My very first CharityVillage assignment in 2005, on social entrepreneurship, brought me to an old renovated fire hall in downtown Toronto. The headquarters of the story’s main subject, Eva Phoenix’s Print Shop, it’s also the home of a transitional housing facility for homeless and at-risk youth. Launched in 2002 and run by manager and sector stalwart Andrew Macdonald, the Print Shop – the enterprising arm of Eva’s Initiative – provides youth with training and careers in graphic communications while supplying its varied clients with top-notch commercial print services.<.p>

Impressed with Macdonald and the Print Shop’s vision, my radar has been strategically orientated in their direction ever since. But it was a recent e-newsletter that inspired a revisit. In 2008, the Phoenix Print Shop had achieved its goal of financial sustainability, the message read. With such an impressive achievement, one can’t help but wonder how they accomplished the feat and what we can learn from their success.

A stellar cast

According to Macdonald, one of the Print Shop’s greatest assets is its people. The seven, going on eight, staff members are not only deeply committed, they are skillful and well-aligned to their roles. That was a conscious decision, says Macdonald. “You can have great people but if the role is either not clear or just the wrong role, you can easily get into a rut,” he explains.

Strong business skills are vital too. One of the biggest obstacles impeding a social enterprise’s success is lack of business expertise, Macdonald says. Enter the Print Shop’s business manager. Having run her own print business for 10 years, “she knows what customers need and has technical skills that you can’t just pick up in a week, a month or even a year,” he adds. Meanwhile, the Print Shop’s graphic instructor taught for 25 years so his skill set is unparalleled as well.

Even the best team can’t fill all gaps, though. That’s where the Print Shop’s advisory board comes in. With thirteen volunteers representing the graphics industry, the business sector and Print Shop alumni, their support and knowledge have proven invaluable. Take the recently lauded acquisition of wide format image-setting technology. No doubt a significant investment that will help the organization meet the needs of a growing customer base, the equipment was sought and purchased thanks, in large part, to a key advisory board member who offered his knowledge and skills. “We worked closely with him to bring this thing to fruition,” affirms Macdonald.

Staying relevant

Of course, the recent investment has other implications. It shows the enterprise is keeping with the times and staying relevant. But how does the social enterprise balance its need to be self-sustaining with its desire to remain at the forefront of the printing industry, offering the most up-to-date technology? Very cautiously, says Macdonald. “We carefully reviewed the strategic direction of the enterprise about a year ago and reached out to the industry and our key advisors.” From those internal and external reviews came the decision to invest in wide format.

Thankfully, despite a “surface level churn,” the Print Shop doesn’t feel a panicked, constant need of upgrades. “But with a longer-term view, this is the direction we wanted to be in; this is where we see growth in the print industry,” says Macdonald. Bottom line, the Print Shop has thought carefully about labour market opportunities and feel they’ve aligned the enterprise to provide good prospects for youth to tap into.

Timing is key

It seems the Print Shop approaches upgrades in much the same way it pursues expansion: incrementally. Having just added a sales rep to their team, Macdonald is keeping the enterprise relatively small. Then again, physical limitations also help determine strategic decisions. Up until recently, their space was quite restricted, but a year ago they learned they would be getting access to the area next door. Instead of moving in immediately, though, they decided to focus on releasing their potential while staying put first. “We didn’t think we were maximizing our capacity of our current facility so getting a bigger one wasn’t going to naturally release that potential,” explains Macdonald. “We had work to do first.”

And work they did. In the past three years, the Print Shop managed to more than triple its commercial revenue and more than double its social performance – the number of youth participating and successfully getting work – all within the original physical parameters. So when they finally do move next year, the time will be ripe. When dealing with change, especially the transformational kind involving people’s lives, it’s all about timing, says Macdonald. “When you work with people with complex situations, it’s not easy to just ramp up; that could be detrimental to the service you’re offering.”

So while it makes sense to establish business objectives, setting targets on how many youth will become self-sufficient doesn’t. It’s not a one-size-fits-all scenario. “It takes a lot of energy and attention to individual situations,” Macdonald explains. Incremental, individualized objectives are healthy for social enterprises as they keep you focused on what’s important. “For us, that’s figuring out good, effective ways to help homeless and at-risk youth achieve self-sufficiency.”

Who are we?

The goal hasn’t been easy. One obstacle was determining their social enterprise model. Embedded within a larger social service agency and its initiatives, the Print Shop couldn’t pursue a model that suited everyone. “It took several years to figure out the best and most effective organizational structure,” offers Macdonald. Those efforts continue today. Even this past month, the organization underwent a performance appraisal process, identifying potential improvements. “When you’re doing something relatively new, you need to spend time testing it, learning from what went well, what didn’t, and then making sure you apply the learning.”

Application being the key word. “It’s easier said than done because you’re always thrown into the fray of the day-to-day pandemonium of customers wanting jobs and youth having their needs met,” Macdonald explains. It’s an especially challenging process when you’re balancing three bottom lines: business, social and environmental. How did they manage to overcome those challenges and still achieve sustainability? “Once again, it’s about persistence and having a team who’s there to work through these things, who have that consistency of experience, to learn and grow together and figure things out.”

Do you know who we are?

Another major obstacle – one they still face to a degree today – is lack of awareness. As a relatively small, new printing company, it’s not easy getting your name out. Neither is creating awareness among social programs working with youth to attract more students. But the shop has been working doggedly to overcome the challenges. Sending out e-newsletters and other promotional material has been one response. Another is the recent rigorous rebranding of the enterprise. An inaugural exercise involved talking to key stakeholders, getting feedback on what works, what doesn’t, and how they can better meet client needs. Even that initial process has been fruitful says Macdonald. “Just asking those questions has already reinvigorated their awareness of who we are and that we’re here.”

Pounding the pavement is another approach. And networking has proven invaluable. Case in point: after submitting an application to Social Venture Partners Toronto last year, the Print Shop became their first investee. The two-year commitment involves financial assistance and, more importantly, professional expertise. But that’s not all. Because the pool of SVP partners is ever-growing and networking opportunities abound, the Print Shop is able to tap into other resources too, resources that will hopefully assist in achieving their future objectives of one million dollars in sales and doubling the number of youth coming through their doors. In fact, taking into account the “awareness obstacle,” Macdonald surmises if it weren’t for these additional networks, reaching those goals would be impossible. “One has to get out there and promote what you’re doing and explain to people what you’re doing.”

Partnerships

Other important champions take the form of corporations. Telus, for example, has played a big part in funding the wide format technology, and Scotiabank has played a major role from the start. “One of the powerful things about social enterprises is the potential for cross-sector relationship,” states Macdonald. “They’re refreshing and invigorating in terms of accessing resources in ways one may not have envisioned if just stuck in a silo.”

But there’s something the Print Shop brings to the table that strengthens its attractiveness. When they ask for an investment, they can promise it will generate revenue within a reasonable time, ensuring they won’t have to return for another ask. “We’re walking the talk,” says Macdonald. “Just like we’re telling our youth you have to work at being self-sufficient, we’re doing that too.” Of course, by demonstrating progress and the ability to meet those objectives, corporates want to be associated with the Print Shop again. And that, says Macdonald, is the perfect scenario. Eliminating corporate partnerships altogether would put undue pressure on the business and force them to compromise social contributions. “As long as we’re sustainable, my goal is to maximize the opportunities for youth; that’s the balance.”

What about maintaining sustainability in today’s economy? It certainly won’t be easy. The printing sector is not immune to the downturn, another reason for the investment in new technology. “It gives us another tool in our toolbelt to potentially generate more sales revenue and help offset declining donor revenue,” says Macdonald. The organization is also discussing broadening the scope of graduate employment opportunities. The challenges ahead notwithstanding, Macdonald has his eyes firmly focused on the upcoming expansion and sustaining the level of momentum that he hopes will carry them into their new facility and toward their next objectives.

Elisa Birnbaum is a freelance journalist, producer and communications consultant living in Toronto. She is also president of Elle Communications and can be reached at: info@ellecommunications.ca.

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