Business Modelsand

Resource Flowsin a Local Economy

Community ConversationsGrey-to-Green FestivalSeptember 11, 2010

Economies…are social systems within which we make choices

based on needs, wants, and means

of the

People Assets

20%

of the

80%

Satisfying WantsDisposable Income /

Debt / Misappropriation

Meeting NeedsEveryone Contributes

Everyone Benefits

2Local Global

Participation in a Local Economy

• Buy from local businesses

• Believe a local economy is sustainable

• Advocate on behalf of local businesses

• Administer the rules / rule sets of the local economy

• Invest in local businesses3

100% Participation in Local Economies

Buy

BelieveAdvocate

Administer

StatusQuo

Invest

Level of Participation

1

2

3

4

Hold Office In-Store

100% Participation in Local Economies - Levels

Search & Lurk

Join & Post

Convene & Lead

Health

Lifestyle

Aspirations

Vote & Lobby

Public Service

Farmers Market

Direct, e.g., CSAs

Volunteer

InvestOwn & Operate

StatusQuo

Level of Participation

1

2

3

Buy

BelieveAdvocate

Administer

Invest

5

How Do You Participate?

• Buy…

• Believe…

• Advocate…

• Administer…

• Invest…

6

Production-Centered Local Economies

Retail

People

Processing

Preparation

Distributed ManufacturingSystems

Green Energy

Systems

Local Food and

Water Systems

Production

People-Centered Local Economies

Processing

Production

Retail

Preparation

People

Green Energy

Systems

Local Food and

Water Systems

Distributed ManufacturingSystems

Business Models in a Local EconomyShow How an Organization…

• Generates sufficient revenue to cover or exceed expenses

• Utilizes assets and resources in the community without losing them

• Sustains itself by linking to others in the value chain and solving problems or meeting needs

9

Calories Gallons Kilowatts Cubic Feet Units Tonnage

Flow of Assets and Work within a Local Economy

Assets

Work Functions Increasing Value-Add

Increasing Applications

Community Investment

Portfolio

Output Metrics

Local Economic Sustainability

10

Meeting Local Needs• Food• Water• Energy• Fuel• Housing /

Clothing• 4 R’s• Security• Safety• Health• Education

Key Characteristics of a Business Ecosystemin a Local Economy…

• 100% participation

• Meeting local needs

• Work module integration

• Asset / resources utilization

• Applied output and performance metrics

11

Calories Gallons Kilowatts Cubic Feet Units Tonnage

Business Ecosystem Flows within a Local Economy

Increasing Value-Add

Increasing Applications

Community Investment

Output Metrics

Local Economic Sustainability

Seasonal Production

Waste RecoveryProcessingPreparation Year-round

Production

PortfolioKnow-HowInformationModelsMaps

Asset / Resource Utilization

Work Module Integration

Last Mile Distribution

Business Model Development

12

Meeting Local Needs• Food• Water• Energy• Fuel• Housing /

Clothing• 4 R’s• Security• Safety• Health• Education

100% Participation1

2

3

4

5

How Does Your Business Model Stack-Up?

• Who’s involved?

• What local needs are met?

• How are the work functions interconnected up and down the value chain?

• What previously underutilized / unused local assets and resources are now in play?

• How is score kept and who has the scorecard?

13

Resource Flow through Mediums of Exchange

Increasing Value-Add

Increasing Applications

Community Investment

Portfolio

Output Metrics

Asset Utilization Mediums of Exchange / Liquidity

Buy

Lease /

RentBorrow

Share

Money / Currency

Alternative Currencies

Time Banking

Carbon Credits

Renewable Energy Credits Volunteering

AssetsLand                    

Water                    Facilities                    

Equipment                    Housing                    Clothing                    

Materials                    

Work FunctionsDeconstruction Units                    

Repurposing Units                    Reuse Units                    

Recycling Tonnage                    Construction Sq Ft                    

Food Production Calories                    Food Processing Calories                    

Food Preparation Calories                    Fuel Generation Cu Ft / Gal                    

Energy Generation Kilowatt                    Manufacturing Units                    

Fabrication Units                    Support Services Units / Time                    

Output Metrics

Employ Contract Money / Currency

Alternative Currencies

Time Banking

Carbon Credits

Renewable Energy Credits Volunteering

Work Modules Mediums of Exchange / Value Exchange

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Meeting Local Needs• Food• Water• Energy• Fuel• Housing /

Clothing• 4 R’s• Security• Safety• Health• Education

How Do You Value, Engage, and Compensate?

• Money / currency?• Alternative currencies?• Time banking?• Carbon credits?• Renewable energy

credits?• Volunteering?• Others?

• Employment?• Contract?• Business Ownership?• Collaborative?

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Sustainable Local Economic Development

Portfolio

Seasonal Production

Soci

al N

etw

orki

ng

and

Inno

vatio

nEntrepreneurship

and Comm

ercialization

TransactionsServices

Marketing

Distribution

Finance

Retailing

IT / IS

Education

Land Use

Legal

Rules Management

AssetManagement

Know-How

Information

Models

Maps

Waste Recovery

Processing

Preparation

Year-round Production

Start with Delivery to the Consumer to Implement Sustainable Business Ecosystems

Start with Knowing Where the Assets Are to Invest in Sustainable Business Ecosystems

Community Members

Consumption-to-Production Localization

Busi

ness

Sus

tain

abili

ty P

roce

ss

Councils, Clubs, Co-ops

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