
Q Have you been running in the black?
A We’re right on budget. If anything, a little
ahead. We’re on track to go over (projections) in
sales and grants.
Q Do you have to make a profit or just cover
expenses?
A I have two bottom lines. One is the financial
bottom line, to cover expenses. At the very least,
it’s to not be losing money. To make a profit would
be great, but it wouldn’t really be a profit because
it would go back into the program. The second bottom
line is the mission work. It’s about doing positive
things in the community and helping people out.
Q Did you write a business plan for this?
A Yes. I did it myself with help from folks at
Goodwill and a gentleman from the SCORE program. I
read some books, and the Internet has a lot of stuff
about business plans. In a lot of ways, there are
similarities to grants that we need to write.
There’s a lot of the same information in them.
Q Obviously the difference between running a
business and a nonprofit is profit. Is that the only
difference?
A We always have two concerns. It’s not just
about dollars. We’re also concerned about the folks
who come in here. Recently an 18-year-old girl was
thrown out of her house. The first place she came
was here to tell us. Likely, if a person would come
into another coffee house and tell them all of that,
maybe they would have helped her, maybe not. They
may have said, “Here’s your coffee. Have a good day.
Good luck.” For sure, we’re going to help her. I
call around the community to hook her up with
programs and services, the emergency shelter, help
get her a job. We do all that networking and
referral. That’s where we’re different. We jokingly
say we’re human service workers disguised as coffee
shop workers.
Q On the business side, what have you learned
from this experience?
A Food codes, health code standards, building
codes. Renovating an old building to new codes was
tricky.
Q Anything been a real eye opener?
A I have a great new respect for all the work
that it takes to run a small business. It’s a lot of
little things like ordering, inventory, doing the
till at the end of the night, supervising a team of
part-time people, trying to balance work shifts,
making sure that shifts are covered and people get
breaks.
Q Do you like all of that?
A Do you want the honest answer? Or the newspaper
answer? I would much rather spend my time and
energies looking at community problems and trying to
envision solutions for them, helping people.
Building community versus counting how many ounces
of tea leaves we have.
Q So the obvious question is: If you had this to
do all over again, would you still do it?
A Absolutely. I do think once we got into a
groove of running the business side, things have
gotten easier and easier. Ordering and inventory
aren’t as hard as they used to be. We still have six
months to a year to be really comfortable with the
business aspects.
Q What advice would you give someone following in
your footsteps, of adding a business to a nonprofit
venture?
A Visionaries have the ideas, but many don’t
realize all the nitty-gritty day-to-day things that
need to happen to make it come true. Explore the
nitty-gritty details. Go work in a coffeehouse for a
while and learn how it works. Manage a business and
get the experience first.