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LIGHTHOUSE LODGE
BUSINESS PLAN

1.0 Executive Summary
Light House Lodge Successful Living Center is a safe affordable living facility providing a beacon of healing, happiness, and success for women in recovery from drug and alcohol addiction. (Many of them have young children). It is funded by Jacob 2 Foundation which is a 501-C-3 non-profit corporation.

1.1 Objectives
Light House Lodge is being created to provide a viable living situation for women (with young children) who are recovering addicts, who are leaving residential treatment. Lighthouse Lodge provides safe, affordable housing so the women and children can be safe while they progress into good health, independence, and self-reliance.

1.2 Mission and Vision
Mission:
To provide affordable, safe, spiritual based (as is fostered in various 12 step fellowship programs) sober living for women recovering from drug and alcohol addiction (single mothers and their young children).

To provide financial, physical, emotional, social, and spiritual support to these families as the mothers acquire life skills, job skills, parenting skills, training, education, self-reliance and independence so they can heal, progress, and provide for them-selves and their children.

To provide a safe, structured and nurturing environment to the children while their mothers are becoming able to independently provide a healthy family life style for their families.

To help stop the cycle of addiction, violence, neglect and abuse so these families can have a better chance at healthy, responsible, self-reliant living.

To pass these skills to future generations.

Vision:
To lead the safe, affordable housing revolution for families in recovery.

To build Lighthouse Lodges all across the nation.

Lighthouse Lodge shines a guiding light over a path toward wellness and independence.


1.3 Keys to Success
Establish a strong network with drug and alcohol treatment facilities to let them know there is safe affordable housing for their female clients and their young children.

Have a strong board of advisors with experience and commitment to the recovery of the women and support for the children. Also advisors who have expertise in charitable foundations, and business success.

Implement an aggressive fund raising program in order to raise tax-exempt money so the facility has no debt.

Make a success plan with the women so they can progress toward self-reliance and independence.

Celebrate milestones of accomplishment on the success path.

2.0 Organization Summary
Jacob 2 Foundation, which is a 501-C-3 tax-exempt non-profit charity, funds lighthouse Lodge.
Lighthouse Lodge will raise funds by seeking gifts and donations from the private sector.
Lighthouse Lodge will have 20 single-family unit apartments with the plan of adding 20 more as funds are acquired.

Our residents will be allowed to move in with no money down. Most of the women, leaving a residential treatment facility, don=t have a job and most of them don=t have many job skills.

The women will be required to contribute to their living expenses. Depending on their need, they may be allowed to work around the facility to earn money in order to show a commitment to taking responsibility for working toward self-reliance.

The Lighthouse Lodge success coach will help each woman create a success plan. This will include her taking responsibility for making arrangments with community resources for continued treatment, health care, 12 step fellowship programs, training, school, employment, and day care for her children.

We do plan to offer an on site day care center where each woman can make arraignments for her children.

Women will be charged rent on a sliding scale according to their ability to pay. It will be tied to the federal poverty guidelines and will parallel what the government-sponsored treatment programs charge them. We will invite consultants and mentors to the facility to offer classes, training, and wholesome activities to support the women and their children in their journey toward health and happiness and independence.

2.1 Legal Entity
Lighthouse Lodge is funded by Jacob 2 Foundation, which is a 501-C-3 tax-exempt charity. The IRS approved it March 8, 2007.

2.2 Start-up Summary
Our start up costs will be gradually increasing. We will begin with costs for printing, and postage for fund raising. We will buy software for record keeping and tax information. These cost will start at about $500. The building it is estimated at about $2.500,000 (two and one half million). We will also need to buy land, which will cost between $300,000 and $1,600,000 (one million six hundred thousand). Lighthouse Lodge will start with one employee who will serve a 3-in-1 position consisting of office superintendent, house mother, and success coach.

Lighthouse Lodge will raise funds as it progresses and will not plan to incur debt.

3.0 Services
Lighthouse Lodge is unique in the way it intends to support women in recovery (and their young children).

The objective of Lighthouse Lodge is to provide a successful living center with a supportive and nurturing environment. We want to see women be able to remain sober, stay in recovery, be able to support themselves and their children, and live a life of health, happiness and success.

We plan to do this by offering

  1. Safe, healthy and affordable shelter.
  2. A gated community where they feel a sense of belonging and support. Also where they feel safe from their former drug dealer, stalker, or abuser.
  3. Access to outside community resources for treatment, 12 step fellowship programs, health care, training, education, employment etc.
  4. Opportunity to invite consultants and mentors to the facility for education, training, and wholesome activities.
  5. Healthy socializing and recreation.
  6. Opportunity to contribute to their community, there by increasing their sense of personal value.

When the women arrive they will pay rent according to their income or ability to pay.

To begin with, even if they have no job, they will still be allowed to move in. They will be allowed to do chores around the facility as a good faith effort in taking responsibility. Also we plan to have some form of cottage industry on site to teach job skills to the women. This could include, but is not limited to, such things as a gift shop, bakery, reception/seminar center, direct marketing etc.

We plan to have a gated community where only invited guests are allowed in. This is to protect the women and their children from former drug dealers, abusive relationships, stalkers, etc. At Lighthouse Lodge we plan to foster an atmosphere of cooperation, friendship, and support.

4.0 Market Analysis
Lighthouse Lodge is being built in direct response to a huge need. Authorities are recognizing that women, especially with young children, who are leaving residential treatment programs, have very limited options. They seldom have a job. They often have very limited job skills or schooling. In some cases they need to “jump through a lot of hoops” in order to have a chance at reuniting with their children. They are often required to continue treatment, find a job, find housing, and be able to care for their young children. This would be daunting for any woman let alone women who are also struggling with staying sober and in recovery from drug and alcohol addiction.

Authorities working in the substance abuse field recognize that it is almost impossible to find enough housing, meaning any kind of affordable place to live. That does not even address the safety risk of the women returning to old friends and creating drug-using environments.

According to Gordon Bruin, Manager of Program Services for the Division of Substance Abuse for Utah County, there are 14 beds for women in the House of Hope. (It is a residential treatment program where women can live and have their children with them.) Women live there for 90 days. When they leave, at least one half of them do not have a safe place for themselves and their children to go.

Darrell Nobel, director of the House of Hope, stated that of the 88 women and 37 children who went through that program in 2006, an estimated 50% of them leave the program with less than adequate housing.

Vickie Jaussi, program manager of the Promise Program, which is offered by the Utah County Division of Substance Abuse, states that at any given time they have approximately 40 women receiving treatment in the intensive and general out patient program and that about 70-80% of them have unsafe or unstable housing.

4.1 Market Segment
Women who are in recovery from drug and alcohol addiction who have young children are the primary target market for Lighthouse Lodge.

As the women leave residential treatment they need a safe and affordable place to live. Some women will be able to live with a supportive husband or other family members and will choose that option. Such women will not be candidates to live at Lighthouse Lodge. Residents will be those who need safe, supportive, affordable housing for themselves and their young children but do not have the good fortune of having a significant other or family members who will provide safe housing and a recovery environment.

4.2 Target Market Segment Strategy
Lighthouse Lodge will contact treatment facilities in the community and let them know about our housing. The substance abuse treatment authorities will refer residents to Lighthouse Lodge.

5.0 Fund Raising Strategy
Jacob 2 Foundation, a 501-C-3 Non profit corporation, will fund Lighthouse Lodge. Funds will be generated by seeking grants, gifts, and donations from the private sector. We want our money to come from private foundations, corporations, and individuals as opposed to government funds.

An aggressive fund raising program will be implemented.

We will solicit donations from other foundations such as Eccles, Huntsman, Ashton, etc.

The initial strategy is to contact people who have charitable giving foundations and see if they would be interested in donating the majority of the money in return for having the facility named after them. An example would be The Jon and Karen Huntsman Lighthouse Lodge Successful Living Center.

We will solicit funds from among the nearly two thousand Utah foundations that do charitable giving. We own a book entitled A Philanthropic Foundations of Utah Directory 2005. (There is a 2006 version now available). It is authored by Roger Henry Plothow, Ed. D, Lenora Dean Plothow and published by Henry Dean Publishing, Inc.

5.1 Funding Forecast
We anticipate an aggressive fund raising program and a good response rate.

6.0 Management Summary
Jacob 2 Foundation will be managed by the Board of Directors. All of whom will serve without compensation. The foundation will fund Lighthouse Lodge.

Lighthouse Lodge will be managed by Louise Knapp, Founder and President. She will serve without compensation. Initially there will be one employee. She will serve as Vice President of People, Projects and Paper. She will be employed to act as office superintendent, housemother, and success coach. She will live on site. She will be available to discuss resident's concerns and work with them on their success plans Mon.-Fri. 8 am.-10 pm. She will be available by cell phone on weekends in case of emergency. Her compensation will start at $60,000 annually. In addition, she will be provided with benefits.

6.1 Personnel Plan
Lighthouse Lodge will have one employee as stated above. The plan is to contract with outside sources for other goods and services. If a genuine need arises for additional employees, we will reconsider the need and act on it.

7.0 Financial Plan
The plan is to raise tax-exempt funds to buy land, hire an architect, and hire a builder. We plan to be debt free. It is estimated that the project will cost between four million and five million dollars. We plan to have the money before we spend it.

7.1 Important Assumptions
We assume the economy will continue to be stable.

We assume that there are philanthropists who are looking for a great cause to fund and will find our cause revolutionary, of great worth to the well being of many young children and their mothers (a basic building block of society), and an exciting crusade with which to be affiliated.
We assume that with the proper preparation and execution in fund raising we will be very successful at raising the needed millions of dollars to build and run the Lighthouse Lodge.

7.2 Surplus or Deficit
We won't have a surplus. If we get more money than is needed for Lighthouse Lodge, we will save it in an interest bearing account until we get enough for an additional facility. We plan to build Lighthouse Lodges all across our nation. (We also hope to provide a place for sober living for males.)

We won't have a deficit because we won't spend until we have the funds.

7.3 Projected Cash Flow
Once our debt free facility is completed, our cash flow needs will be to pay the salary of the housemother. There will also be costs of utilities, maintenance, and insurance.

Our goal is to help our residents become self-reliant and independent. This means that they will be able to pay rent at market value so that they can move up and move out. The collected rents will pay the ongoing costs.

7.4 Projected Balance Sheet
Put Lighthouse Lodge money in an interest bearing account. When we get enough money for the next project, start the project.

7.5 Projected costs:
A. Land and building

Total Item
$ 1,600,000.00 Land in South Springville.
2,500,000.00 Finished Lodge and Apartments
Total: $4,100,000.00  


B. Electronics

Total Per Item Quantity Item Item Source
$1,600.00 $800.00 2 Del Computer Del 0n line.
$120.00 $120.00 1 Fax Machine Staples
$ 600.00 $300.00 2 Laser Printer Staples
$150.00 $150.00 1 TV K-Mart
$70.00 $70.00 1 DVD/VCR K-Mart
Total: $2,540.00        

 

C. Office Furniture

Total Per Item Quantity Item Item Source
$1,000.00 $1000.00 1 Desk Combo RC Willey
$145.00 $145.00 1 Folding Table Utah Office Supply
$158.00 $79.00 2 Office Quest Chair Utah Office Supply
$349.00 $349.00 1 File Cabinet Utah Office Supply
$225.00 $225.00 1 Book Case Utah Office Supply
$269.00 $269.00 1 Rolling Computer Cart Utah Office Supply
$1,349.00 $1,349.00 1 Board Room Table Utah Office Supply
$1,992.00 $249 8 Board Room Chairs Utah Office Supply
Total: $5,916.00        


D. Lodge Furniture

Total Per Item Quantity Item Item Source
$5,600.00 $700.00 8 Recliners Sears
$400.00 $100.00 4 End Tables Sears
Total: $6,000.00        


E. Apartment Furnishings

Total Per Item Quantity Item Item Source
$1,260.00 $60.00 21 Bed Frames (double) Sears
$3,570.00 $170.00 21 Mattress (double) Sears
$2268.00 $108.00 21 Comfort Set (Full Size) Sears
$3,500.00 $175.00 20 Bunk Beds Sears
$600.00 $20.00 40 Bunk Bed Sheet Set Sears
$360.00 $6.00 60 Pillows Sears
$1,560.00 $39.00 40 Bunk Bed Comforter Set Sears
$15,2000.00 $380.00 40 Chests (6 drawer) Sears
$8,970.00 $1,794.00 5 Baby Crib and Bedding Set Sears
Total: $37,288.00        


F. Kitchen Appliances and Furniture

Total Per Item Quantity Item Item Source
$6,300.00 $300.00 21 Kitchen Range Sears
$6,300.00 $300.00 21 Refrigerator Sears
$16,800.00 $800.00 21 Stalking Washer/Dryer Sears
$11,550.00 $550.00 21 Dining Table & 4 Chairs R.C. Willey
Total: $49,950.00        


G. Transportation

Total Per Item Quantity Item Item Source
$14,000.00 $14,000.00 1 Used Honda Minivan Forest Auto
Total: $14,000.00        


H. Insurance

Total Quantity Item Item Source
$8,700.00 1 1 Year Liability and 12 month loss of rent State Farm
$1,200.00 1 Workmans's Compensation State Farm
Total: $9,900.00      

 

I. Salary

Total Item
$60,000.00 1 Year Salary for 3/1 Employee: House Mother, Apt. Manager, Sucess Coach
$20,000.00 Estimate for a year benefits for the employee
Total: $80,000.00  


J. Utilities
$ 500 Deposit Springville City (Business)
36,000 Year 3,000 a month for Lodge and Apartments Springville City
1,776 Year 148 a month Trash Pick Up BFI

$ 38,276 Total


K. Telephones and Internet
$ 4,920 410/mo 12 months Four Phones and INTERNET. Quest

$4,920


L. Zoning
$ 975 1 zoning study Springville City

$975 Total


Totals:

Totals
A: $4,200,000.00
B-L: $247,489.00
*Grand Total:
$4,347,489.00


*Does not include Day Center Building, landscaping, fence, gate, engineering and building permits.

As of May, 2009