Megaphone Magazine Street Corner Media Foundation 121 Heatley Avenue Business Plan for Vancouver BC V6A 3E9 Megaphone Magazine 604. 678. 2800 | MegaphoneMagazine.com

June 2012 Table of Contents

Executive Summary ...... 4

The Need for Meaningful Employment ...... 6

Demand for Street Newspapers ...... 7 International Street Papers ...... 8 Spare Change ...... 9 Hope in Shadows ...... 9

Our Business Model...... 10 Social Mission and Goals ...... 10 How We Achieve Our Goals ...... 10 Our Vendors ...... 11 Who Buys Megaphone Magazine ...... 11 Our Revenue Model ...... 12

Megaphone’s Operations ...... 13 Megaphone Magazine ...... 13 Create and Source Content ...... 13 Edit and Layout ...... 14 Printing ...... 14 Distribution ...... 14 Outcomes Achieved ...... 16 Vendor Training and Support ...... 17 Vendor Meetings ...... 18 Vendor Outings ...... 18 Hiring a Vendor Coordinator ...... 18 Outcomes Achieved ...... 19 Community Writing Workshops ...... 18 Outcomes Achieved ...... 19 Financial Projections ...... 21 Key Investments ...... 21 Projected Revenues ...... 22 Megaphone Magazine ...... 22 Vendor Training and Support Program ...... 23 Writing Workshops ...... 24

Our Staff and Board Team ...... 25 Core Staff Team ...... 25 Board of Directors ...... 26

Appendix A – Vendor Profile ...... 28 Appendix B – 2009 Megaphone Reader Survey ...... 29 Appendix C – 2009 Megaphone Focus Groups ...... 30 Appendix D - 2010 Distribution of Vendor Sales by Neighbourhood ...... 31 Appendix E - 2010 Megaphone Magazine Statistics ...... 32 Appendix F – Financial Projections (2011 to 2013) ...... 33 Appendix G – Megaphone Media Kit for Advertisers ...... 34 4 | Business Plan for Megaphone Magazine

Executive Summary

Administered by the non-profit Street Corner Media Foundation, Megaphone gives a voice and an economic opportunity to homeless and low-income people. Megaphone’s primary project is Megaphone Magazine, which is sold on the streets of Vancouver by homeless and low-income vendors—a population that has difficulty entering the labour market. Vendors buy each issue for 75 cents and sell them for a suggested donation of $2. By selling the magazine, vendors are able to gain stability, a sense of pride, and can become financially self-sufficient.

Megaphone Magazine

Vendor Support Community and Training Writing Workshops

Selling Megaphone has helped me build my confidence and made “ me feel proud of myself. I like selling the magazine because I can get out of the apartment and do something I really love. And I like talking and interacting with my clients and people on the street.”

Bob, Megaphone vendor

Our Vendor Training and Support, and Community Writing Workshop programs build community connections that help marginalized people address their barriers—whether it is homelessness, addiction or mental or physical illness. Megaphone currently has about 30 full and part-time vendors and a bi-weekly distribution of 2,500 copies per issue. Produced by professional journalists, the magazine features content that raises awareness about social justice-related issues. It also includes stories and poems from Megaphone’s writing workshops, which gives marginalized writers an opportunity to have their voices heard across the city. Megaphone has published the work of more than 200 marginalized writers, artists and photographers. May 2012 | 5

Over the next three years, Megaphone plans to grow to 60 vendors and a circulation of 6,000 issues per issue. This will allow our homeless and low-income vendors to earn a combined $195,000 a year. The increased revenue to help vendors become more financially secure and give them the confidence to address their barriers.

*actuals Vendor statistics 2011* 2012 2013 2014 Circulation (per issue) 2,000 2,500 4,000 6,000 Number of vendors 30 35 45 60 Total earned income for vendors (per year) $65,000 $81,250 $130,000 $195,000 Average vendor earned income (per year) $2,167 $2,539 $2,889 $3,250

To achieve the targeted increase in distribution and vendor profits, Megaphone has developed a three-year plan, which includes the following actions and investments:

•• Vendor recruitment and retention ºº Megaphone will hire a full-time vendor coordinator to build vendor capacity. They will help train vendors and improve their sales and financial skills. Having dedicated staff to work directly with vendors will give them the support they need to increase distribution. ºº Augment collaboration with Hope in Shadows in order to recruit calendar vendors to sell the magazine. In 2011 Megaphone moved into shared office space with Hope in Shadows and in 2012 will continue to streamline the two organizations’ vendor programs. •• Increasing demand in the product ºº Megaphone will hire a part-time editor to oversee the magazine to improve the quality of our award-winning publication, making it more attractive for readers and advertisers. ºº Increased support for the Executive Director, who provides management and support across all areas of the organization. This will allow for an increase in promotional activities and generate more awareness about magazine from the general public. ºº Continue to hold three public fundraising events every year. ºº Hire a part-time online editor to increase social media promotion. •• Expand the Community Writing Workshop program ºº Megaphone will increase the number of writing workshops in order to provide more opportunities for marginalized people to have their voices heard and increase the quality of the magazine. ºº Continue to publishing an annual special literary issue, Voices of the Street. This will increase awareness about writing workshop program and increase circulation for vendors.

In the first four years of our existence, Megaphone has proven to have a strong 6 | Business Plan for Megaphone Magazine

record in providing a voice and economic opportunity for our homeless and low- income vendors. With increased investments, homeless and low-income Megaphone vendors will continue to their earned revenue increase every year. Megaphone is based on a model that succeeded in the past in Vancouver, is successful around the world today, and will continue to change the lives of marginalized people in the future.

The Need for Meaningful Employment

The need for a strong street paper in Vancouver has become particularly pronounced as the city’s homeless population has more than doubled over the past decade and unemployment in the Downtown Eastside, where Megaphone and the majority of its vendors are based, is more than double the municipal average. According to Metro Vancouver’s 2010 homeless count, there are 2,623 people in the region sleeping in shelters and on the street, up from 1,121 in 2002. In the Downtown Eastside, 62 per cent of the population is not participating in the labour market1. But since many of the area’s residents suffer from numerous health and addiction problems, employment opportunities need to be low-barrier and flexible. Because of their complex social and health issues, and negative stereotypes, many

When I was unemployed, I was panhandling and “ really not feeling too good about it. Now, since I’ve started selling Megaphone, I’m feeling much better about myself. It’s given me more of a sense of self- esteem. I feel like I’m being productive and that I’m a contributing member of a society.”

Lillian Fletcher, Megaphone vendor

1 The Globe and Mail, ‘Exclusive Demographic Picture,’ Feb. 13, 2009 May 2012 | 7 homeless and low-income people have difficulty getting other types of employment. Selling a street paper meets the vendor at their capacity level and gives them a legitimate form of employment. Often the only other sources of income for homeless and marginalized people are bottle binning, which can be too physically demanding for some, panhandling, which does not install a sense of self-empowerment, or illegal activities, which enforces their sense of alienation and disconnection and can lead to numerous legal troubles. Vancouver is home to the highest family and child poverty rates in Canada and has the highest rate of low-income population.2 It is also home to the Downtown Eastside, the country’s poorest urban neighbourhood. With the city’s low-income and homeless populations increasing every year, there is great need for a project like Megaphone to provide a consistent employment opportunity for marginalized people. Vancouver’s high poverty rates and lack of legitimate, low-threshold employment opportunities for the city’s large marginalized population makes Megaphone an accessible way for people to achieve gainful employment, increase their income and help put their life back on track.

“Street papers are the largest social enterprise in the world. They provide support and assistance to homeless and low- income people from Vancouver to Vienna and help raise awareness about the reasons why people live in poverty. They act as a bridge between communities and can literally change people’s lives—both the vendor and the customer’s.

Sean Condon, Megaphone executive” director

2 Federation of Canadian Municipalities, Mending Canada’s frayed social safety net: The role of municipal governments, March, 2010. 8 | Business Plan for Megaphone Magazine

Demand for Street Newspapers

International Street Papers The growth of street papers globally shows there is a great opportunity for Megaphone to share similar successes. According to the International Network of Street Papers (INSP), of which Megaphone is a member, worldwide circulation of street papers increased by 10 per cent in 2010. There are more than 115 members in INSP, spread across 40 countries, with combined monthly sales of 1.5 million (September, 2010). They have a combined monthly readership of 5.3 million, up from 4.8 million in 2009. While the styles of each paper vary, they all share the same mission of providing an employment opportunity for the homeless and low-income and raising awareness about poverty and homelessness issues. The success of street papers is particularly pronounced in North America, where circulation increased by 36 per cent alone. Nashville’s The Contributor increased its circulation of 12,000 in January 2010 to a print run of more than 100,000 in September 2011. In Los Angeles, Community Connection saw circulation quadruple to 10,000 in 12 months. Closer to Vancouver, Seattle’s street paper, Real Change, has more then 300 vendors and a weekly distribution of 20,000. Established in 1993, the paper has a visible presence in the city and a strong network of support from a wide range of communities. Montreal’s street paper, L’Itineraire, has more than 100 vendors and a monthly circulation of 15,000. Megaphone has maintained a close relationship with the regional network of street papers. Since 2007, Megaphone executive director Sean Condon and volunteers have attended INSP conferences in Bergen, Norway and Melbourne, Australia and North American Street Newspaper Association (NASNA) conferences in Portland, Denver, Chicago and Nashville. The conferences offer Megaphone an opportunity to learn best practices from other street papers and connect with the broader movement. Condon has also been on the NASNA board of directors since 2009 and the organization’s co-chair since 2011. May 2012 | 9

Spare Change Vancouver’s first street paper, Spare Change, was published between 1992 and 1998. It had roughly 50 vendors and a monthly circulation of 10,000. Vendors bought each issue for 50 cents and sold them by donation. Spare Change’s success in the 1990s shows there is a market for a street paper in Vancouver and that the city does have the capacity to support it (both in terms of vendor population and customer sales).

Hope in Shadows Along with building off the success of Vancouver’s first street paper, Spare Change, the Hope in Shadows calendar shows that a similar project can be successful in the city. Hope in Shadows offers homeless and low-income people the opportunity to buy a calendar for $10 and sell them on the streets of Vancouver for $20. The vendor keeps all profits. In 2011 Hope in Shadows trained more than 200 vendors, who distributed roughly 14,500 calendars. Megaphone works closely with Hope in Shadows—working to strengthen and streamline both organizations’ vendor program. In 2011 Megaphone moved into shared office space with Hope in Shadows and Pivot Legal Society and coordinates vendor meetings and policy with Hope in Shadows staff. Working more closely together has helped Megaphone recruit more vendors and provide a stronger vendor program that offers more comprehensive training and supports. The success of the calendar, which consists of photographs taken by Downtown Eastside residents, both in terms of publicity and sales, shows that there is a strong capacity in Vancouver for a product to be sold on the streets of Vancouver by homeless and low-income vendors. However, the calendar is a seasonal product (sold between October and January) and its success shows that there is a need for a consistent year-round product, like a street paper, for homeless and low-income vendors to sell. 10 | Business Plan for Megaphone Magazine

Our Business Model

Social Mission and Goals Megaphone’s mission is to provide economic opportunities and a voice to homeless and low-income people while building grassroots support to end poverty.

We have three primary goals: 1. Provide people who are homeless or living in poverty with sustainable opportunities for self-employment. 2. Provide opportunities for people who are homeless or living in poverty to express their views, opinion and creative ideas. 3. Achieve a self-sustaining economic model for the magazine and provide opportunities for growth.

How We Achieve Our Goals Megaphone’s primary product is Megaphone Magazine, a high quality street newspaper. Megaphone also provides training and support for our vendors and weekly writing workshops for marginalized writers.

Goal How we achieve this How we measure this

• Publish a high quality street Provide people newspaper for vendors to sell • Number of vendors who are homeless • Expand newspaper sales to or living in poverty additional communities in • Amount of income earned with sustainable Greater Vancouver by vendors opportunities for self- • Number of people trained employment. • Increase training opportunities for our vendors

• Delivery weekly writing • Number of writing Provide opportunities workshops for marginalized workshops provided for people who are writers in the Downtown homeless or living in Eastside • Number of workshop participants poverty to express • Provide opportunities for their views, opinion marginalized writers to publish • Number of works from and creative ideas. their work – in the magazine marginalized writers and and/or online artists published

• Amount of earned revenue Achieve a self- • Publish a high quality street sustaining economic newspaper for vendors to sell • Percent of expenses model for the • Increase earned revenue from covered by earned revenue magazine and provide the magazine • Amount received in grants opportunities for • Cultivate relationships with growth. • Amount raised through funders and individual donors donations May 2012 | 11

Our Vendors In accordance with our mission, we provide training and support for homeless and low-income individuals, primarily based in Vancouver’s Downtown Eastside, to become vendors – 80% of our vendors are vulnerably housed and 15% of those are homeless.3 Many of the individuals Megaphone supports are also addressing challenges such as addiction, mental and physical illness, and having a criminal record, which can be significant barriers to traditional employment. By selling a high-quality magazine that addresses the issues and conditions in which they live, vendors can earn both the capital and self-esteem they need to start addressing their barriers.

Who Buys Megaphone Magazine Regular readers said the main reasons they purchased the paper was, firstly, to support the vendor and, secondly, to get another perspective on the news. More than 80% of people who buy the magazine do so to support the vendor. However, two-thirds also purchase the magazine because they see it as an alternative media source. Our typical reader is a female, with a college or university degree and an income over $30,000 a year.4 While Megaphone Magazine is sold by vendors across the City of Vancouver, and now North Vancouver, more than 50% of our vendors sales occur in Vancouver’s Westside and Downtown Vancouver.5 “My relationship with Megaphone started when they published my story [about trying to exit the sex trade]. It was really awesome. It really opened some doors for me, really turned my life around. I’m healthier, I don’t have to work on the street as much and I don’t have to face police negligence or brutality as much. Megaphone helps me to be awake during the daytime, buy some beads, make some jewelry, sell magazines, make a profit and not have to work on the street. Suzanne Kilroy, Megaphone vendor” 3 See Appendix A – Vendor Profile 4 See Appendix B – 2009 Megaphone Reader Survey and Appendix C – 2009 Megaphone Focus Group for more details 5 See Appendix D – 2010 Distribution of Vendor Sales by Neighbourhood 12 | Business Plan for Megaphone Magazine

Our Revenue Model In order for Megaphone to publish and distribute Megaphone Magazine and deliver our vendor training and support program and writing workshops, we have a model based on earned revenue from the magazine and revenue from grants, donations and fundraising events. In 2011, the sources of revenue to support our operating costs of $105,940 was as follows:

Earned revenue from the magazine covered 38% of the total costs of operating the organization in 2011. May 2012 | 13

Megaphone’s Operations

Megaphone delivers three inter-related programs: 1. Megaphone Magazine: A 24-page street newspaper that is published every two weeks and features articles, creative writing, photography from professional journalists, Megaphone vendors and homeless and low-income people. Vendors throughout the City of Vancouver and, recently, the City of North Vancouver sell the publication. 2. Vendor Training and Support: Before selling Megaphone, vendors undergo a one-hour training session, facilitated by a Megaphone vendor coordinator, in order to learn best practices, ground rules and sales tips. After orientation, they are given further training and supports to help them increase their sales. 3. Community Writing Workshops: Megaphone runs a series of community writing workshops in the Downtown Eastside and Vancouver’s inner- city. Megaphone facilitators run one- to two-hour sessions and work with marginalized writers to help them write about their lives.

Megaphone Magazine Megaphone Magazine’s mission is to produce a publication with strong investigative journalism, creative writing and high-quality design. The product needs to appeal to a wide-range of customers in order for our vendors to have a better chance of selling the magazine. The stronger the publication is, the more likelihood that vendors will be able to attract repeat customers. Megaphone has 4 distinct steps as a part of its magazine operations:

Create and Edit and Source Content Layout Print Distribute

Create and Source Content Professional journalists and photographers are contracted to write and take photos for news, arts and entertainment features, humorous horoscopes and cartoons. They either volunteer their work for the magazine or are paid a freelance stipend. With a syndication agreement with the David Suzuki Foundation, the magazine also features a regular column written by famed environmentalist, David Suzuki. Megaphone allocates an average of four pages in each issue for marginalized writers and artists. These writers often write about what it’s like to live with an addiction or a mental illness or what it’s like to be homeless. This type of content, which is generated from our community writing workshops, helps readers gain a better understanding of issues surrounding poverty and break down stereotypes. It also gives the writers an outlet to express themselves and, by having their story published, can be a tremendous boost to their self-esteem. 14 | Business Plan for Megaphone Magazine

Vendors are given a $25 stipend and 10 free copies of the magazine for published work. Low-income and homeless writers are paid a $25 stipend for published work. The main purpose of the content is to raise awareness about social issues and to give marginalized people a voice. Feature investigative journalism stories have looked into such issues as slumlords in the Downtown Eastside, why British Columbia has the highest rate of child poverty in the country, and how a street soccer program in Vancouver helps the homeless. Edit and Layout Once the articles and photos are submitted, Megaphone’s volunteer editors, who are also professional journalists, edit each story. The content is then sent to a volunteer team of professional designers, which produces the magazine. Megaphone plans to increase the quality of its writing and journalism by hiring a managing editor, expanding its writing workshops and creating a policy to compensate journalists and designers who contribute to the magazine. By offering competitive wages, Megaphone will be able to build on its award-winning content and offer its vendors a stronger product to sell to their customers. Printing Megaphone Magazine is printed at International Web Express in Coquitlam, BC, which supports the organization by giving Megaphone a discounted rate. In order to ensure that the magazine’s ecological footprint is minimal, it is printed on 93 per cent wheat stock paper with vegetable ink. Distribution IWE delivers the magazine every other Friday to Megaphone’s Downtown Eastside office, where vendors can purchase their copies. The magazine is also delivered to the UPS Store in downtown Vancouver and the John Braithwaite Community Centre in North Vancouver where staff volunteer as distribution hubs for Megaphone vendors. Megaphone vendors are given a legal business licence from the City of Vancouver and the City of North Vancouver and know that they are providing a respected service to the public by selling the award-winning publication. Working for Megaphone gives them a sense of pride and a boost to their self-esteem. Megaphone has approximately 30 vendors located throughout Vancouver, with the highest number and concentration of vendors and correspondingly, the highest sales in Downtown and Kitsilano, which together account for over 50% of Megaphone Magazine’s sales. May 2012 | 15

Figure 1: Megaphone vendor map Map below Full-time vendor Increase sales in neighbourhood through existing vendors Part-time vendor Neighbourhood with high vendor sales Casual vendor Establish vendor presence in neighbourhood The following map highlights the neighbourhoods we will focus our efforts. 16 | Business Plan for Megaphone Magazine

I like the fact that I’m actually doing something to earn my money rather than begging. I think that it’s positive, it gives me some self-esteem and it also gives me the chance “ to interact with people and practice my social skills, which is important for work also.” Joe Kryklywy, Megaphone vendor

Outcomes Achieved Megaphone provides employment opportunities for approximately 30 vendors and a total estimated income of $65,000 for these vendors. We are projecting to grow to 60 vendors by 2014, based on vendor figures from Megaphone Magazine’s predecessor, Spare Change and Hope In Shadows calendar project.

Spare Change Hope in Megaphone Megaphone Measure (Vancouver’s Shadows street paper (2011 Actuals) (2011 Actuals) (2014 Target) 1992-98) Number of Consistent Vendors 50 (average) 80 (consistent) 30 60 10,000/issue 2,000/issue 6,000/issue Distribution (monthly) 14,500/year (bi-weekly) (bi-weekly)

Megaphone will achieve this growth through two strategies: 1. Focusing on turning our part-time and casual vendors into full-time vendors in the West End, neighbourhoods surrounding Commercial Drive, Cambie and Broadway, and in North Vancouver. This will leverage and build from our existing presence in these neighbourhoods. 2. Adding new full-time and part-time vendors in neighbourhoods where we currently do not have a presence and have regular readers that live in these areas such as along Main Street (e.g. Mount Pleasant) and East Vancouver (see Appendix B for statistics on where our readers live from our 2009 survey). Areas highlighted in orange represent those areas where we will support our existing part-time and casual vendors to increase their sales. Areas highlighted in yellow represent new areas for Megaphone vendors. In terms of content, Megaphone Magazine has been recognized through several awards. In 2009, Megaphone won ‘Best Photograph’ and ‘Best External Feature Story’ at the International Network of Street Papers (INSP) awards ceremony in Bergen, Norway. The same year, a feature article, entitled, ‘Living with Slumlords’ won the Rafe Mair UBC School of Journalism Award. And in 2010, Megaphone won ‘Most Improved Street Paper’ at the North American Street Paper Association (NASNA) award ceremony. May 2012 | 17

Vendor Training and Support Before selling Megaphone, vendors undergo a one-hour training session, facilitated by a Megaphone vendor coordinator, in order to learn best practices, ground rules and sales tips. They then sign a City of Vancouver-approved Code of Conduct and are given a photo identification badge, a copy of Megaphone’s City of Vancouver business licence and 10 free starter copies. In addition to enhancing individual financial capacity through sales, vendors build employable skills like customer relations and sales experience that can help them move onto other types of employment or improve their magazine sales. Vendors who show that they consistently go out and sell the magazine are allocated designated turf. By having protected turf, vendors are rewarded for their work and have the assurance that the area and customers they have worked hard to nurture will be secured. Vendors are also given Megaphone hats, T-shirts, bags and free copies. Vendor Meetings Vendors attend regular monthly meetings where they can provide feedback and offer ideas on how the program is running. The meetings give them the opportunity to make administrative decisions on certain issues and feel empowered about how the program is run (vendors get 10 free copies of the magazine for attending).

Specialized Vendor Training Sessions On top of the orientation sessions, Megaphone runs specialized training sessions with outside experts facilitating the sessions during the course of the year. The experts focus on key sales issues, such as body language, sales strategies, conflict resolution, and financial literacy. These additional training sessions give vendors the opportunity to refine their skills and improve their sales strategies.

“I really had no outlet until I started selling the paper. It gave me the chance to interact and socialize with people and to turn my life around. The people at the street paper made me feel good about myself. They treated me like a worthwhile person so I started right then and there and have been doing it ever since. Danny Maloney, ” Megaphone vendor 18 | Business Plan for Megaphone Magazine

Vendor Advisory Board In 2011, Megaphone and Hope in Shadows established the peer-run vendor advisory board. Vendors themselves elect three vendors to act as their representatives to staff and sit on an appeal board that can overturn vendor disciplinary decisions. Elections occur every three months. The board empowers vendors in the organization’s decision-making and develops leadership skills amongst vendors. It also ensures that vendors are represented and their voices heard within the organizations. Vendor Outings Megaphone also arranges outings and dinners for vendors. Each summer the Vancouver Canadians give Megaphone tickets for a baseball game and allow a vendor to throw out the ceremonial first pitch. Megaphone also arranges softball games for vendors and volunteers. And every Christmas Megaphone and Hope in Shadows hold an annual Christmas dinner for the vendors. The outings, meetings and training sessions also give vendors the opportunity to socialize with their peers and build a supportive community and network. They encourage and foster cooperation and dispel notions of competitiveness and help improve vendors’ social skills. Hiring a Vendor Coordinator Megaphone plans to hire a vendor coordinator in 2012 in order to increase its outreach with vendors. By having a full-time staff position dedicated to vendor management, Megaphone will be able to focus on increasing more vendors to the program, improve vendor sales skills and strategies and increase the social well- being of the vendors. With an annual salary of $30,000 in 2012, $35,000 in 2013, and $38,000 in 2014, the coordinator will be able to work consistently and directly with the vendors. The coordinator’s key responsibilities will be holding training sessions in new areas of the city, develop new sales locations, work directly with vendors to improve the sales records of part-time and casual vendors, and direct vendors to other necessary social service agencies for personal issues. Based on the organizational structure of other street papers, the vendor coordinator is essential to the success of the street paper—giving the vendor program the key, central staff member that nurtures the vendors and directs them to both professional and personal success. May 2012 | 19

Outcomes Achieved Megaphone has provided training and support to over 250 individuals through vendor training workshops and staff and volunteers who work directly with the potential vendors. This broader level of outreach has resulted in our current level of 30 individuals who have become Megaphone vendors. Community Writing Workshops Megaphone runs a series of community writing workshops in the Downtown Eastside and Vancouver’s inner-city. Sponsored by PHS Community Services Society and the City of Vancouver, Megaphone facilitators run one- to two-hour sessions and work with writers to help them express their personal opinions or to write about their lives. There are six weekly workshops:

•• Rainier Hotel – a women’s social housing hotel in the Downtown Eastside •• The Gathering Place – a low-income and homeless community centre in downtown Vancouver •• Onsite – the rehabilitation/detox centre above Insite, Vancouver’s safe- injection site •• LifeSkills – a Downtown Eastside community centre •• Megaphone office – one for Megaphone’s homeless and low-income vendors; and another workshop for the Downtown Eastside community 20 | Business Plan for Megaphone Magazine

Last year Megaphone began a twice-a-year contracted citizen journalism class with SFU Woodward’s (four to six week programs) for marginalized writers to learn basic journalism skills and is currently in negotiations with other service providers to start workshops in other Downtown Eastside social housing buildings. The workshops give participants a therapeutic outlet to write about their struggles or express their views on what living in poverty is like. In each issue of Megaphone an average of four pages are dedicated to content produced from the writing workshops. Published writers are given a $25 stipend and receive a boost to their self-esteem knowing that their work has been published in a high-quality magazine that will be distributed across the city. Two articles from the writing workshops were republished in 24 Hours, the city’s largest commuter daily. Outcomes Achieved Since the workshops began in 2009, Megaphone has published pieces from more than 200 marginalized writers. The classes have included more than 250 different participants. Many of the workshop participants have little to no experience writing and have never been published. Megaphone plans to expand its successful writing workshops by three classes in 2012 by building on the relationship with PHS Community Services Society and the City of Vancouver. Megaphone will also work at forming new contracts with social service providers. The new classes will help solidify the program as the biggest of its kind in Vancouver, provide more content for the magazine and help more marginalized writers express themselves and have their voices heard across the city.

Thank you to all the people who make this workshop possible. It is one hour a day that I can totally devote to myself. I never used to write; never knew quite how. “ After learning all kinds of writing styles, I find myself now releasing myself through a simple pen and paper. To someone like me, especially at the state of life where I am now, having extra outlets for releasing and moving forward are the very key to learning to live all over again. I love attending Megaphone’s writing group.”

Sarah Ouellette, Rainier and Onsite workshop participant May 2012 | 21

Financial Projections

For Megaphone to achieve the goal of providing employment opportunities for up to 60 homeless and low-income people in the city by 2014 and we project that our operating budget will increase to $211,144.

Appendix F includes the detailed financial projections for 2011 through 2014.

Key Investments For Megaphone to achieve our social mission and goals, we are actively increasing our investment in Vendor Training and Support and Community Writing Workshops, while continuing to increase the capacity of Megaphone Magazine to generate earned revenue through sales of the magazine and advertising. Our most significant investments over the next three years will be: *Actuals Investment 2011* 2012 2013 2014 Increased Executive Director salary. $18,000 $30,000 $35,000 $40,000 Hire a Vendor Coordinator. 0 $30,000 $35,000 $38,000 Hire a part-time editor and provide increased stipends for $14,000 $22,500 $29,000 $34,000 writers and designers.

As the magazine grows, core organizational expenses will also increase. Megaphone has moved into a bigger office space with Hope in Shadows and Pivot Legal Society and will see increased costs in rent, telephone and internet. Megaphone also expects bookkeeping, mail and office expenses to rise over the course of the next three years. 22 | Business Plan for Megaphone Magazine

Projected Revenues

Megaphone Magazine Megaphone anticipates that the earned revenue generated from the magazine will cover the majority of the magazine’s operating costs, increasing from 62% in 2010 to being near or better than break even for 2011 onwards.

As Megaphone approaches break even for our core magazine operations, that segment will no still longer require some small grants and new funding sources in addition to our earned revenues. *Actuals Revenue Source 2010* 2011* 2012 2013 2014 Vendor sales $19,716 $34,947 $42,250 $52,000 $62,500 Subscriptions $375 $1,029 $1,500 $1,600 $1,700 Advertising $10,911 $10,192 $11,500 $13,000 $13,000 Grants/New funding $7,000 $7,000 $7,000 $7,000 $7,000 TOTAL $39,024 $55,909 $67,250 $80,100 $92,200 May 2012 | 23

Earned revenues will increase by expanding our vendor base to increase vendor sales. Expansion of our vendor network will generate increases in subscription and advertising revenue as well. Megaphone will target corporations and unions for support and will offer advertising in the magazine as a way to publicly acknowledge their support. This is supported by our media kit for advertisers (see Appendix G). Megaphone has already developed a donor and advertising relationship with Finavera Renewable Resources, Vancouver Community College and CCEC and will build on these connections to increase corporate support. Megaphone has a history of being able to secure grants for the production of the magazine. In 2008, we received $5,000 from Vancity to rebrand the magazine as Megaphone and in 2010 received $7,000 from the City of Vancouver to publish a special literary issue (Voices of the Street). Megaphone expects to be able to secure grants for the magazine from other government grants (such as the Canadian Periodical Fund – which gives grants to the Montreal street paper) and arts-based organizations (BC Arts Council) in the future. Vendor Training and Support Program The vendor training and support program is critical to our ability to meet our goal of providing employment opportunities for homeless and low-income individuals. This program is financed through grants and donations from both individuals and organizations (corporations, unions, etc.). Megaphone runs two fundraising campaigns (Fall and Winter) for the vendor program. The call for donations is placed in the magazine, online and through direct mail. Each campaign also has an associated event – for the Fall Campaign, the Victory Square Block Party at the beginning of September and for Winter—our Night of Joyful Voices event—a concert and comedy event held at Café Deux Soleils on Commercial Drive. Based on our history for these campaigns, and our investment in time to execute these campaigns, we are confident that they will continue to provide a strong source of revenue: *Actuals Revenue Source (recurring only) 2010* 2011* 2012 2013 2014

Grants $18,998 $11,125 $25,000 $25,000 $10,000 Donations – Fall campaign $3,005 $4,215 $5,000 $6,000 $7,000 Donations – Winter campaign $3,923 $6,240 $6,500 $7,000 $7,500 Victory Square Block Party (net) $1,745 $1,442 $3,400 $3,900 $5,400 Night of Joyful Voices Event (net) $2,645 $3,798 $4,000 $5,000 $5,250 New funding sources $25,000 $25,000 $25,000

TOTAL $38,784 $31,558 $71,900 $74,900 $63,150 24 | Business Plan for Megaphone Magazine

In addition to a steady recurring stream of grants of $15,000, Megaphone expects to be able to build on our existing fundraising campaigns and events to raise over $25,000 from these sources by 2014. We have an established track record of being awarded grants for the vendor program. In 2009, 2011 and 2012 Megaphone received $10,000 from Vancity’s community grants fund for the vendor program. In 2012 Megaphone received a two- year $30,000 from Vancity’s Community Investment Fund to invest in the vendor program. Since 2009, the program has also been awarded grants from Building Opportunities with Businesses (BOB), enterprising non-profits (enp) and the City of Vancouver. Following on our success in acquiring grants in the past and considering the key investments required to effectively deliver our vendor training and support program, we have set an annual target of $25,000 revenue from new funding sources starting in 2012. Writing Workshops Through contracts with the City of Vancouver, PHS Community Services Society and SFU Woodward’s, Megaphone has been able to expand the workshops and ensure that facilitators, writers and the organization are all compensated for their work. *Actuals Revenue Source 2010* 2011* 2012 2013 2014 Contracts with community partners (PHS, SFU) $4,286 $20,000 $15,000 $18,000 $20,000 Grants $6,500 $7,425 $8,000 $8,500 $9,000

Donations: Spring campaign $500 $6,416 $6,500 $7,000 $7,500

Poetry Reading event: Waldorf - $1,103 $1,300 $1,800 $2,250

TOTAL $11,286 $33,819 $30,800 $35,300 $38,750

Megaphone has established a relationship with PHS to run the workshops since 2009 and now receives $75 per class. SFU Woodward’s provides $4,000 to $6,000 for the citizen journalism classes. With a $10,000 grant for the workshops in 2010 and a $1,500 to pay writers over two years, Megaphone has formed a strong relationship with the City of Vancouver over this project and is working with City staff to confirm continued funding. We have also created a strong relationship with a Vancouver-based foundation (that wishes to remain anonymous) that has donated $5,000 for the writing workshops in both 2010 and 2011. To supplement these contracts and grants, Megaphone holds an annual spring fundraising campaign, which includes a poetry reading event at the Waldorf Hotel. Together they raised over $7,000 in 2011. Megaphone anticipates building upon the momentum established from this successful campaign to raise $10,000 by 2014. Along with continuing to work with existing funders, Megaphone will reach out to new foundations and organizations for possible grants; including the Vancouver Foundation, the Canadian Periodical Fund, the Homeless Partnership Initiative and the Canada Council for the Arts. May 2012 | 25

Our Staff and Board Team

Megaphone has a strong and qualified staff and board. Many have been with the organization since the city’s street paper revival in 2006. It also has a diverse and professional board of directors that oversees the direction of the organization and offers guidance to the mostly volunteer staff.

Core Staff Team Sean Condon Executive Director Sean brings over 12 years of journalism experience to Megaphone. A graduate of the School of Journalism at Carleton University, Sean is a former senior editor with Adbusters and his work has been published in Vancouver magazine, This magazine, The WestEnder and The Tyee. He has been running Vancouver’s street paper since 2006 and successfully oversaw the paper’s transition from Street Corner to Megaphone. In 2011 Condon became co-chair of the NASNA board of directors and helps organize street paper conferences, fundraise for the organization, provide member services, and give advice and assistance to other street papers in Canada and the United States. Kevin Hollett Managing Editor Kevin Hollett has been an editor with Megaphone since 2008 and oversees the magazine’s editorial direction. Having graduated from Carleton University in 2002, Kevin has worked as a manager for Scotiabank and a communications specialist for the Better Business Bureau of Mainland BC (BBB). He is currently the communications coordinator at BC Centre for Excellence in HIV/AIDS. Rhonda Shanks Writing Workshop Coordinator Rhonda Shanks received her MA in English from UBC in 2009 and has been teaching English and ESL/EFL for more than a decade, both in Vancouver and Asia, where she taught Academic Writing for Thompson Rivers University’s World program. She facilitates Megaphone writing workshops at the LifeSkills centre as well as vendor writing workshops. She has shared her poetry at readings and slams around Vancouver and had pieces have been published in Quarter Moon Quarterly, The Peak, and Ricepaper. Joanne Lee Art Director Joanne Lee studied at the Nova Scotia College of Art and Design University. She received the Society of Graphic Designers of Canada National Scholarship and the Joseph Beuys Memorial Scholarship from NSCAD U.She spent a year in Paris working at Le Moniteur Architecture, a monthly architecture magazine, and Ldesign, a graphic and product design bureau with Pippo Lionni. Currently, Joanne works at Phillips, Hager and North. 26 | Business Plan for Megaphone Magazine

Board of Directors In addition to Darren Atwater, Megaphone’s board of directors has the following individuals: Darren Atwater Board Director Darren has 19 years of experience in publishing newspapers in Vancouver. He was the founding editor of the Vancouver alt-weekly TerminalCity and publisher of Only magazine. Darren has been published in magazines in Canada and the United Kingdom and is currently the publisher of Snipe magazine in London, England. Bob Dennis Vendor/Board Director Bob has been a street paper vendor in Vancouver since 1993, starting with Spare Change and then carrying on with Street News and Street Corner. He sells Megaphone at the corner of Cambie and 19th and writes a regular column for the magazine about his own personal experiences and about the history of the Vancouver Police Department. David Lee Board Director, Treasurer David is a business consultant who has developed and led programs within and across the private, public and non-profit sectors of Canada and Australia. His focus over the last four years has been in local economic development, cross-sector stakeholder engagement and capacity-building of arts organizations and other non-profits, primarily in the Downtown Eastside. He has served as a director on the boards of the VIVO Media Arts Centre and the Community Arts Council of Vancouver. Helesia Luke Board Director, Vice-Chair Helesia co-owns Ethos Strategy Group, a firm specializing in public interest issues, and through her work has coordinated Metro Vancouver’s Homelessness Action Week for five years. Helesia is also on the boards of CCEC Credit Union and on the Steering Committee for First Call BC Child and Youth Advocacy Coalition. In 2003 Helesia was honoured to be a recipient of the Queen Elizabeth II Golden Jubilee Medal for community service. Amanda McCuaig Board Director, Vice-chair Amanda is a communications professional with a career in non-profit organization communications and marketing and currently works as Marketing Officer for the Museum of Vancouver. She has previously spent terms as a director of various organizations, including the Canadian University Press, Campus Plus, and the Society Promoting Environmental Conservation. She is also a contributing editor to Art Threat, a national online publication which examines art and politics. May 2012 | 27

Garvin Snider Vendor/Board Director Garvin is a Megaphone and Hope in Shadows vendor and vendor trainer. He has been participating in the Hope in Shadows calendar project as a photographer and vendor since 2006. A prolific activist in the Downtown Eastside, Garvin has volunteered for such organizations as Pivot Legal Society and the Anti-Poverty Committee. He has been featured in a number of documentaries, such as With Glowing Hearts. Peter Wrinch Board Director, Chair Peter is the Chief Executive Officer for Pivot Legal Society and oversees fundraising, information technology, volunteer management, governance, and financial controls. He has a Masters Degree from the University of Toronto’s Centre for Russian and Eastern European Studies where he studied revolutionary movements and propaganda. 28 | Business Plan for Megaphone Magazine

Appendix A: Vendor Profiles

Vulnerably housed: 80% Addiction issues: 52% Mental illness: 45% Criminal record: 33% Physical illness: 29% Homeless: 15%

100%

80%

60%

40%

20%

0% Vulnerably Addiction Mental Criminal Physical Homeless housed issues illness record illness May 2012 | 29

Appendix B: 2009 Megaphone Reader Survey 30 | Business Plan for Megaphone Magazine

Appendix C: 2009 Megaphone Focus Groups

Two focus group sessions were held in October of 2009. The first group consisted of people who were strong supporters of the magazine. The consistent message from this group was that they supported Megaphone because of the vendor (all of them knew their regular vendor’s name) and enjoyed the hyper-local content and articles and poems from our community writing workshops. The second group consisted of people who had seen a Megaphone vendor but had consciously decided not to purchase a copy. Their reasons for not supporting the magazine varied from not knowing anything about the project, fearing that the content would be too “depressing” (focusing only on poverty-related issues) and feeling uncomfortable about purchasing the magazine with the then-‘By Donation’ cover price. This second group gave Megaphone an honest understanding about our shortcomings and gave us some strong suggestions on how we can reach the city’s untapped market. May 2012 | 31

Appendix D: 2010 Distribution of Vendor Sales by Neighbourhood

Downtown: 32% Kitsilano: 20.2% Cambie Village: 12.5% Point Grey: 7.7% Granville Island: 7% Kerrisdale: 6.8% Commercial Drive: 5.5% South Granville: 5% Downtown Eastside: 3.3% 32 | Business Plan for Megaphone Magazine

Appendix E: 2010 Megaphone Magazine Statistics

Total vendor sales: 34,094 Total vendor comps: 2167 Total vendor issues: 36,261 Total reader comps: 14,507 Total issues: 50,768

Average vendor sales/comps per month: 3,022 Average issues distributed per month: 4,230

Number of trained vendors: 96 Number of regular vendors: 30 Average sales per vendor (year): 378 Average sales per vendor (month): 35 May 2012 | 33

Appendix F: Financial Projections (2011 to 2013) 34 | Business Plan for Megaphone Magazine

Appendix G: Megaphone Media Kit for Advertisers