Financial Permaculture - Green Incubator Business


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Financial Permaculture! Green Incubator business plan for the rural community of Hohenwald, TN.

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Financial Permaculture - Green Incubator Business

  1. 1. H.O.P.E. Hohenwald Organization for Progressive Enterprise Business Incubator Project Financial Permaculture 2008 Greening a Rural American Community: Hohenwald, TN
  2. 2. Mission Statement <ul><li>We are a local business facilitator designed to increase wealth and self-reliance for our community. We help identify, fund and nurture enterprise opportunities that create meaningful jobs and retain young talent in the community to multiply total economic and social returns. </li></ul><ul><li>Our goal is to foster local resilience by building mutual trust and economic vigor while protecting and regenerating the environment and improving local commerce, agriculture, housing, and energy production. </li></ul>
  3. 3. Business Concept <ul><li>We are a Community Self-Sufficiency Business Incubator. We support companies that create good jobs and encourage young people to stay in the local community. By supporting and mentoring entrepreneurs in sustainable businesses we create local wealth. </li></ul>
  4. 4. Organization and Management <ul><li>The staff team: </li></ul><ul><ul><li>Manager / Administrator </li></ul></ul><ul><ul><li>Executive Assistant </li></ul></ul><ul><ul><li>Community Organizer (1/2 time) </li></ul></ul><ul><ul><li>Business / Finance Developer (1/2 time) </li></ul></ul><ul><li>Volunteer Board of Directors (5-7 individuals) </li></ul><ul><li>Advisory Council </li></ul>
  5. 5. Market Summary <ul><li>Market Opportunity </li></ul><ul><ul><li>unemployment </li></ul></ul><ul><ul><li>young population </li></ul></ul><ul><ul><li>people leaving the community </li></ul></ul><ul><ul><li>people interested in apprenticeships </li></ul></ul><ul><ul><li>more money in the community </li></ul></ul><ul><li>Who are we marketing to: </li></ul><ul><ul><li>startup individuals and businesses </li></ul></ul><ul><ul><li>existing businesses </li></ul></ul><ul><ul><li>potential mentors and coaches </li></ul></ul><ul><ul><li>people that will provide financing </li></ul></ul>
  6. 6. Market Summary (cont.) <ul><li>Influencers </li></ul><ul><ul><li>churches </li></ul></ul><ul><ul><li>schools </li></ul></ul><ul><ul><li>banks </li></ul></ul><ul><ul><li>colleges </li></ul></ul><ul><ul><li>customers that will buy our clients’ products or services </li></ul></ul><ul><ul><li>government </li></ul></ul><ul><li>Who we will collaborate with: </li></ul><ul><ul><li>USDA Agriculture extension services </li></ul></ul><ul><ul><li>Tennessee small business development center TSBDC </li></ul></ul><ul><ul><li>Chamber of Commerce </li></ul></ul><ul><ul><li>Junior College or University business programs </li></ul></ul><ul><ul><li>Community development organizations </li></ul></ul>
  7. 7. Market Summary (cont.) <ul><li>Getting the word out: </li></ul><ul><ul><li>Free publicity in </li></ul></ul><ul><ul><ul><ul><li>local newspapers and magazines </li></ul></ul></ul></ul><ul><ul><ul><ul><li>local TV and Radio interviews </li></ul></ul></ul></ul><ul><ul><li>Paid ads in newspapers, radio and local magazines </li></ul></ul><ul><ul><li>Classes on how to start a business and keep it going </li></ul></ul><ul><ul><li>Endorsements from faith and other leaders </li></ul></ul><ul><ul><li>Church meetings </li></ul></ul><ul><ul><li>Internet website </li></ul></ul><ul><ul><li>Hand outs and bulletin boards </li></ul></ul><ul><ul><li>Talks at local schools and Junior Colleges </li></ul></ul><ul><ul><li>Booth at flea markets, farmers markets or fairs </li></ul></ul>
  8. 8. Opportunities <ul><li>Our services will include: </li></ul><ul><ul><li>Access to local resources including business and educational collaboration opportunities, interns, mentoring support teams, etc. </li></ul></ul><ul><ul><li>Business planning </li></ul></ul><ul><ul><li>Product, marketing and manufacturing strategy support </li></ul></ul><ul><ul><li>Strategic partnerships and licensing opportunities </li></ul></ul><ul><ul><li>Sales strategy and business development </li></ul></ul><ul><ul><li>Legal advice on governance, IP, licensing, corporate law, deal structuring </li></ul></ul><ul><ul><li>Finance and accounting support and IT consulting </li></ul></ul><ul><ul><li>Government agency navigation and grant support </li></ul></ul><ul><ul><li>Networking opportunities with investors and other emerging businesses </li></ul></ul>
  9. 9. Opportunities (cont.) <ul><li>Services (cont): </li></ul><ul><ul><li>Linking large corporations and incubator participants around sustainable business practices </li></ul></ul><ul><ul><li>Sponsorship of competitions for business plans, specifically focused on social, economic, and ecological sustainability </li></ul></ul><ul><ul><li>Seed funds for specific projects </li></ul></ul><ul><ul><li>Assistance with facilities, services, and support </li></ul></ul><ul><li>Our initial client base will consist of the other enterprises being presented - in building , food and energy </li></ul>
  10. 10. Competitive / Collaborative Environment <ul><li>We see ourselves collaborating with faith-based organizations and other local economic development initiatives. </li></ul><ul><li>There is no need for &quot;competition&quot; in the area of assisting businesses and individuals in our community. If someone else can do it better, we don’t need to. </li></ul>
  11. 11. Specific Goals and Objectives <ul><li>Provide business plan assistance, including a database of existing resources for local entrepreneurs </li></ul><ul><li>Build upon existing businesses as well as developing new businesses </li></ul><ul><li>Have a central store front or highly visible location </li></ul><ul><li>Support the creation of six new businesses a year </li></ul>
  12. 12. Goals and Objectives (cont.) <ul><li>Get community businesses to work together and support existing businesses to be more profitable </li></ul><ul><li>Support community self-reliance and strengthen the local economy by helping local people getting involved in local business. </li></ul><ul><li>Secure a facility or network of facilities in Hohenwald that can benefit incubator participants, the local economy, and investors. </li></ul>
  13. 13. Financial Plan <ul><li>Our business model foresees two revenue streams: </li></ul><ul><ul><li>7% fee on sales of the incubated business </li></ul></ul><ul><ul><li>5% referral fee for sending new business to existing firms </li></ul></ul>
  14. 14. Financial Plan (cont) <ul><li>Anticipated revenues for Years 1-3 (not including grants or sponsorships): </li></ul><ul><ul><ul><li>Year 1: $22,500 </li></ul></ul></ul><ul><ul><ul><li>Year 2: $41,000 </li></ul></ul></ul><ul><ul><ul><li>Year 3: $46,000 </li></ul></ul></ul><ul><li>Expenses: </li></ul><ul><ul><ul><li>$138,800 per year </li></ul></ul></ul><ul><li>Net requirements: </li></ul><ul><ul><ul><li>Year 1: -$116,000 </li></ul></ul></ul><ul><ul><ul><li>Year 2: -$97,600 </li></ul></ul></ul><ul><ul><ul><li>Year 3: -$92,400 </li></ul></ul></ul>
  15. 15. Total economic return <ul><li>Job creation </li></ul><ul><ul><ul><li>2 full-time </li></ul></ul></ul><ul><ul><ul><li>2 part-time </li></ul></ul></ul><ul><ul><ul><li>$285,000 in wages </li></ul></ul></ul><ul><li>New business revenues: </li></ul><ul><ul><ul><li>$1.3 million </li></ul></ul></ul><ul><ul><ul><li>$258,000 new business directed to existing local firms </li></ul></ul></ul><ul><li>Total economic return </li></ul><ul><ul><ul><li>$1.8 million over 3 years </li></ul></ul></ul><ul><ul><ul><li>With a multiplier of 1.5 = $2.8 million </li></ul></ul></ul><ul><ul><ul><li>With a multiplier of 4 = $7.4 million </li></ul></ul></ul>
  16. 16. Resource Requirements <ul><li>Personnel: </li></ul><ul><ul><li>Administrator / Manager and an Assistant, and later a part-time Community Organizer and Business / Finance Developer </li></ul></ul><ul><li>Technology and other needs: </li></ul><ul><ul><li>Office with internet, donated office furniture & equipment </li></ul></ul><ul><ul><li>Accounting, Legal, Insurance, Utilities </li></ul></ul><ul><li>Physical Facility: </li></ul><ul><ul><li>Existing facility as central hub and longer term goal for office space for businesses that need it </li></ul></ul><ul><li>Promotion </li></ul><ul><ul><li>Mostly free publicity and word of mouth, but also advertising, events, etc. </li></ul></ul>
  17. 17. Risks and Rewards <ul><li>Risks </li></ul><ul><ul><li>Lack of interest </li></ul></ul><ul><ul><li>Lack of support </li></ul></ul><ul><ul><li>Business failures </li></ul></ul><ul><li>Rewards </li></ul><ul><ul><li>Successful businesses </li></ul></ul><ul><ul><li>Increased local self-sufficiency </li></ul></ul><ul><ul><li>Ecological restoration and sustainability </li></ul></ul>
  18. 18. Key Issues <ul><li>Near term </li></ul><ul><ul><li>Finding a “champion” </li></ul></ul><ul><ul><li>Making a commitment and putting some initial resources behind the effort </li></ul></ul><ul><li>Long term </li></ul><ul><ul><li>Need for a building to house startups </li></ul></ul><ul><ul><li>Making the incubator fully self-supporting </li></ul></ul><ul><li>Source of funding of approximately $100,000/yr </li></ul><ul><ul><li>Good value in terms of total economic return </li></ul></ul>
  19. 19. <ul><li>Presenters </li></ul><ul><ul><li>Debbie Landers </li></ul></ul><ul><ul><li>Peter Huber </li></ul></ul><ul><ul><li>Jason Eaton </li></ul></ul><ul><li>Support Team </li></ul><ul><ul><li>Cassandra Warner, Jonathan Cloud, Andy Langford, Kathleen Lynch, Kathy Bower, Andrew Heinrich, Donna Tobey, JoAnn Eisenberg, Susan Guest, Liam T. Hanrock, Aaron Craelius, David Liechty, Susan Butler, Glenn Tanner, Kyle Thiermann, Budd Haberstick, Amy Coulter, Ben Haslinger </li></ul></ul>Thank you!
  20. 20. H.O.P.E. Hohenwald Organization for Progressive Enterprise Business Incubator Project Financial Permaculture 2008 Greening a Rural American Community: Hohenwald, TN