carts and tools business strategy overview nov. 2013

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2013 Carts and Tools Technology, Inc. www.cartsandtools.com Revolutionary Precision Cultivation Tools

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Carts and Tools Technology, Inc. Business Strategy Overview

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Page 1: Carts and Tools Business Strategy Overview  Nov. 2013

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Revolutionary Precision Cultivation Tools

Page 2: Carts and Tools Business Strategy Overview  Nov. 2013

“Get Big or Get Out.”

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Earl Butz - Secretary of Agriculture, commenting on the future of

farming, 1975.

“The correlation between poverty and obesity can be traced to agricultural policies and subsidies.”Michael Pollen – Author, journalist,

professor

A Quandary

Page 3: Carts and Tools Business Strategy Overview  Nov. 2013

Food purchasers increasingly want to have a personal impact on these large issues.• Reducing carbon emissions.• Reducing habitat destruction.• Pollution of land and water.

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Global issues reveal opportunities for small farm equipment providers

Our Table Cooperative – Sherwood, Oregon

CSA Bags Ready For Delivery

They are buying foods with intention.• They are asking where

did it come from?• How was it grown?• Is it healthy for my

family?

Brooklyn Rooftop Garden - NYC

Page 4: Carts and Tools Business Strategy Overview  Nov. 2013

Market OpportunityThe size and growth of the market farmer segment is significant. • Over 2.0 Million small farms per the 2007 US Census of

Agriculture.• 111,839 new small farms since 2002.• Maine alone has added 10,000 small farms in 15 years.

• 8100+ active farmers markets, an increase of 53% in 10 years.

• 8000+ Community Supported Agriculture (CSA)programs.• 29 million households engage in backyard gardening.

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Winter Green Farm, Noti, Oregon - Growing organic, local food since 1980

Page 5: Carts and Tools Business Strategy Overview  Nov. 2013

Our Business

• Scaled to small farm’s needs.• Affordable, professional quality. • Highly efficient, adaptable to

different conditions, • Leverages high tech components

in market grower applications. • Battery powered, solar

charging. • Brushless DC hub motors.• Electronic controls and sensors• Convert “Drone Tech” (guns) to

“Ag tech (butter).

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Paul Shaw – Our Table Cooperative, Sherwood, Oregon Farm Manager and “The

Chicken Whisperer” using Tillie.

We create innovative tools that solve the needs of small market growers and large home gardeners to provide local and sustainable foods.

Page 6: Carts and Tools Business Strategy Overview  Nov. 2013

Established farm tool manufacturers do not provide tools scaled to the small farm movement.

• Most products are too big and expensive.

• Don’t adapt easily to diverse conditions.

• Inefficient at small tasks and lack precision.

• Rely on non-renewable energy resources.

• Legacy architectures inhibit innovation.

• Constrains land use options.

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Problems Create Opportunities

Page 7: Carts and Tools Business Strategy Overview  Nov. 2013

For example, Walk-behind tillers.

BCS tractor - best in class. • Unwieldy for cultivating between rows.• Once you’ve tilled it sits unused rest of

the year.• It’s a beast.

Mantis tiller – over 2 million sold• Tine design relies on high-speed

operation which causes it to skip over the ground.

• Conversion from gas to electric does not solve the problem of being too ineffective for the serious grower.

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Current Solutions Create Opportunity Too

Page 8: Carts and Tools Business Strategy Overview  Nov. 2013

Our First Products

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Tillie and Solus are part of our first generation set of tools that are green, innovative, affordable and leverage technology to enable small farmers to increase productivity and profits.

• Battery Powered• Professional Quality• Versatile• Sustainable• Patent Pending• Shipping & in use on

farms today

Page 9: Carts and Tools Business Strategy Overview  Nov. 2013

Solar Charging

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Global Nutrition Empowerment is an international non-profit dedicated to improving nutrition and preventing micronutrient deficiencies in women and children.

Spring 2014 GNE is taking 2 Tillie’s with

our new solar charging panels to

Nepal.

Page 10: Carts and Tools Business Strategy Overview  Nov. 2013

The Next Generation

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Quatrus is the two-wheeled, powerful, all electric platform from which an entire new classification will emerge. It is the core of our second generation tools. • Enhance precision cultivation.

• In-row weeding using sensor based technology.

• Assists harvesting small plot specialty grains. 

• Smart tools that follow the worker.

Sweetwater Farm, Creswell, OregonUsing first production Tillie.

Page 11: Carts and Tools Business Strategy Overview  Nov. 2013

The TeamMichael McGowen

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Carts and Tools has existed in Michael McGowen’s mind and garden for several years. • Michael has successfully created manufacturing

businesses in the technology sector; guiding them from startup to IPO to acquisition.

• Michael is a lifelong entrepreneur and backyard farmer and developing small farming implements that solve the problems for a market gardener has been his passion.

Brad brings marketing, product development, branding and businesses development knowledge.• Brad has held senior management buying

positions with Macy’s, Target and Montgomery Wards and Citibank in NYC.

• Brad was the Director of Business Development and Marketing for an entrepreneurial pre-IPO start-ups, IvyExec.com, recently named one of INC’s 500 fastest growing companies.

Page 12: Carts and Tools Business Strategy Overview  Nov. 2013

The Team

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

.

Rebecca Barnhart

Jorge Baneulos Jorge has his Mechanical Engineering degree from OSU, is our lead engineer and began his design career in 1998. Jorge is the principal owner of Lindero Engineering a mechanical design firm located in Corvallis, Oregon,

Jarred Miller Jarred is a 2013 Graduate of Oregon State with a degree in Mechanical Engineering. Jarred contributed to CAD and design work in the summer of 2013.

Karissa Moore Karissa is a senior Marketing major at OSU and has been managing the social media efforts for us. Karissa also creates content for our website.

Tyler Hansen Tyler is a junior Marketing major at OSU and is responsible for all the great video on both the website and our YouTube channel. Check it out.

Rebecca Barnhart

Rebecca has a Masters in Journalism and is a freelance photographer and writer for several publications in the Northwest She writes our featured stories.

David Bassett Dave is the owner of Bassett Studios and is the creator of all of our awesome product shots you see on the Carts and Tools website.

Amy Dasso Amy owns Dasso Design and has her degree in Graphic Design from OSU. She is responsible for the look and feel of the Carts and Tools brand.

Andrew Dwyer Andrew is a junior Horticulture major at OSU and recently transferred from upstate NY. Andrew is working as our lead assembly person, building our tools.

Page 13: Carts and Tools Business Strategy Overview  Nov. 2013

TractionMay ‘13 ~Filed patent application.June ~Launched a full-featured responsive website. July ~Received first on-line order. Aug. ~Reached 1235 likes on Facebook.Sept. ~Began production shipments to our early adopters.

~Shipped to Johnny’s Seeds, a major re-seller who’s product catalog ships to over 1.0 million growers, ~Introduced Solus, our electric wheel hoe.

~Added a 36V solar panel charging option.

~Johnny’s Seeds has approached us regarding distribution of our

tools.2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Tines Ready For Installation on Tillie

Page 14: Carts and Tools Business Strategy Overview  Nov. 2013

Business Model• Direct to consumer with 60%+ initial

margins.• Average customer order exceeds

$1000.• Ecommerce website focused on

content generation and extensive social media outreach.

• Will partner with select ecommerce and mail order retailers.

• Use contract fabrication facilities with in-house final assembly and testing.

• Continuous process improvement to lower costs.

• Leverage lifetime value of customers through new product introductions. 2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Paul Harcombe – Harcombe Farm, Albany, Oregon

Using an early prototype to weed flint corn.

Page 15: Carts and Tools Business Strategy Overview  Nov. 2013

Marketing Strategy• Create a strong presence on

social media channels creating community.

• Curate timely website content to attract re-occurring traffic.

• Leverage print advertising in key publications.

• Exhibit at regional and national conferences and events.

• Run targeted on-line banner advertising.

• Maximize SEO through constant website improvements.

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Page 16: Carts and Tools Business Strategy Overview  Nov. 2013

Financials

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Page 17: Carts and Tools Business Strategy Overview  Nov. 2013

Capital Sought$300, 000 new fundsPrevious investors

– 60K Founder– 35K Harcombe Family Trust– 40K Dreamcatcher Investments

2013 Carts and Tools Technology, Inc.

www.cartsandtools.com

Use of new funds– Engineering – Staff, new products– Patent Expense– Marketing Expansion - Increased exposure– Manufacturing – Improvements, cost

reductions