Ethical stalking by Mark Williams. UpliftLive 2024
Agen presentation at coady forum 6 25-13
1. Implementing Wealth Creation Value Chains:
A Step-by-Step Methodology to Create New Entrepreneurial
Opportunities in Rural Communities
June 25, 2013
2. Work in 64 counties of Arkansas / Mississippi Delta
o Poverty > 25%
o Unemployment > 10%
o Outmigration
Wealth Creation Value Chain Coordinator since 2010
o Exploration March 2010 to July 2011
o Construction July 2011 to December 2012
o Implementation at Community Level January 2013 to present
Since 1998, worked with over 4000 entrepreneurs to start, grow
and rebuild their businesses
In 2011, became Community Development Financial Institution
= microloans for working capital
Today: 13 full time professionals across 5 rural offices
Background on
3. Creating entrepreneurial opportunities is only one of
many objectives in developing W.C.V.C.
Impact of New Businesses on Wealth
Built – purchasing eye-sores and repurposing them
Individual – building new skills
Financial
o Encouraging local investors to invest in new businesses
o Profits likely to be invested in community and value chain
Step 1: Map out Value Chain
Creating Competitive Entrepreneurial Opportunities
5. Demand for biofuel
Local municipalities, school districts, farmers, truckers
Regional companies - Valero, FedEx
Local
and
State
Policy
Support
MSCC Mini Refinery Micro Refinery
Spring-
board
Diesel
Mfg
Dist
Gir
Ener
gy
Mfg
Angel
Investor
Net
work
Loan
Funds
Waste Vegetable Oil
Collection Businesses
Source of WVO:
restaurants,
convenience stores,
schools,
hospitals,prisons,ca
sinos, etc.
Community
Mktg
Strategy
Ed/promo
materials
Community
Recycling
Programs
Progressive
Community
Leadership
Trans-
porta-
tion
Camelina Seed
Processing Company
Growers of
Camelina:
Minority, Non-
Minority
Farmers
Camelina
research
ASU, PCC
UA
Camelina
Agronomic
Service
Business
USDA
Support
Programs:
NAP, Cover
Crops, Crop
Insurance
ADTEC
RET
Train
ing
Fuel
Blend
er
Distri
butor
Animal Feed
Composting
Cosmetic mfg
By
Prod
uct
Meal
By
Prod
uct
Gly
ce
rol
AGEN Opportunities for Entrepreneurs
6. Step 2: Identifying Gaps in the Value Chain
Use meeting with entire value chain
o Creates sense of ownership
o Allows each member to see whole picture
o Creates problem solving relationship
Be prepared to revise and revise again
Be intentional about principles when
identifying gaps
o Agronomic services business
o Means of engaging minority and low resource
farmers
7. Key Questions:
o Can someone make a profit
by performing this service
or making this product?
o Should this gap be filled by
a non-profit value chain
partner and need to be
subsidized? By whom?
Step 3: Determine Link Between Gaps and Business
Opportunities
8. Step 4: Feasibility Studies
Start with business that will be selling directly to
consumer
Determine market size and competitive pricing
Determine costs of production or service
Determine equipment needs and costs
Risk Analysis
o Market risks
o Financial risks
o Operational risks
o Human resources risks
o Regulatory risks
Develop clear mitigation strategies for each risk
9. One page
Based on information and data gathered through
feasibility study process
How will this business make money?
Discuss steps from inputs to delivering to consumer
Stage business model to ensure early success
Keep in Mind: Businesses are interrelated. All should
be launched at same time. Reality: Who is first?
Example: Seed Crushing Operation. Diversify inputs and
services from the start.
Step 5: Business Model
10. Integrated model:
o Profit and Loss Projections
o Balance Sheet Projections
o Cashflow Projections
Determine capital needs
o Create asset listing and anticipated costs
o Use cashflow model to determine working capital needs
throughout first 3 years
o Develop Sources and Uses Table
Step 6: Financial Model
11. Ask community leaders and bankers to identify
potential investors and make introductions
Secure initial interest /commitment from investors
Identify potential entrepreneurs through investors
Encourage investors to raise additional questions to
test feasibility of ventures
Triple Bottom Line: financial, social, environmental =
impact YOUR community
Do not overpromise!
Don’t force investors into your intended structure
Step 7: Meeting with Potential Investors
12. Beginning with first meeting in community, ask for
entrepreneurs. Start creating the “buzz”
Ask investors to identify entrepreneurs. They would
rather invest in their “friends”
Publish stories in the local paper about opportunities
Hold community meeting to discuss entrepreneurial
opportunities and results of feasibility studies
Be intentional and creative about including interested
entrepreneurs from all parts of the community
Too many interested entrepreneurs?
Step 8: Identify Entrepreneurs
13. During value chain construction, engage financing
partners and gauge interest
Equity = patient capital
o Friends and family
o Investment holding company to secure out of state
investors
o Angel investor network
Bank finance = interest only for 6 months
Seek out alternative lenders (CDFIs)
Exit Strategy: Create strategy that will allow
entrepreneurs to buy out investors after 3 to 5 years
Step 9: Capitalization of Entrepreneurs
14. Soft launch = ensure everything is working according
to plan
Celebrate: Engage the press and community
Support: Provide intensive technical assistance
throughout launch phase
Collect data and document so business can be
replicated in other communities
Revise feasibility study, business model and financial
model to reflect reality
Step 10: Launch, Celebrate and Support
15. You are only laying the ground work for the
private sector
Be aware when you need to get out of the way
Continue to be the keeper of the values!
The Pitfall: Playing Value Chain “God”