How Switchpoint Built Thriving Micro-Enterprises — And How Your Nonprofit Can Too

JEN REED
Guest Contributor

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Nonprofits addressing homelessness often struggle with financial instability, reliance on grants, and public skepticism. What if your organization could generate its own revenue while empowering clients with job skills — and bring about a positive shift in public opinion?

Switchpoint didn’t wait for funding to change the game. They built small businesses that fuel their mission, create jobs, and prove nonprofits can be self-sustaining. 

Here are three steps they took to build thriving micro-enterprises:  

Step 1: Identify Business Opportunities Within Your Mission

Switchpoint started by asking a critical question: What resources and skills do we already have that could become income-generating businesses?

They saw the potential in resale and launched a thrift store that serves multiple purposes:

• Revenue generation to fund operations
• Retail job training for clients, giving them employable skills such as customer service, inventory management, and revenue management
• A shift in public perception: Customers saw individuals gaining work experience, not just receiving care.

Step 2: Expand Into Unexpected Industries

But they didn’t stop at resale. They saw an opportunity in the booming coffee industry and launched Switchpoint Coffee Co., selling packaged coffee online and through local stores. Why coffee?

• It’s a high-demand product with repeat customers.
• The business is scalable. They started small, tested the market, and expanded gradually.
• All profits go back into homelessness programs.

Step 3: Make the Leap to Self-Sufficiency

We all know it’s easy to stay in the grants and donations comfort zone. But nonprofits that create earned income models have greater long-term impact and stability. Here’s what Switchpoint learned in taking the leap:

• Start small, but start now. Switchpoint didn’t need a million-dollar investment. They started with what they had and grew based on demand.
• Training matters. Every micro-enterprise doubles as a job training program, ensuring that participants don’t just work but gain skills necessary for long-term employment.
• Public perception changes when nonprofits innovate. Donors, policymakers, and volunteers engage more when they see organizations creating solutions instead of just offering aid.

How Can Your Organization Build a Social Enterprise? 

Switchpoint’s success proves nonprofits don’t have to rely solely on grants and donors. They turned small businesses into engines that are driving change. How can you duplicate what they’ve done? 

Look at your resources. What could be monetized into a business?

• Do you have access to donated goods? If so, a thrift or resale shop could provide both funding and training opportunities.
• If physical space is an issue, consider pop-up sales, online stores, or a warehouse model.
• Think beyond traditional nonprofit ventures. Ask those you serve for ideas on consumer-driven, high-demand markets where small-scale entry is possible. Ideas include small-scale farmer’s markets; bicycle, small appliance or engine repair; and landscaping services. 
• If launching a full-fledged business seems daunting, start by partnering with local retailers to sell a simple, branded product.

Learn more about Switchpoint

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