Hi All,
This is Andy Asmus, an out-of-touch Patience student. My Fall quarter was very much a dormant time for me, but in the Winter and Spring, my project-work has explode. Having the freedom and the time to pursue my interests and passions has absolutely changed my life, and my perspective on what is possible in this existence.
I would like to offer a presentation to the Patience class, but not during normal class times. If necessary, I can do that also. It would have to be towards the end of the Spring, though.
Pasted below is a basic summary of my study in Local Economic Systems, and the fruits of my experiment in social capital. Any and all learners in Patience are welcome to jump on board this project, and there are many others in the works.
Other projects I am coordinating/working closely with:
Bread and Roses Garden Project.
Demeter's Garden (Permaculture workshops taught by myself every Friday from 12-5pm)
A 4-acre farm that I just got access to--just across the fence from my house on the Westside (we'll need a lot of hands to take care of the horses, goats, and chickens)
A local group of young people studying permaculture, creating a collective certifying body. Currently, we are drafting up a group contract for the summer time (we will each choose several topics from the Permaculture Design curriculum, become experts in our respective topics, and then teach that information to each other, resulting in our own Permaculture Designer's Certification.
A sustainable timber-harvest operation.
A garden for the Bread and Roses' Men's Shelter on the Eastside of downtown.
And, my new business, "The Social Capital." The owner and I are signing the lease this next week, and he has just told the other prospective tenant that she needs to find another place.
You all are welcome to participate in any of these projects in whatever way you feel moved.
Here goes--a long document, I know, but if you make it to the other side, you'll know that you have a place downtown to do whatever you want. Once I purchace this, or another, space I will turn it over to whatever collective forms in the meantime, and then it will be owned not by the city, but directly by the members of this community.
It's gonna be a wild ride.
Blessings,
And welcome back to the States,
andyc
Basic Income Projections,
&
Financial Resources:
Income Sources:
1. Subleasing
2. Hosting Workshops and Classes
3. Consignment of goods
4. Personal Startup Loans
5. Outside Income
6. Federal Grants
Subleasing:
Rental of offices in the back of the store:
Currently have six interested clients, each willing to
pay up to $200 per month to occupy the office space to
practice their trade, or have their own private
studio. Two pairs of these clients will likely wish to
share a couple of rooms, and split a slightly higher
rent of $250 per month amongst themselves.
Hosting Workshops and Classes:
Seven teachers and facilitators of various arts and
skills wish to practice teaching in this space. I
have spoken with several of them regarding finances
and enrollment. As a beginning teacher, getting 10
people to commit to a one hour workshop for $10.00
each week with regularity can be difficult, but it is
a reasonable way to begin such a venture. Several
instructors have told me that if they ask for more
funds (up to $20/hour per student or $30 for two
hours), they often have more students who are more
likely to continue studying with them. Also, many of
these teachers have an established client base
already, so finding a sufficient number of students
for their classes doesn't seem to be a difficulty.
Consignment of Goods:
Twenty-six artists and craftspeople in the South Puget
Sound area, and into the Great Plains have made the
initial arrangements with me to begin selling their
wares at the Social Capital. After having spoken with
acquaintances at the Cloud 9 Consignment shop in
Seattle, WA, I have learned that their must either be
a large quantity of goods moving quickly, or larger,
more expensive pieces moving at a slower rate. At the
Social Capital, both the more elaborate and expensive
items as well as cheaper, purely functional products
will be on the market, thus diversifying our market
within the store itself. Plus, each individual vendor
will have its own clientele base, it's own target
market, which will allow for a wide range of people
seeing all the other vendor's work as well.
Personal Loans:
At present, three family members and two friends have
agreed to provide me with assistance with the startup
moneys for The Social Capital. We have agreed to a
minimum of $500 each, which will come to a minimum of
$2500.
Plus, a local philanthropist and arts supporter agreed
on March 14th to provide $2,000 to help with startup
costs.
Outside Income:
I am working 3 days per week, 10-12 hours per day at
the Burnt Ridge Nursery and Orchard. My wages are
currently $10 per hour, which comes to an income of
$1200-1440 per month.
Federal Grants:
Being an Evergreen Student, I am receiving $1300 per
3-month period in grants for living expenses, which is
in addition to tuition.
Business Plan for The Social Capital
Vision Statement:
The Social Capital business venture will have a
clientele base of local artists, teachers, healing
arts practitioners and their own clients respectively.
The business will provide storefront space for
consignment and gallery display area in addition to
art studio space for the general public and/or the
production of saleable items on site. The clientele
will be as diverse as the goods being marketed in the
store. And, with so many members of the community in
Olympia participating in this venture, I intend for
the space to serve as a hub for local economic growth
and as a networking center for local artisans and
local business.
Client Base:
I have verbal agreements arranged with a large number
of potential clients. Currently the agreements are
contingent on the acquisition of a suitable location
for the business.
A group of clients and friends are beginning to plan a
grand-opening event which will include workshops in
permaculture design, organic gardening and plant care,
music, dance, natural building and painting. In
addition, three well-known bands have agreed to play
the event. Two hail from the Olympia area,
respectively called Mudcat and the Blackberry Bushes,
and the other is based out of Seattle/Vashon Island
call themselves Trillium.
Potential attendees include the members of The Seattle
Peace Chorus, Bread and Roses staff, volunteers, and
residents, any and/or all of the potential artisan,
teacher, healer clientele, Olympia residents
interested in local economics, and the entire
Evergreen Student Body. Our initial plan for the date
of such an event would be the same day as the Olympia
Arts Walk, which occurs on the 23rd of April each
year.
Mark,
Thank you for the candor in your message. I
understand that arranging a lease agreement with a
fledgling business is risky business to say the least.
And, I appreciate the consideration you have given to
me and to my ideas thus far. As I stated in my
previous message, my financial situation is still
settling out. Some of my requests to friends and
family for personal loans, grants, and other sources
of funding for this business are still being
considered. Some of them have been accepted, and we
are working out the details. More information on
these funds is listed below.
I recognize that a three-year lease is a tremendous
financial commitment, and I have discussed this with
my business-savvy relatives, who have urged caution
and careful planning. My aunt and uncle, Barb and
Hugh Sheehy, own a historical bank/office building in
downtown Missoula, along with several other apartment
and rental properties. Their businesses have been
established and stabilized over the past decade, and
their financial position is very secure. Two days
ago, they offered to be my emergency lender in case
something goes awry with this business venture.
Barb has committed to a no-interest $5,000 loan, to be
repaid whenever possible. These funds are left over
from my grandparent’s estate, and are available to me
in case of emergency. They said “We want to see this
succeed, and will do what we can to make sure that it
does.” If I am in need of over $5,000 in assistance,
then we will talk about interest on additional loans.
They have set no ceiling on these additional loans,
but I would feel comfortable with asking for $10,000
more if necessary. I am currently drafting a written
agreement between myself, and Barb Sheehy, outlining
the particulars and stipulations of this emergency
loan. If you would like a copy for your own records,
I can procure that for you within the week.
In addition, I am speaking with a SBA loan officer
with Wells Fargo. The requirements for accessing an
SBA loan are that you have decent credit history, and
your business has been operating for a minimum of 30
days. At that time, upwards of $10,000 in
low-interest loans are available to applicants. The
requirements for acceptance for these loans are far
less stringent than those of for-profit lenders since
this program is sponsored and funded by the federal
government. The repayment period for these funds is
between 5 and 25 years, and the interest negotiable,
but not to exceed the maximum interest that the
lenders offer to the rest of their customers.
It is true that I am working 30-40 hrs a week for $8
per hour. I am resigning from the position of
Assistant Orchard Manager for a variety of reasons,
financial and interpersonal. I have arranged a job on
the weekends for 20 hours per week, as a
subcontracting landscaper in Seattle at $14.00, to
replace the income I am making at the orchard. This
job will start before leaving the Orchard, and will
cover my living expenses while allowing more time to
staff the shop downtown. This income will come to
$1,120 per month. Plus, I do not need to make a
living from this project now, or in the near future.
Nearly all moneys made, after reasonable compensation
for my own efforts, will be reinvested in the space.
I am also teaching a workshop series in Permaculture
Design and its application, making a minimum of $100
per workshop, and teaching for 2-4 hours per week.
Yesterday, I taught 20 people how to graft apple
trees, and was paid over $100 in donations and nominal
class fees. I have been building my client base for
these workshops over the last few months, and it is
just becoming financially viable now. After
discussing potential fees with my students, it is
quite clear that $25 per person per four-hour session
is a reasonable charge. If 12 students will attend
each workshop, that means an additional $300 for each
four-hour session offered. If only 4 people show up,
that is still an additional $100 per workshop, coming
to $25 per hour. The potential income here is limited
mainly by time invested in coordinating and
advertising these events. A low-estimate of income
from one workshop per week is $200, totaling $800 per
month.
As soon as I have a venue to work with, I will arrange
to be teaching more than one workshop per week with
other instructors in the area on topics including
local economics, permaculture design, urban
agriculture systems, small systems analysis, herbal
medicine, nonviolent communication, and active
listening. The client base for these workshops is
already established, and they will be doing business
with me whether or not I can host them at a space I am
leasing.
This project is of such importance to me, I am willing
to use my vehicle as collateral for bank loans and/or
a material asset to cash in incase of an emergency.
Its value, without improvement or maintenance is
$4,500.
In addition, I have been a builder by trade, and have
numerous friends who are also builders. At least 4 of
those builders have volunteered their services to help
me remodel the space. I am also well connected with
Habitat for Humanity, and Sound Builder’s Resource,
who deal in recycled building materials. My estimate
for cost of materials for renovation of this space is
$2,500, with labor being on a strictly volunteer
basis.
Here are the revised (steadily increasing) totals of
my financial resources at this time:
Ø $12,434 in funds available within the next week and
a half.
Ø $5,000 in no-interest loan from Barb Sheehy.
Ø $10,000 in low-interest loan from Barb Sheehy.
Ø $10,000 in SBA loans available after the first 30
days of operation.
Ø $4,500 in collateral in my vehicle.
v Currently my liquid assets are $12,434 plus wages
after living expenses are paid, which is the
equivalent of 5.7 months rent.
v I have $19,500 in available emergency funding, which
is the equivalent of 8.86 months rent.
v In SBA loans pending, and vehicle collateral, I have
$14,500 in security, which is the equivalent of 6.6
months rent.
v Before sales, before income, before any business
transactions of any kind, I have the resources
available to pay for at least 14 months of occupancy
of this space, before utilities and insurance.
v After the business is established, and SBA loan
secured, I will have start-up funds to cover 20.6
months of occupancy.
v I intend to apply for small business grants, and
have a friend who is a trained grant writer who will
offer free consultation and assistance for this
purpose.
v We can both expect other sources of personal loans
and donations to come in after the business is
established and the space occupied.
I must state my case for why I believe that this
project will work, above and beyond the finances and
taxes and insurance costs, etc. Having spoken one on
one with at least four-dozen members of this
community, I haven’t found a single soul who hasn’t
been excited about the prospect for such a place in
this town. Beyond that, almost half of those people
have volunteered their time and efforts to help get
this place off the ground. “The Social Capital” is
not just a gimmick-name for this venture. It will be
successful because many community members already feel
a sense of ownership over the project, because it is
my intention to allow them to use the space as they
wish (within reason). That is why this business has
such a potential to succeed.
I am currently in the application process for a
sole-proprietorship business license, and intend on
applying the resources aforementioned to a space in
downtown Olympia, with a good location. One reason
that I am so emphatic about leasing the space you have
to offer is that I have struck a deal with Bread and
Roses, a local homeless shelter and advocacy center.
We have worked and organized together for the last
year and a half with great success. They want to
purchase a space downtown, and have been dreaming
about the building you are leasing. If I can acquire
a lease for 3 years, with the intent to purchase
within the next 5-10 years, I can hold that space
while Bread and Roses staff work on accessing the
grant money with which we can jointly buy the space.
We know the value of the central location of your
space for non-profit, homeless-advocacy work as well
as for my profit-driven ventures.
In writing this, I am not intending to make any
proposals, but merely stating my hopes for this space,
and for this business relationship. My main goal is
to acquire a lease on your space on State Avenue, and
to enter that space as soon as is reasonable.
Thanks again for your consideration, Mark.
I will be in contact with you again soon.
Andrew C. Asmus