EcoGrowSusheel Cheeti

Nikhil Ghangurde

EcoGrow

We are requesting a bank loan of $600,000 at 8.0% interest over five years.

EcoGrow

Excessive Waste

520,125,000 pounds of hair ends up in landfills

annually in the US

Eutrophication

Farm fertilizer seeps into bodies of water and kills

marine life

Farm Losses

Farms overpay for fertilizer and receive

environmental criticism

EcoGrow

Conventional Fertilizer

Conventional Fertilizer

Ineffective

Made from fossil fuels

Destructive

Expensive

EcoGrow

Hair

Human waste product

Organic, renewable raw material that costs close to nothing

Environmentally-friendly

Occurs naturally and does not cause eutrophication

Research-based

Multiple studies support hair as a nutrient-additive for soil

EcoGrow

The Research

Longer period of decomposition allows for

constant supply of nutrients

Hair was found to be just as effective as

conventional fertilizers when used correctly

Essential Nutrients Constant Supply Efficacy

91% of hair’s composition consists of nutrients that

are essential to crops

EcoGrow

Customer Segments

Large Commercial Farms

•Yearly revenue over $350,000

•Holds 96% of agricultural market share

Small Local Farms

•Yearly revenue under $350,000

•Operates on 90% of US farmland

Household Gardeners

•1 in 3 US households has a garden

•Middle to upper-class householdsEntire United States

California and New York State

EcoGrow

Supplier Locations: West Coast

Los AngelesSan Francisco

EcoGrow

Supplier Locations: East Coast

New York City Philadelphia

EcoGrow

Unique Value Proposition

Costs farms 22% less than conventional fertilizers

Hair waste is not finite like fossil fuels

Supplier Incentives Cost per Ton Completely Renewable

Supplying EcoGrow allows for green marketing

EcoGrow

The Process

Hair Collection

Hair Delivery

Hair Processing

EcoGrow

Hair Collection

• Bin supplied by EcoGrow as incentive for participation

• Hair ends up in bin instead of landfill

Supplier employees place hair into ‘hair bin’

• Costly and inefficient to remove ourselves

• Inorganic chemicals impact fertilizer quality

Gelled, dyed, and bleached hair excluded from bin

EcoGrow

• Contract truck carrier service will be utilized

Hair picked up from suppliers weekly

• New York City and Philadelphia deliver to NY factory

• San Francisco and Los Angeles deliver to CA factory

Hair delivered to city’s EcoGrow facility

Hair Delivery

EcoGrow

Hair Processing

Boiling

• 212°F water

• Rids hair of loose dirt particles

• Denaturification: breaks apart hydrogen bonds, beginning decomposition process

Compression Molding

• 10 lbs of denatured hair falls into cavity

• Brick-shaped metal mold clamps down on hair, molding it into a brick

• After settling, mold lifts up and hair moves onto packaging stage

EcoGrow

Packaged 10 pound brick

Sold to household gardeners

EcoBrickTwo hundred EcoBricks sold as one unit

Sold to farms

EcoTon

Final Products

EcoGrow

Physical Channels

ConsumersDistributionProduction

EcoGrow

Contract Truck Carriers

Large Farms

Small Farms

UPS Households

Exclusive distribution

intensity

e-commerce

EcoGrow

Contractual Vertical Marketing System

Sets rules within distribution chain for each channel member

Suppliers, EcoGrow, distributors, and consumers all maintain independence

Allows for streamlined contractual oversight of each channel member

Physical Channel Integration

EcoGrow

Marketing Channels - Tangible

Connects Facebook/Twitter pages with other

users

LinkedIn contains detailed company

info

Tracks visitors and displays ads to

potential customers

Ensures that EcoGrow is high up on search

engine results

Website Pages Business Account

Google PPC Ads

Search Engine Optimization

Provides basic product and purchasing information

EcoGrow

Networking

Marketing Channels - Intangible

• Utilized for large and small farm segments

• Allows sales force to build relationships with individual farms

• Increases customer retention

EcoGrow

Product 2019 Pricing 2020 Pricing 2021 Pricing 3 Year Pricing Increase (%)

EcoBrick $3.25 $3.25 $3.25 0%

EcoTon $500 $520 $540 8%

Average one ton conventional fertilizer

$623 $660 $698 16%

Three Year Pricing Model

Penetration PricingValue-based

Pricing

• EcoBrick: Fixed Pricing

• EcoTon: Dynamic Pricing

• Volume-based Pricing

EcoGrow

Three Year Sales Forecast

EcoTons sold EcoBricks sold Gross Revenue

2019 3105 19830 $1,616,948

2020 5010 24320 $2,684,240

2021 6970 30240 $3,862,080

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

1 2 3

Gross Revenue

EcoGrow

Begin online channel

marketing

• Constantly going throughout plan

• Targets small farms and households

Focus on small farms

• Networking

• Establish a foothold

Shift focus to large farms

• Networking

• More bureaucracy

Customer Acquisition Costs – Promotional Plan

Total Customer Acquisition Costs: $97,980

EcoGrow

Activity Cost per Ton-Mile Tons Transported 2019 Cost

Transportation to Facility $0.80 3,204 $305,035

Hair Handling $0.60 3,204 $1,922

Customer Distribution $0.90 3,204 $493,119

Totals $2.30 3,204 $800,076

Distribution Costs

• Long distances

• Intra-city traffic

• Heavy loads

EcoGrow’s largest expense is distribution

Total Distribution Costs: $800,076

EcoGrow

Owners

Sales Manager

Sales Rep Sales Rep Sales Rep

NY Head Engineer

CA Head Engineer

Distribution Manager

Company Service Liaison

Organizational Structure

Total Payroll Expenses + Salary Burden: $772,675

EcoGrow

2019 2020 2021

Operating Revenue 1,616,949 2,684,240 3,862,080

Cost of Goods Sold 80,203 128,412 178,181

Gross Profit 1,536,746 2,555,828 3,683,899

Operating Expenses 2,042,487 2,557,853 3,104,273

Tax Expense (101,148) (405) 115,925

Net Income (404,593) (1,620) 463,701

-25% 0% 12%

Income Statement

Take-home profit continues to increase each year

EcoGrow$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Jan-19

Mar

May

Jul

Sep

No

v

Jan-20

Mar

May

Jul

Sep

No

v

Jan-21

Mar

May

Jul

Sep

No

v

EcoGrow - Cash Flow

EcoGrow

Funding

Owner Funds○ $100,000 from each

owner

○ 25% of total funding

$600,000

$200,000

Bank Loan○ $600,000

○ 8% interest rate

○ Five years

○ 75% of total funding

EcoGrow

EcoGrow – Amortization ScheduleLoan Amount Interest Rate Term Start Date

$600,000 8% 5 Years Jan 2019

Summary of Payments and InterestMonthly Payment $12,166

Total Interest Paid over Life of Loan $129,950

Interest Paid in 2019 $44,326Interest Paid in 2020 $35,888Interest Paid in 2021 $26,749

EcoGrow Payment ScheduleYear Annual Principal Paid Annual Interest Paid Total Interest Paid Loan Balance

Begin $0 $0 $0 $600,0002019 $101,664 $44,326 $44,326 $498,336

2020 $110,102 $35,888 $80,214 $388,234

2021 $119,241 $26,749 $106,963 $268,993

2022 $129,137 $16,853 $123,816 $139,8562023 $139,856 $6,134 $129,950 $0

EcoGrow

“Disruptive Innovation” Business Model

Thank YouSusheel Cheeti+1 (425) 394-2636

susheelc@ecogrow.com

www.ecogrow.com

Nikhil Ghangurde+1 (425) 209-7524

nikhilg@ecogrow.com

www.ecogrow.com