H.O.P.E. Hohenwald Organization for Progressive Enterprise Business Incubator Project Financial Permaculture 2008 Greening a Rural American Community: Hohenwald, TN

Mission Statement 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. 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.

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.

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.

Business Concept 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.

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.

Organization and Management The staff team: Manager / Administrator Executive Assistant Community Organizer (1/2 time) Business / Finance Developer (1/2 time) Volunteer Board of Directors (5-7 individuals) Advisory Council

The staff team:

Manager / Administrator

Executive Assistant

Community Organizer (1/2 time)

Business / Finance Developer (1/2 time)

Volunteer Board of Directors (5-7 individuals)

Advisory Council

Market Summary Market Opportunity unemployment young population people leaving the community people interested in apprenticeships more money in the community Who are we marketing to: startup individuals and businesses existing businesses potential mentors and coaches people that will provide financing

Market Opportunity

unemployment

young population

people leaving the community

people interested in apprenticeships

more money in the community

Who are we marketing to:

startup individuals and businesses

existing businesses

potential mentors and coaches

people that will provide financing

Market Summary (cont.) Influencers churches schools banks colleges customers that will buy our clients’ products or services government Who we will collaborate with: USDA Agriculture extension services Tennessee small business development center TSBDC Chamber of Commerce Junior College or University business programs Community development organizations

Influencers

churches

schools

banks

colleges

customers that will buy our clients’ products or services

government

Who we will collaborate with:

USDA Agriculture extension services

Tennessee small business development center TSBDC

Chamber of Commerce

Junior College or University business programs

Community development organizations

Market Summary (cont.) Getting the word out: Free publicity in local newspapers and magazines local TV and Radio interviews Paid ads in newspapers, radio and local magazines Classes on how to start a business and keep it going Endorsements from faith and other leaders Church meetings Internet website Hand outs and bulletin boards Talks at local schools and Junior Colleges Booth at flea markets, farmers markets or fairs

Getting the word out:

Free publicity in

local newspapers and magazines

local TV and Radio interviews

Paid ads in newspapers, radio and local magazines

Classes on how to start a business and keep it going

Endorsements from faith and other leaders

Church meetings

Internet website

Hand outs and bulletin boards

Talks at local schools and Junior Colleges

Booth at flea markets, farmers markets or fairs

Opportunities Our services will include: Access to local resources including business and educational collaboration opportunities, interns, mentoring support teams, etc. Business planning Product, marketing and manufacturing strategy support Strategic partnerships and licensing opportunities Sales strategy and business development Legal advice on governance, IP, licensing, corporate law, deal structuring Finance and accounting support and IT consulting Government agency navigation and grant support Networking opportunities with investors and other emerging businesses

Our services will include:

Access to local resources including business and educational collaboration opportunities, interns, mentoring support teams, etc.

Business planning

Product, marketing and manufacturing strategy support

Strategic partnerships and licensing opportunities

Sales strategy and business development

Legal advice on governance, IP, licensing, corporate law, deal structuring

Finance and accounting support and IT consulting

Government agency navigation and grant support

Networking opportunities with investors and other emerging businesses

Opportunities (cont.) Services (cont): Linking large corporations and incubator participants around sustainable business practices Sponsorship of competitions for business plans, specifically focused on social, economic, and ecological sustainability Seed funds for specific projects Assistance with facilities, services, and support Our initial client base will consist of the other enterprises being presented - in building , food and energy

Services (cont):

Linking large corporations and incubator participants around sustainable business practices

Sponsorship of competitions for business plans, specifically focused on social, economic, and ecological sustainability

Seed funds for specific projects

Assistance with facilities, services, and support

Our initial client base will consist of the other enterprises being presented - in building , food and energy

Competitive / Collaborative Environment We see ourselves collaborating with faith-based organizations and other local economic development initiatives. There is no need for "competition" in the area of assisting businesses and individuals in our community. If someone else can do it better, we don’t need to.

We see ourselves collaborating with faith-based organizations and other local economic development initiatives.

There is no need for "competition" in the area of assisting businesses and individuals in our community. If someone else can do it better, we don’t need to.

Specific Goals and Objectives Provide business plan assistance, including a database of existing resources for local entrepreneurs Build upon existing businesses as well as developing new businesses Have a central store front or highly visible location Support the creation of six new businesses a year

Provide business plan assistance, including a database of existing resources for local entrepreneurs

Build upon existing businesses as well as developing new businesses

Have a central store front or highly visible location

Support the creation of six new businesses a year

Goals and Objectives (cont.) Get community businesses to work together and support existing businesses to be more profitable Support community self-reliance and strengthen the local economy by helping local people getting involved in local business. Secure a facility or network of facilities in Hohenwald that can benefit incubator participants, the local economy, and investors.

Get community businesses to work together and support existing businesses to be more profitable

Support community self-reliance and strengthen the local economy by helping local people getting involved in local business.

Secure a facility or network of facilities in Hohenwald that can benefit incubator participants, the local economy, and investors.

Financial Plan Our business model foresees two revenue streams: 7% fee on sales of the incubated business 5% referral fee for sending new business to existing firms

Our business model foresees two revenue streams:

7% fee on sales of the incubated business

5% referral fee for sending new business to existing firms

Financial Plan (cont) Anticipated revenues for Years 1-3 (not including grants or sponsorships): Year 1: $22,500 Year 2: $41,000 Year 3: $46,000 Expenses: $138,800 per year Net requirements: Year 1: -$116,000 Year 2: -$97,600 Year 3: -$92,400

Anticipated revenues for Years 1-3 (not including grants or sponsorships):

Year 1: $22,500

Year 2: $41,000

Year 3: $46,000

Expenses:

$138,800 per year

Net requirements:

Year 1: -$116,000

Year 2: -$97,600

Year 3: -$92,400

Total economic return Job creation 2 full-time 2 part-time $285,000 in wages New business revenues: $1.3 million $258,000 new business directed to existing local firms Total economic return $1.8 million over 3 years With a multiplier of 1.5 = $2.8 million With a multiplier of 4 = $7.4 million

Job creation

2 full-time

2 part-time

$285,000 in wages

New business revenues:

$1.3 million

$258,000 new business directed to existing local firms

Total economic return

$1.8 million over 3 years

With a multiplier of 1.5 = $2.8 million

With a multiplier of 4 = $7.4 million

Resource Requirements Personnel: Administrator / Manager and an Assistant, and later a part-time Community Organizer and Business / Finance Developer Technology and other needs: Office with internet, donated office furniture & equipment Accounting, Legal, Insurance, Utilities Physical Facility: Existing facility as central hub and longer term goal for office space for businesses that need it Promotion Mostly free publicity and word of mouth, but also advertising, events, etc.

Personnel:

Administrator / Manager and an Assistant, and later a part-time Community Organizer and Business / Finance Developer

Technology and other needs:

Office with internet, donated office furniture & equipment

Accounting, Legal, Insurance, Utilities

Physical Facility:

Existing facility as central hub and longer term goal for office space for businesses that need it

Promotion

Mostly free publicity and word of mouth, but also advertising, events, etc.

Risks and Rewards Risks Lack of interest Lack of support Business failures Rewards Successful businesses Increased local self-sufficiency Ecological restoration and sustainability

Risks

Lack of interest

Lack of support

Business failures

Rewards

Successful businesses

Increased local self-sufficiency

Ecological restoration and sustainability

Key Issues Near term Finding a “champion” Making a commitment and putting some initial resources behind the effort Long term Need for a building to house startups Making the incubator fully self-supporting Source of funding of approximately $100,000/yr Good value in terms of total economic return

Near term

Finding a “champion”

Making a commitment and putting some initial resources behind the effort

Long term

Need for a building to house startups

Making the incubator fully self-supporting

Source of funding of approximately $100,000/yr

Good value in terms of total economic return

Presenters Debbie Landers Peter Huber Jason Eaton Support Team 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 Thank you!

Presenters

Debbie Landers

Peter Huber

Jason Eaton

Support Team

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

H.O.P.E. Hohenwald Organization for Progressive Enterprise Business Incubator Project Financial Permaculture 2008 Greening a Rural American Community: Hohenwald, TN