1. Business Models
and
Resource Flows
in a Local Economy
Community Conversations
Grey-to-Green Festival
September 11, 2010

2. Economies…
are social systems within which we make choices
based on needs, wants, and means
Satisfying Wants
20% Disposable Income /
80%
Debt / Misappropriation
of the
Meeting Needs
of the
Everyone Contributes
Everyone Benefits
People Assets
Local Global 2

3. 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 businesses 3

4. 100% Participation in Local Economies
Invest
Administer Buy
Status
Quo
1
2
3
Level of
Advocate Participation
Believe
4

5. 100% Participation in Local Economies - Levels
Own & Operate Invest
Invest
Volunteer
Direct, e.g., CSA
Public Service
s
Hold Office In-Store
Administer Buy
Vote & Lobby Status Farmers Market
Quo
Search & Lurk 1 Health
Join & Post 2 Lifestyle
Convene &
3 Aspirations
Lead
Level of
Advocate Participation
Believe
5

6. How Do You Participate?
• Buy…
• Believe…
• Advocate…
• Administer…
• Invest…
6

7. Production-Centered Local Economies
Green Retail
Energy
Systems
Processing
Distributed Manufacturing
Production
Systems
Local
Food and
Water Preparation
Systems
People

8. People-Centered Local Economies
Local
Food and
Water Processing
Systems
Retail
Distributed Manufacturing
People
Systems
Preparation
Green
Energy Production
Systems

9. Business Models in a Local Economy
Show 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

10. Flow of Assets and Work within a Local Economy
Increasing
Assets
Local Economic Sustainability Applications
Meeting Output
Community
 Calories  Gallons  Kilowatts  Cubic Feet  Units  Tonnage
Metrics Investment
Local Needs
Portfolio
• Food
• Water
• Energy
• Fuel
• Housing /
Clothing
• 4 R’s Increasing
• Security Work Functions
Value-Add
• Safety
• Health
• Education 10

11. Key Characteristics of a Business Ecosystem
in a Local Economy…
• 100% participation
• Meeting local needs
• Work module integration
• Asset / resources utilization
• Applied output and performance metrics
11

12. Business Ecosystem Flows within a Local Economy
1 100% Participation 4 Asset / Resource Utilization
Maps Models Information Know-How Portfolio
Increasing
Local Economic Sustainability
Applications
Business Model Development
2 5
Meeting Output
Community
 Calories  Gallons  Kilowatts  Cubic Feet  Units  Tonnage
Metrics
Local Needs Investment
• Food
• Water
• Energy
• Fuel Last Mile Distribution
• Housing /
Clothing
• 4 R’s Waste Year-round Seasonal Increasing
Preparation Processing
• Security Recovery Production Production
Value-Add
• Safety
• Health 3 Work Module Integration
• Education 12

13. 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

14. Resource Flow through Mediums of Exchange
Asset Utilization Mediums of Exchange / Liquidity
Increasing
Lease / Rent
Applications
Borrow
Share
Buy
Renewable
Money / Alternative Time Carbon Energy
Currency Currencies Banking Credits Credits Volunteering
Assets
Land
Water
Facilities
Equipment
Housing
Clothing
Meeting Materials
Output
Community
Local Needs Work Functions
Deconstruction
Metrics
Units
Investment
Repurposing Units Portfolio
• Food Reuse
Recycling
Units
Tonnage
• Water Construction
Food Production
Sq Ft
Calories
• Energy Food Processing
Food Preparation
Calories
Calories
• Fuel Fuel Generation
Energy Generation
Cu Ft / Gal
Kilowatt
• Housing / Manufacturing
Fabrication
Units
Units
Support Services Units / Time
Clothing Output Metrics
• 4 R’s Employ Contract Money / Alternative Time Carbon
Renewable
Energy
Increasing
• Security Work Modules
Currency Currencies Banking Credits Credits
Mediums of Exchange / Value Exchange
Volunteering
Value-Add
• Safety
• Health
• Education 14

15. How Do You Value, Engage, and Compensate?
• Money / currency? • Employment?
• Alternative currencies? • Contract?
• Time banking? • Business Ownership?
• Carbon credits? • Collaborative?
• Renewable energy
credits?
• Volunteering?
• Others?
15

16. Sustainable Local Economic Development
Councils, Clubs, Co-ops
Start with Delivery to the Consumer to
Implement Sustainable Business Ecosystems
Rules
Management
Portfolio Preparation
Consumption-to-Production Localization
Business Sustainability Process
Know-How Processing
Legal
and Commercialization
Social Networking
Entrepreneurship
and Innovation
Distribution Retailing
Transactions Waste
Information IT / IS Land Use
Services Recovery
Marketing Education
Finance Year-round
Models
Production
Seasonal
Maps
Production
Asset
Start with Knowing Where the Assets Are to Management
Invest in Sustainable Business Ecosystems
16
Community Members