The intention of forming Appalachian By Design (ABD)
While the intention of forming Appalachian By Design (ABD) was to make it a non-profit venture, there are pros and cons if it were to be converted to a for-profit entity to address the unresolved issues it is facing concerning continuing its social mission. The process of rolling to a for-profit entity should consider the associated costs and benefits before full implementation is undertaken.
One of the cons that are likely to be encountered in transforming the organization to a for-profit entity is increased competition from imported products. Part of the design industry specializing in the production of more complicated designs such as handloom apparel stands to cause massive competition, denying Appalachian By Design the much-needed market. The companies operating in the industry have access to cheap raw materials from offshore is likely to bring the organization to its knee as it lacks competitive advantage. To overcome the challenge, the organization should identify and target a market where to sell its produce.
The benefit of turning the organization to a for-profit business entity is associated with increased revenue. Transforming to APPALACHIAN BABY DESIGN offered the body an opportunity to reach a broader market with the resultant benefit of increased revenue. Additionally, turning to a for-profit organization bestowed on the organization a much more developed human capital, improved systems for distribution and a mass of technical skills. The increased incomes from turning to a for-profit entity contributed to creating more opportunity for women like providing training to be self-reliance.
Conclusion
There are associated pros and cons in converting to a for-profit entity for organizations. For Appalachian By Design, turning helped in addressing the unresolved issues, it is facing continuing its social mission. Despite the challenges, non-profit organizations should consider switching to a for-profit entity to supplement their efforts in fulfilling their mandate.