1. By Rob Gilmore, CEO Solution Mountain, Inc. ‘It’s not business as usual’

2. Statements: and Questions 2008 was a brutal year, 85%+ of companies have been adversely impacted The impacts of the downturn are not over…Responses show that more than 50% of business have not turned the corner…nearly every community has KEY companies that require help to hold on. Community leaders are in the dark about the trends and health of the business sector– they are looking to economic development professionals for the answers. This presentation is offered as a low-cost, best-practices example to help communities identify trends, report on the health of the business community, find and mitigate risks and grow the ready-to-grow companies.

3. Historically, economic development has been tilted towards attraction, many retention programs have been ineffective.

4. Today, only a trickle of companies are expanding or relocating

5. …..With a limited budget.

6. Make it real with results that can be measured in terms of jobs and taxes.

8. 1. Report trends and health of the biz community 2. Identify at-risk businesses 3. Mitigate the risks 4. Identify high growth candidates

9. ..it was not a questionnaire with carefully constructed ‘managed’ responses.. … its design encouraged free thought and allowed the gathering of constructive feedback from a wide range of viewpoints. David Gouin, Director of Economic Development and Housing, City of Santa Rosa

10. 86% adversely impacted by downturn 55% still hurting 81% say sales will stabilize by year end 2012

11. 165 different types of businesses 74% had 10 employees or less 70% earn less than $1 million annually

12. Over 40% of respondents reported having ‘critical’ business needs Identify At-Risk Companies

13. 24% need qualified employees 31% need help to retain high value employees 32% need working capital 4% need help with manufacturing process 14% need new equipment or facilities

14. ‘Stakeholders’ were trained and committed to correct ‘critical’ business needs Mitigating Critical Needs

15. The assessment and software filters deployed by SMI identified 19 candidates for business expansion – Economic Gardening – Identify growth candidates

16. The Way Forward

18. Economic Gardening Economic Gardening Time to Re-balance our economic development strategy Needed Emphasis Current Emphasis Recruitment Small Businesses Startups Grow From Within Existing Growth Companies 18 Edward Lowe Foundation copyright 2011

19. 1990 - Littleton, Colorado Economic Gardening Program Gradually built highly successful information system for local businesses Doubled jobs and tripled tax revenue over 20 years Gained national and international attention The Littleton, CO Chris Gibbons model Littleton Strategic Research Team Model 19 Edward Lowe Foundation copyright 2010

20. Virtual Teams Team process is key Pilot engagement 35 hours per company

21. Edward Lowe Foundation agrees to host the National Center for Economic Gardening – providing infrastructure, technology & training for multiple pilot programs 21 Edward Lowe Foundation copyright 2011 State Legislation Florida Oregon (Nebraska) Federal Support Kansas (USDA) Coastal Georgia (EDA) Northern Arizona State Support Louisiana Michigan Missouri Wyoming Indiana Local Support Indiana - Purdue NW Ohio Sudbury, Canada Hennepin County, MN Hampton Roads, VA Hendricks County, IN

22. Strategic Research Team (SRT) System Services and Program Management Software system for online company application and selection, collaboration workspace, and project management Turn-key billing, invoicing and progress reports Typical engagement - 35 total hours with (SRT) at $105 per hour and $150 set up fee per company Training and Certification for state or regional SRT programs and teams. Economic Gardening Economic Gardening

24. Market Research/Competitive Intelligence Consumer goods and medical manufacturer Provided competitors’ patent applications. Allowed the client insight into its competitors’ activities and future plans.

25. Computer software training Produced a report of online conversations that were relevant to the client’s industry. This included message, author, time/date shared, profile link and more. Equipped with this information, the client was instructed on a strategy to increase its visibility and credibility within the market.

26. Pharmaceutical Testing Lab Tests pharmaceuticals on lab immune system. Gathered data and developed maps that describe spread of sexually transmitted diseases within older populations. Clients can use info to drive legislative funding for development of pharmaceuticals.

27. Contact – Rob Gilmore, CEO Solution Mountain Rob@solutionmountain.com Ph: 305 299 8460