What could be more entrepreneurial than being in the business of helping other entities to be entrepreneurial?
“We are a resource multiplier,” stated David Melancon, site director for the New Orleans ToolBank. “The organizations we support wouldn’t be able to work as effectively without the resources we provide them.”
The ToolBank is basically what its name suggests: a warehouse containing some 4,000 tools that member organizations can borrow for a very minor fee (3% of the tool’s value per week). Members can be nonprofits, schools, faith groups, neighborhood associations, even for-profit companies doing charitable projects.
“We save them a lot of money,” noted Melancon, “so they can use their funds for their missions and objectives. Tools are expensive, and if they buy them, then what do they do with them? Most organizations have no need for these tools once they are done with their projects.”
Much of the ToolBank’s support comes from corporations and their foundations, which leads to a further resource multiplier: the corporations frequently want to provide employee volunteers for ToolBank members’ projects.
In turn, those organizations and their staffs and volunteers get the experience of using the tools the donors provide, which Melancon reported builds a level of comfort and familiarity that translates into sales when such tools are being purchased. Corporate signage events further adds to the positive exposure supporters receive.
Another entrepreneurial benefit for both members and sponsors comes simply from working together.
“It’s a team-building exercise,” Melancon elaborated. “They can say, ‘we built this, and it’s going to benefit the community.’”
As examples of the types of projects involved, Melancon cited neighborhood associations enhancing parks and playgrounds; a group building tribal homes in Montegu; and a Baton Rouge project that constructed a volunteer facility – another case of resource multiplication. Last year, the organization lent out $388,000 worth of tools for 819 projects that engaged some 20,000 volunteers.
Becoming a ToolBank member organization requires completing a simple application process. Once accepted into the network, an automated Tool Ordering Management System facilitates access to the tools and equipment. Melancon frequently helps organizations refine their list of needs, arranges for pick-up, and makes sure that the necessary skills are in place.
“Some people have never used tools before, so it’s a skill and confidence-building opportunity,” he pointed out. However, he does check for proficiency, especially with the power tools. “If you don’t know how to start a chainsaw, that’s a good indication that you probably don’t know how to use a chainsaw,” he added with a laugh.
The organization itself is embarking on a new entrepreneurial phase. It is currently operated by the national ToolBank USA, which set up the local group after Hurricane Ida. However, the New Orleans ToolBank is preparing to become an independent affiliate, with its own board of directors and separate operations. According to Melancon, this will offer several key advantages.
“Local governance means better understanding of the needs of the local community,” he observed, citing increased need in southeast Louisiana for items like generators and dehumidifiers, “and being better able to anticipate the ebb and flow of those needs. We will be more flexible in being able to lend items at no cost in post-disaster situations. We’ll have better fundraising opportunities, because sponsors and foundations will see local leaders on our board, and in turn, those board members will have their own local connections.”
This restructuring is very much in keeping with Melancon’s entrepreneurial mindset.
“In the same way that startups disrupt market norms, our innovative tool-lending model fills a gap in the market by allowing affordable access to tools. In a world that prioritizes convenience and immediate gratification, ToolBank challenges that mode by sharing resources and focusing on long-term sustainability.
“So many organizations are themselves entrepreneurial,” he concluded. “We are expanding their capacities, their reach into the communities they serve.”
Keith Twitchell spent 16 years running his own business before becoming president of the Committee for a Better New Orleans. He has observed, supported and participated in entrepreneurial ventures at the street, neighborhood, nonprofit, micro- and macro-business levels.
