Simulating Total Economic Returns

socialthread.com/hohenwald/solari.com/toolkit/

Hohenwald Hohenwald 20082008

MissionVision

StrategiesObjectives

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

TOOLSTOOLS

Group Process

Orientation to Hohenwald

Investment Criteria

Investment Plan

What it is:

Group ProcessGroup 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

HohenwaldHohenwald

Retail Sales VolumeRetail Sales Volume

Retail SalesRetail SalesData Set: Spatial Distance from Hohenwald, TN

HousingHousing

HousingHousingData Set: Spatial Distance from Hohenwald, TN

IncomeIncome

IncomeIncomeData Set: Spatial Distance from Hohenwald, TN

IncomeIncomeData Set: Spatial Distance from Hohenwald, TN

Population ChangePopulation Change

Population ChangePopulation ChangeData Set: Spatial Distance from Hohenwald, TN

PopulationPopulation

3,754Hohenwald

City

Population CountPopulation CountData Set: Spatial Distance from Hohenwald, TN

Population %Population %Data Set: Spatial Distance from Hohenwald, TN

Data Set

Data Set: Lewis Co, TN

Lewis County

EstablishmentsEstablishments

EstablishmentsEstablishmentsData Set: Lewis Co, TN

Establishment TypeEstablishment Type

Establishment TypeEstablishment TypeData Set: Lewis Co, TN

EmploymentEmployment

EmploymentEmploymentData Set: Lewis Co, TN

Employment Employment Data Set: Lewis Co, TN

EmploymentEmployment

Employment Employment Data Set: Lewis Co, TN

About Hohenwald

Who Are the Investors?Who Are the Investors?

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

What Do They Want?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 CapitalInvestment 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 FusionAngel Fusion

Strategic PhilanthropyStrategic Philanthropy

Working the PlanWorking the PlanInvestment 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 InvestmentIncubator 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%

Decide YOUR Group’s Investment Plan

Tell us YOUR Group’s Investment Plan

Simulating Total Economic Returns