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Solution Mountain, Inc. (SMI) the Idea you can take home

Solution Mountain, Inc. (SMI) the Idea you can take home. Measureable Business Expansion and Retention 90 Days. A CALED TECHNOLOGY PARTNER. What to Expect: Ask Hard Questions… Get Real Answers. How healthy is your Business Community?

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Solution Mountain, Inc. (SMI) the Idea you can take home

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  1. Solution Mountain, Inc. (SMI) the Idea you can take home Measureable Business Expansion and Retention 90 Days A CALED TECHNOLOGY PARTNER

  2. What to Expect:Ask Hard Questions…Get Real Answers How healthy is your Business Community? Can employment and sales trends predict future tax revenues? Which local businesses will fail without intervention?

  3. SMI Fuses Technologies Business Expansion and Retention Impact Analysis (businesses and projects) The Buy-Local Solution

  4. Measuring the Community’s Business Fabric… “Business Fabric: A community’s total business transaction and the efficiency of money changing hands”.

  5. The business footprint… Every business produces different impacts on the business fabric. SMI measures these influences to discover the community’s important wealth potential.

  6. The Footprint1 Metal Fabricating job in LA County The JOB The Footprint $118,160 average economic Impact for one job in LA County Sheet metal industry represents gross economic impact of the company’s revenues per employee $48,292Average Income for CA metal worker (+ benefits) Taxes $3,323Indirect business tax benefits per employee

  7. Biz Assessment & Risk Mitigation Assess Business Condition, Risks and Supply Chain Identify at-risk companies. Mitigate needs to retain key businesses. Launch solution to capture more local contracts and spending.

  8. Eureka, CAA Case Study

  9. 5-Year Baseline / Sales 47% Sales Increasing 25% Sales Stable 28% Sales Decreasing

  10. Sales Trends Baseline 47% Sales Increasing 25% Sales Stable 28% Sales Decreasing 34% increase 24% no change 42% decrease

  11. Labor Trends 11% increase 62% no change 27% decrease

  12. Enterprise Zone - Quick Look • 66% of respondents in Enterprise Zone • 16% use Bidding Preference • 40% use Sales Tax • 20% use Op Loss Forward • 36% Unused Tax Credit • 68% Bus Exp Deduction

  13. Eureka - who need financing? • 53% working capital • 13% real estate • 5% fixed asset • 29% other

  14. Companies At Risk? - Quick Look 4% need help with manufacturing process 22% can’t find skilled labor 23% facilities are not adequate

  15. Q. Eureka, Are Your Business Facilities Adequate For Your Current Needs? 23% of respondents said NO These companies may also be at Risk. What’s the economic footprint of these companies on Eureka’s business fabric?

  16. Doing the Math: What’s the Economic Value to the City for those companies whose Facilities are not adequate? • Gross Economic Impact $45.8 million • Labor Income $18.3 million • Jobs 623 • Indirect Business Tax $2.3 million • 5-year Impact $229 million

  17. Q. Eureka, would you participate in a program if it was easy to use and helped governments and corporations buy goods and services from local companies? 84% of respondents said YES

  18. Q. Eureka, if you answered yes, would you participate as a "buyer" and place at least some of your orders for goods and services in a system to help you locate local suppliers? 92% of respondents said YES they would place their orders in the system

  19. the Impact..Each $1 million retained in the Eureka economy produces $1.3 million in gross economic impact $569k in Payroll 24 jobs $157,000 in indirect business taxes

  20. Eureka - What goods and services do you buy outside the State? • Chemicals, children’s furniture and clothing and accessories, clothes, computer peripherals, computers, diapers by the bale, software and hardware, exercise equipment, supplies, fragrances, essential oils, fabric and supplies, hearing aids and ear molds, medical supplies motorcycles and parts, photographic equipment and supplies, printing, publishing products and equipment, seed, bird feeders, gift items, office equipment, specialty building supplies, sterling silver jewelry, technology equipment, tractors; trailers vending machines, game machines.

  21. Lost Corp Spending Typically, 10 to 15% of corporate purchasing dollars are Arbitrary! Most arbitrary dollars leave the area with little or no effort to contract with local companies. Our job is to capture these monies.

  22. Lost Public Dollars Public buyers use buying pools, strategic sourcing and bundling to obtain the lowest price and often without regard to local vendors or economic initiatives. Purchasing decisions that were made to save “thousands” often cost their community’s million$$.

  23. EXAMPLE (not Eureka) • A CA purchasing department will buy $3.5 million in computer equipment over 3 years. The decision has been narrowed to two suppliers. A local company has bid $3.5 million and an out of area vendor has bid $30k less. The purchasing agent selects the out-of-area bidder . The result of this decision is:

  24. Look close… The expected: Gained - $30,000 The unexpected: Lost - $166,000 in indirect business taxes Lost - $6.5 million in gross economic impact Lost - $1.4 million in payroll Lost - 22 jobs Lost - $313,000 in capital income

  25. ROI (Return on Investment*)The typical SMI program returns its value in the first $300k of captured dollars Capture Jobs Taxes Eco Impact • $1 million 24 $157,400 1.3 Million • $3 million 72 $472,000 4 million • $5 million 119 $787,000 6.8 million *Assume half the capture is in retail and half in wholesale trade.

  26. We Prove it! • SMI has tools to measure the economic impact of every transaction.

  27. CASE STUDYComparing 2 CA Businesses • Hardware Manufacturing Company • Greenhouse/Nursery

  28. Communities Share the Wealth Communities with the SMI solution can work cooperatively with regional partners

  29. Contact Solution Mountain Rob Gilmore, CEO Phone: 406 763 4412 Email: Rob@solutionmountain.com Fax: 866 847 8033 URL: www.solutionmountain.com Or Call CALED 916 448 8252 Ext 10

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