Food truck entrepreneurship program as a community engagement project Food Truck is owned by the student government with an eye to future ownership sharing with Hud zone eligible employee owners ID: 782080
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University of Michigan student government as AmeriCorps Vista employer and small business incubator
Food truck entrepreneurship program as a community engagement project.Food Truck is owned by the student government with an eye to future ownership sharing with Hud zone eligible employee owners.Profits from the truck grow the business; but also fund student government scholarships.Food truck developer is the manager of the truck and is the AmeriCorps volunteer, as such she is charged with melding student employees with members of the community who need to be Inspired to be future employee owners
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Slide2Student government owned food truck as a community economic engine for growth.
Student government as grant writerWrite grants for truck; promise to use cash flow to grow the business, pay scholarships, pay a living wage to all food truck employees with the free capital of the truck.Student government will hire employees who are veteran,Hud zone, Michigan works,DHS,student need based and disabled.
University provides AmeriCorps cost sharing
University provides living stipend in the form of a grant of free student housing to a need based student who is a food truck employee or AmeriCorps volunteer.
Student is allowed the difference in cost of attendance as a financial aid refund.
University provides parking lots and sidewalk and lawn space to student government owned and partnered food trucks.
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Slide3Tax and training incentives
The food truck will receive tax payments from the IRS as an incentive for employing the above groups.The food truck will receive Michigan works job training funds.AmeriCorps contributions
http://
www.nationalservice.gov/programs/americorps/americorps-vista/sponsor-vista-project
AmeriCorps is looking for project sustainability; food truck cash flows and employee and student enthusiasm should provide this.
Students are our customers!
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Slide4Business plan
Community foundations pay the costs of 5 food trucks over ten years based on performance and AmeriCorps and student government and university partners.Student government pledges to use the enhanced cash flow from the free food trucks to (A) expand the business(B) employ needs based students and members of the community identified through community engagement(C) use cash flow for scholarships(D)pay a living wage to all food truck employees(E)Student government pledges to “let go” of ownership to partial and full ownership of food trucks over a period of time to employee owners and to,(F)use the sale proceeds from sold food trucks to expand this student/community project.
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Slide5https://www.youtube.com/watch?v=Ei_jA-RQ9GE
http://www.youtube.com/watch?v=z7wMiiz9JVA&feature=youtu.be&src_vid=oanIjMMQ3jk&feature=iv&annotation_id=annotation_3081967689https://www.youtube.com/watch?v=n1PrV3jtrnMLansing!
https://
www.youtube.com/watch?v=8XhelxwsPKc
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Slide6Flint food truck court partners with farmers market
What I have been looking for, a food truck farmers market synergy! And its localhttps://www.youtube.com/watch?v=duf-34ng6i0University Michigan may not want to cooperate with us, seeing us as competition or a threat to their bureaucracy so the farmers market is not that far away
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Slide7USDA , MRS grant to fund a handicap accessible food truck
USDA SBIRTo design a food truck with wheel chair lifts for excess and egress.Wheel chair height appropriate cooking and food preparation surfaces and point of sale/ customer counter.We want to maintain intellectual property and manufacturing rightsMRS Grant makingMRS job training funds
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Slide8S corporation partners with the student government and ESOP partner
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Slide9ESOP majority owner of S Corporation; individual truck is a minority partner
Student government
Food truck
Food truck
Food truck
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Slide10Student government is 100% S Corporation partner at first, Grants pay for 3 to 4 food trucks
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Slide11Student government incubates 3 more trucks
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Slide12Student government sells the 3 food trucks to the ESOP/Food truck partner
Student government pledges to plow the sale price back into more food trucks to grow the business and to incubate yet more food truck businessesOur goal is a Portland style food truck flea marketEach food truck sold to the ESOP/S Corporation partner signifies $100,000 back to the student government incubator12(C) S T Rappolee 2013
Slide13Greek council food truck community service project
Partners with the student government food truck incubator projectGreeks Sponsors individual food trucksOwns individual food trucks as S corporation partnersIncubates additional food trucks to empower the working poor, student owners, the ESOP.Greeks provide an untapped reservoir of food truck entrepreneurship, innovation and drive to help student government become a major economic force for social entrepreneurship.Greeks could be a motivated customer base! Especially for their houses truck! (C) S T Rappolee 201313
Slide14ESOP as our leveraged equity partner
Student government is in the business of incubating social entrepreneurial opportunity's in the community; as such the ESOP can borrow to purchase food trucks from student government, returning equity to student government and redeploying that equity to grow the business.The employees who own the ESOP gain equity as the ESOP loan is paid off.(C) S T Rappolee 201314
Slide15ESOP as community social entrepreneurship vehicle
Food truck ESOP employees can move about between food trucks in the S corporation, as such there ownership equity is portable!Minimum wage employees are the most likely to need government and non profit support, and many will be minimum wage workers for their entire carriers.A ESOP allows for many decades of cash flow from food sales to become future wealth to other wise poor people.Creative motivated ESOP workers can become S Corporation owners or managers, upward mobility! student government, Greeks, other students could go to work at this project full time after graduation!(C) S T Rappolee 2013
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Slide16Student government owned business incubator as a model national AmeriCorps Vista program
The Food truck employee ownership“coach”/manager should be repeated for every truck; work force training funds could be our partner here as well**(subsidy).Food truck coach is our ESOP motivational cheerleader, she encourages the working poor and all others to contribute innovation in service to reduce employee turnover***MRS provides funding for our disabled employees and S corporation partners who are disabled( subsidy).IRS provides a tax credit for handicap and veteran employees (subsidy)If we share these subsidies to the employee as a retention bonus we could achieve to aims,(1) our social entrepreneurship goals and,(2) reducing the high costs of ESOP employee turnover. Most of these subsidies last only a year so we should “bank” them
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Slide17Banked government incentives
IRS veteran/disabled incentives involve 20 to 40 hours a week and the employee must work most or all of that year,So we must provide a rebate of the incentive to the employee, to provide that incentive to stay, some incentives must be short term and others long term.So one incentive would be to pay a living wage or higher, the food trucks bought with grant money could easily do this but what about future ESOP employees? could we translate non profit cash flows to the benefit of the future low wage ESOP employee?Can we insure student government honors this pledge? An employee hand book might work here as a start, for the shorter term. After all a percentage of employees will stay beyond the first year thus earning the employer the IRS credit.others will be subsidized week to week by MRS/VA/work force funds, this funding could provide the living wage incentives, the IRS incentive could be the year end bonus!(C) S T Rappolee 2013
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Slide18Transferring subsidy's to the future ESOP working poor; the mechanisms
Subsidy's to the business equal to equity to the student government/non profit/Greek/student organization. Some of this could be transfer to the employee quarterly in the first year but the non profit could when selling the food truck to the S corporation/ESOP reimburse that loyal low wage employee who has stayed the course .The NCEO once did a study on methods on providing employee equity to the non profit employee, how do you do this?The Unitarian church came up with a method to reimburses ministers who had excess to a church provided home but would not have home equity built up over decades after retirement, the church put funds into a fund that over decades would equal to the retirement fund.I suggest that a non profit food truck employee who stays the course(C) S T Rappolee 2013
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Slide19Non profit food truck employee equity when sold to ESOP, what would be the mechanism?
IRS veteran incentive; $10,000 if works 40 hours over one year. half for 20 hours a weekIRS disabled; ?MRS; ?Work force training funds; ?Pay living wage with MRS/ work force; weekly/quarterly bonus for staying at 40 hoursPay quarterly into a home ownership fund in partnership with local partnersPay a quarterly/yearly wage retention bonusWhen Student government sells the food truck this loyal employee receives a “equity” compensation (How?)I would argue for a ESOP share but I am not sure of the IRS rule making here, do we need a IRS rule making letter? We may have to simply pay the non profit employee a cash bonus when the business sells based on service and longevity
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Slide20Regulations and our charter
The food truck as gifts must never be sold as this may have IRS effects.Cash flow from gift food truck can purchase additional food trucks.Additional food trucks test concepts and partnerships; it is our goal to sell these to student and community employee entrepreneurs. We pledge that our mission is to enable business ownership for the poor We will fund student government scholarships 20
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Slide21AmeriCorps volunteer hired by winning a televised contest
This is a screen writing proposal to PBS travel channel and food channel.Competitors are perhaps culinary school graduates or others who owe student loansExperience and/or classes in business are importantExperience or education in employee equity and community development
The Prize or prizes could be a down payment on a food truck after 1 year service as a food truck coach.The TV show would match the AmeriCorps student loan forgiveness program.
The community development corporation would preapprove a ESOP SBA loan.
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Slide22AmeriCorps volunteer hired by winning a televised contest
Contestant must demonstrate for over a week a food truck concept and menu.Contestant must demonstrate execution of concepts and menu.Contestant's employees will be community members who might be students and the disadvantaged.Contestant must attempt to build a team and to attempt to solicited employee participation and innovation in the food truck business
This televised contest can not be done in one 1 hour show.This must be a 1 season show, think of “this old house” which s done over many shows.
The production leases 5 food trucks.
The production hires a diverse crew of employees for the 5 food trucks, we challenge the contestant with the chronically unemployed, homeless, student employees.
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Slide23Show chronology
First week; a 1 hour show introducing the shows concept.second week; Third week; food truck concept and menusFourth week; contestant must team build employees and potential employee ownership cultureFifth week; contestant must solicited innovation from potential employee ownersTelevision viewers vote,Judges,No losers; most contestants could become S corporation partners with the ESOP partner.The “winner” receives recognition but possibly this contestant becomes a part of the managing S Partner team
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Slide24Food Truck business incubator show; season two
Employee owners become S corporation partnerEmployee owners become contestants! This allows the working poor to become S Corporation partners This means we have promoted an innovative employee owner into their own food truck!Outside contestants allowed to.
S Corporation partners
Former AmeriCorps job coach who are now S corporation partners are our panel of judges for season two.
Contestants must demonstrate employee owner team building and respect
Contestant must demonstrate menu/concept innovation
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Slide25Hypothesis;10 food trucks with employee owners might bring a cluster of innovation
10 food trucks 5 employees per shifts’ two shifts= 10 employees.10 trucks results in 100 employees.100 employees entitled to a free meal per shift, however we should issue our own ESOP currency say $1 per hour for use in the ESOP food truck park to buy meals100 employees X 8 hours per shift = $800 per day
10 S Corporation partners
Food truck $100,000 each X 10 = $1 million.
$10,000 equity per employee.
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