Total Economic Return Simulation

Simulating Total Economic Returns

socialthread.com/hohenwald/

solari.com/toolkit/

Hohenwald 2008

Mission

Vision

Strategies

Objectives

To optimize total return for both investors and their ecosystem

We’ll define our investment criteria and plan how to use our capital wisely

Group process, collaboration, and deliberation to define the best possible investment

The best return for our investors and the network with:

Systems Thinking

Investment Criteria

Investment Plan

TOOLS

Group Process

Orientation to Hohenwald

Investment Criteria

Investment Plan

What it is:

Group Process

1. Decisions will be made by majority vote.

2. You are expected to work together thinking critically about how to optimize total economic return; to keep notes; to refine and draft investment criteria and an investment plan

3. This session will last three hours with a 10 minute break every hour

4. Appoint a scribe and speaker to report to the large group in the next sections

Form Small Groups

Tennessee

Hohenwald

Retail Sales Volume

Retail Sales Data Set: Spatial Distance from Hohenwald, TN

Housing

Housing Data Set: Spatial Distance from Hohenwald, TN

Income

Income Data Set: Spatial Distance from Hohenwald, TN

Population Change

Population Change Data Set: Spatial Distance from Hohenwald, TN

Population 3,754 Hohenwald City

Population Count Data Set: Spatial Distance from Hohenwald, TN

Population % Data Set: Spatial Distance from Hohenwald, TN

Data Set

Data Set: Lewis Co, TN

Lewis County

Establishments

Establishments Data Set: Lewis Co, TN

Establishment Type

Establishment Type Data Set: Lewis Co, TN

Employment

Employment Data Set: Lewis Co, TN

Employment

Employment Data Set: Lewis Co, TN

About Hohenwald

100 Families living in Lewis County have agreed to invest $1,000/mo each

Those same families will also gift $250/mo each

For the next 3 years

Who Are the Investors?

What Do They Want?

A positive return on their investment of 5-10% annually

That their capital “does no harm”

That as much value as possible is created for the community of Hohenwald

Investment Capital

What are YOUR criteria for Total Economic Return?

Decide YOUR Group’s Investment Criteria

Tell us YOUR Group’s Investment Criteria

How should this capital be allocated?

Angel Fusion

Strategic Philanthropy

Working the Plan Investment Capital Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Angel/VC Investment 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Philanthropic/High Risk Investment 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Total 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 Investment Cash Flows to Projects BY % USERS MANIPULATED THESE FIELDS TO OPTIMIZE TER ON NEXT WORKSHEET SEE CHART -----> Angel/VC Investment Incubator 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% Supply & Salvage 14% 14% 14% 14% 14% 14% 14% 14% 25% 25% 25% 14% Contractor Association 5% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% Ethanol Production 14% 14% 14% 14% 7% 14% 14% 14% 14% 14% 4% 14% Ethanol Distribution 14% 14% 14% 14% 14% 9% 14% 14% 14% 2% 14% 50% Ag. Mkt & Coop 14% 14% 14% 14% 14% 14% 14% 14% 2% 14% 14% 14% Community Kitchen 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% Total 89% 98% 98% 98% 91% 93% 98% 98% 97% 97% 99% 134% Philanthropic/High Risk Investment Incubator 50% 50% 50% 14% 14% 14% 14% 14% 14% 14% 14% 14% Supply & Salvage 10% 14% 5% 14% 14% 14% 14% 14% 14% 14% 14% 14% Contractor Association 5% 3% 7% 14% 14% 14% 14% 14% 14% 14% 14% 14% Ethanol Production 4% 4% 5% 14% 14% 14% 14% 14% 14% 14% 14% 14% Ethanol Distribution 3% 5% 5% 14% 14% 14% 14% 14% 14% 14% 14% 14% Ag. Mkt & Coop 14% 10% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% Community Kitchen 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 100% 100% 100% 98% 98% 98% 98% 98% 98% 98% 98% 98%