A new approach to help entrepreneurs launch and develop their - PowerPoint PPT Presentation

A new approach to help entrepreneurs launch and develop their business, find partners and associates ... based on a new social and solidarity economic model, deployed via a dedicated platform and a support network Buy – Sell – Participate 14/10/2019 FlexUp - supporting the solidarity economy 1

FlexUp: an innovative solution to many structural economic and social problems of our societies Analysis The FlexUp approach • Nearly 6 million 1 unemployed / underemployed in France • Entrepreneurship as a response to underemployment - that is 20% of the active population → a real drama! - if companies do not recruit, or not enough, let’s help people - young, suburbs, homeless, seniors, disabled, migrants ... start and grow their own businesses • A legal and tax framework unfavorable to recruitment - help people take control and become masters of their destiny - a dissuasive labor law 2 • An innovative, flexible and fair business model - a penalizing taxation 3 - all participants without distinction (employees, suppliers, • More and more precarious jobs investors ...) can share the risks of a project - the greater concentration and mobility of capital implies an - the profits are shared in proportion to the contribution and unfavorable balance of power for employees level of risk taken by each participant - this puts pressure on wages and favors the use of temporary • An open platform, at the service of its participants worker, temporary contracts, part-time work, offshoring ... - a marketplace where entrepreneurs can offer all types of • A structurally discriminating economic model products and services and find clients - the priority of a payments depends on the nature of its - management tools for structuring the business, managing recipient: employee, state, supplier, banker, shareholder contracts and accounting, calculating the distribution of - the shareholders take the most risks, so they are the sole profits with ease and transparency owners of the company and of all the profits - employees take (virtually) no risk, so they have no voting • A support network to help entrepreneurs rights, no rights to a share of the profits - a network of sponsors (advisers, investors, experts ...) to • Platforms capture a growing share of value support entrepreneurs throughout their journey - the network effect favors the web giants’ platforms (Amazon, - a simple, flexible and incentive-based compensation scheme Uber, Airbnb, Google) to the detriment of others for sponsors 4 - these giants capture 20% to 50% of revenues (commissions, advertising, management fees) and impose their conditions - fierce competition between sellers / service providers 14/10/2019 FlexUp - supporting the solidarity economy 2

FlexUp: an open marketplace at the service of its participants Type of participant: Clients Entrepreneurs Sponsors Key benefits: • Find products and services online • • Help entrepreneurs get started and grow Offer products and services online • their business Find customers easily • Make yourself useful by valuing your • What makes FlexUp special: Payment simplicity and security time, your skills, your resources 9 • A single platform for all types of products and services What makes FlexUp special: • A simple and efficient system for What makes FlexUp special: • For all types of entrepreneurs, all types • Helping with a potential return 10 searching and ordering of products and services • Fair, transparent and guaranteed prices • Flexibility on your type of support • A fair and healthy competition model, • Visibility and contact with entrepreneurs (coaching, investment, specialized advice) ensuring reasonable prices for clients and your level of commitment (from a (profiles, evaluations, favourites, and reasonable revenues for suppliers few hours to several million €), and on statistics) • Lower commissions (or none for certain the level of risk taken • A guarantee of service, quality and safety categories) • Participate in an entrepreneurial project • Home delivery, withdrawal in shop or • An integrated management tool and a dynamic local community remote service – as the case may be • Receive support from competent and • Create "clubs" of sponsors (mutualized • Focus on local entrepreneurs caring people investments pools) • A helping hand for entrepreneurs who • Help on administrative procedures • Twinning with local "clubs" of are just starting • Financing support at the start-up stage entrepreneurs (e.g. solidarity between • Participating in the social and solidarity and throughout the development urban and rural areas, Europe-Africa, ...) economy • Sharing the profits of the platform • Participating in the social and solidarity • A flexible scheme that accompanies economy entrepreneurs and start-ups throughout their development 14/10/2019 FlexUp - supporting the solidarity economy 3

FlexUp: an innovative, flexible and fair business model Objectives The FlexUp approach The objectives of FlexUp are to: 1. To begin, each participant (including investors) negotiates with the company: • simplify the creation, structuring and management of • a target remuneration in return for its respective contribution businesses, (e.g. 15% return on invested capital), • help businesses create more wealth and ensure that this • the split of this target (= flexible + base) between: wealth is better shared among all participants. - the base (without risk): paid every month, - the flexible (at risk): paid at the end of the year, within the For this purpose, the FlexUp business model aims to: limit of the available cash flow, if there is any. • simplify and eliminate distinctions between different types of: 2. Incoming cash flows (revenues + funding) are used to pay: - participants : employees, investors, suppliers, customers ... • first the base costs, to all participants, - contributions : labor, capital, goods, services ... • then the flexible costs, in proportion to the available cash flow - payments : remuneration (wages, sales, purchases, interest, 3. If the cash remaining after payment of the base is insufficient to dividends ...) or capital (debt, equity, grants...). pay all the flexible costs in full, then: • encourage better collaboration between all participants by: • the flexible of each participant is paid at the same rate (ex: if - aligning the interests by unifying the funding and there is 3 M € of cash and 4 M € of flexible to pay, each one remuneration systems, gets 75% of its flexible), - better spreading the risks, • the unpaid flexible residue is converted into capital . - ensuring greater transparency. 4. The net cash flow remaining after payment of the flexible is • make businesses more resilient and easier to finance: distributed among all the participants in proportion to the - make the cost structure more flexible, respective risks. - reduce the need for capital to finance creation and growth. 5. The risk of each participant is calculated according to 5 : • his capital : investment + unpaid flexible residue, • his flexible remuneration. 14/10/2019 FlexUp - supporting the solidarity economy 4

FlexUp case study Nr 1 Café Alphonse: FlexUp for helping an entrepreneur open a café Context The FlexUp approach • Alphonse (25) is a young man without qualifications. He lives in • The Café’s revenues serve: a small town in Burkina Faso and had no income for 2 years - first to pay the base costs: rent, purchase of provisions, - then pay the flexible costs: Alphonse's salary, • Fabrizio sponsored him to open a café, with an investment of finally, to distribute the available net cash flow 6 in proportion 300 €: - to the risks taken by each - 120 € rent (3 months paid in advance x 40 €/month) - 140 € equipment (tables, chairs, thermos, cups ...) - 40 € provisions ( nescafé, tea, water, pastis) • Cash flow allocation scheme: • Alphonse’s goal of is to earn 75 € / month: 100% flexible salary Alphonse Fabrizio Total (at risk, depending on the café’s revenues) Capital € - 300 300 • Forecast: €/month €yr Flexible € 900 - 900 Revenues 150 1 800 Risk € 900 300 1 200 Base costs 50 600 % 75% 25% 100% Base cash flow 100 1 200 Net cash flow € 225 75 300 Flexible salary 75 900 % 75% 25% 100% Net cash flow 25 300 Total remuneration € 1 125 75 1 200 % 94% 6% 100% (flexible + surplus) Question: How to distribute the net surplus fairly? FlexUp approach: Based on the respective risks taken Note : in this simple example, we assume that capital and flexible have the same risks (i.e. 1 € capital or 1 € flexible = 1 € of risk). These risk weight factors can be adjusted. 14/10/2019 FlexUp - supporting the solidarity economy 5