Michael Shuman

12 Cutting-‐Edge Tools To Finance

The Local Food Revolution

Local Dollars, Local Sense

Overview I. Reflections from Cleveland

II. Lessons on Competitive Strategy III. Cutting-Edge Capital Tools

5/29/2013 4

I. Reflections from Cleveland

5/29/2013 5

I. Reflections from Cleveland

our bakeoff with 12 farmers' markets and 225 community gardens reported, serving truckloads of fresh food to its population of over 450,000. A nearly 600 percent increase in total number of farmers' markets and a sizable increase in community gardens since 2006 explain Cleveland's ascent in this

- Sustain Lane

Amazing Diversity

The Study Design Benefits Obstacles Ways to Achieve Strategic Focus

A Regional Approach

25% Shift Reemploys 27,000

9,998

5,091 4,081

8,493

Jobs

FarmersRetailersProcessorsOther

Wal-Mart Local Food?

Direct $$$ Benefits

and local tax

Indirect $$$ Benefits

Tourism Business Magnet Entrepreneurship Unemployment Benefits

($127 million)

Fiscal Health Capital Improvements Rural Development Economic Security

Other Benefits

Public Health Global Image Environmental

Carbon Footprints

Big Challenges

Infrastructure Land Consumer Demand Capital Entrepreneurship Competitiveness

II. The Competitiveness of Local

U.S. Jobs Market by Firm Size

0%10%20%30%40%50%60%70%80%90%

100%

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

500+ Employees100-499 Employees0-99 Employees

Competitiveness of Canadian Small Business

23%

24%

25%

26%

27%

28%

29%

30%

2000 2001 2002 2003 2004 2005 2006 2007 2008

% GDP

% GDP

Profitability of Local in 2006 (Net Income/Net Revenue)

0%

5%

10%

15%

20%

25%

Sole ProprietorsPartnershipsC-Corporations

Why Global Is Becoming Less Competitive

Service Economy Rising Oil Costs

Home-Based Biz

The Big Picture

Price v. Value

Economist Thinking Starbucks New Seasons

Strategies for Local Competitiveness

Collaboration Quality Vertical Integration Speed Distribution Efficiency

Strategy #1 Collaboration

Indian Springs Mississippi Producer Cooperative

Indian Springs

Strategy #2 Quality

Cape Croker, Ontario Sole Proprietorship

Strategy #3 Vertical Integration

Strategy #4 Speed

Lorentz Meats Cannon Falls, MN C-Corp

Strategy #5 Distributional Efficiency

Oklahoma Food Coop Statewide Producer & Consumer Cooperative

Diseconomies of Global Food

0102030405060708090100

1900 2006

Year

Distribution

Inputs

Farmer

III. Cutting-Edge Capital Tools

The Biggest Barrier

Financial Assets Detail ($ Billions in 2005)

The Impact of $1+ Trillion Shift

Capital Requirements for 25% Shift in Cleveland ($735 M)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Capital Needed ST Savings LT Savings

$ Millions

The Accredited Investor

Tapping the Other 99%

(2) Coop Investment

(4) Sponsorships

(5) Internet Lending

(6) Slow Munis

(7) Pre-Selling

(8) Local Stock

Recent Legislation

(9) Local Stock Exchanges

Community Portals

(10) Grassroots Loan Funds

(11) Investment Clubs

(12) Self-Directed IRAs

What Beats the Street?

5/29/2013 83

12.5%

2.6% 5.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Boasted AnnualS&P RoR

Actual S&PAnnual RoR

Local InvestmentGoal (TaxDeferral)

Are Canadian Markets Better?

5/29/2013 84

Real Annual RoR: 2.2%

Local Investments Beating 5%

Equal Exchange Community Grocers Weaver Street

Municipal Actions

Bank Local Web Listing Self-Directed RRSPs More Reform

The Treasure in Our Backyards

For More Information:

Michael Shuman

202-669-1220 [email protected]

www.cuttingedgecapital.com

mailto:[email protected]

http://www.cuttingedgecapital.com/

Michael Shuman

Economy & Finance

Transcript of Michael Shuman