The Merchants Fund (TMF) is a Philadelphia based business that has provided support to local business owners in the form of grants and coaching since 1854. Over 1135 grants worth $10MM since 2007. Our mission as consultants was to strategise ways to improve the post grant experience of merchants.
ROLE
Product Design Lead, Design Strategist
LOCATION
UPENN, Philadelphia PA
Applicants apply for a TMF stabilisation grant and wait to receive grant approval. Post approval, grant money is distributed to grantees, along with access to coaching from trained professionals on the TMF team. We found that there is a drop-off point after grantees receive money, where they take funds to their business but do not use any coaching resources. We believe that TMF needs to alter their approach to ensure merchants take advantage of these important resources.
Grantees lack incentives and structure to tap into TMF’s resources.
These challenges were exacerbated by the COVID-19 pandemic that removed the emotional connection aspect of the grant program. Merchants struggled to keep their business afloat, which made it even harder to make time to use TMF coaching resources.
An update to the Beyond the Grant coaching program that is…
“I would like to see [more] when it comes to executive coaching… I want resources catered to who I am as a business owner [which] would be more beneficial to me personally.”
“[I’ve connected with] one or two… we’re in the same category of business… we tend to connect with one another on a regular basis and see how things [are going.]”
Grantees require greater engagement incentives for Beyond the Grant coaching to be fully utilized and seek structured ways to leverage TMF’s network.
Two tier improvement to the Beyond the Grant coaching program, to be implemented simultaneously and accessible to all grantees.
progress guarantee with multiplier
business support network + community
Incentivizes merchants to regularly attend coaching by rewarding them for their efforts. A monthly subscription alternative to the existing coaching program access.
We believe that money spent on your business always finds its way back to you, and this program illustrates just that.
Merchants pay a $50 deposit per month to gain access to unlimited, curated coaching, all while earning interest on their deposit. The program is mapped into quarters so merchants have to option to enroll in a 3, 6, 9 or 12 month cycle. During each quarter, merchants are expected to participate in at least one event, and TMF checks in at the end of each quarter to confirm interest and perks earned.
The merchant then has the option to drop out of the program and receive payout, or move onto the next quarter to increase interest and perks. After 3 months, merchants can receive a payout with 25% interest, after 6 months a return of 50%, after 9 months a return of 75%, and finally a full 100% return after the longest term of 12 months.
If a merchant drops out of the program before achieving the next milestone, they will fall back to their previously achieved milestone. For instance, if a merchant achieves a 6 month milestone and moves to month 7, and then decides to drop out, they will receive the $450 month 6 payout, but lose the month 7 deposit.
Merchants that complete the full 12 month cycle will receive a certificate of achievement signed by the executive director and the company business coach.
Merchants
Financial incentives, Professional development, Networking opportunities, Recognition & credibility
The Merchants Fund
Engage with local businesses, Continuous program improvement, Showcase success stories, Attract new funding
The City of Philadelphia
Reduced business attrition, Community engagement,
Strengthens local economy
Leverages pre-existing behavior on familiar social media channels. The collective leverages the existing cohorts of the fund and turns them into a much needed network to form meaningful connections and advance businesses.
Takes shape in business interest groups between merchants, formed based on geography such as shared proximity (zip code), industry such as type of business offering, and/or affinity group such as shared values and backgrounds.
The Merchants Collective alongside the Learn & Earn Program can be incorporated into TMF offerings immediately. In the immediate term they can create the much needed network and community that TMF has sought to implement in their grantee program. In the long term, both solutions can help drive community development and TMF success in future cohorts.
Merchants
Adaptation through collective knowledge, Resource sharing, Community support & network building
The Merchants Fund
Enhanced impact of initiatives, Sustaining engagement & visibility, curated resources based on business type
The City of Philadelphia
Economic stability & growth, Community cohesion & public confidence, Policy development & implementation
with existing resources to guide next steps.
“I really enjoy the idea of the [Collective]. It shifts sentiments from a lone, ‘heroic’ individual to entrepreneurship as a collective endeavor.”
