Carts and Tools Technology, Inc. Business Strategy Overview

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

2. www.cartsandtools.com
A Quandary
“Get Big or Get Out.”
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
2013 Carts and Tools Technology, Inc.

3. www.cartsandtools.com
Global issues reveal opportunities for
small farm equipment providers
Food purchasers increasingly want to have
a personal impact on these large issues.
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Reducing carbon emissions.
Reducing habitat destruction.
Pollution of land and water.
Brooklyn Rooftop Garden - NYC
They are buying foods with
intention.
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2013 Carts and Tools Technology, Inc.
They are asking where did
it come from?
How was it grown?
Is it healthy for my family?
Our Table Cooperative – Sherwood, Oregon
CSA Bags Ready For Delivery

4. www.cartsandtools.com
Market Opportunity
The 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.
Winter Green Farm, Noti, Oregon - Growing organic, local food since 1980
2013 Carts and Tools Technology, Inc.

5. www.cartsandtools.com
Our Business
We create innovative tools that solve the needs of small market
growers and large home gardeners to provide local and sustainable
foods.
• 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.
Paul Shaw – Our Table Cooperative, Sherwood,
Oregon Farm Manager and “The Chicken
• Electronic controls and sensors
Whisperer” using Tillie.
• Convert “Drone Tech” (guns) to “Ag
tech (butter).
2013 Carts and Tools Technology, Inc.

6. www.cartsandtools.com
Problems Create Opportunities
Established farm tool manufacturers do not provide
tools scaled to the small farm movement.
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Most products are too big and expensive.
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Don‟t adapt easily to diverse conditions.
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Inefficient at small tasks and lack precision.
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Rely on non-renewable energy resources.
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Legacy architectures inhibit innovation.
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Constrains land use options.
2013 Carts and Tools Technology, Inc.

7. www.cartsandtools.com
Current Solutions Create Opportunity Too
For example, Walk-behind tillers.
BCS tractor - best in class.
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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
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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.

8. www.cartsandtools.com
Our First Products
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.
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2013 Carts and Tools Technology, Inc.
Battery Powered
Professional Quality
Versatile
Sustainable
Patent Pending
Shipping & in use on
farms today

9. www.cartsandtools.com
Solar Charging
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.
2013 Carts and Tools Technology, Inc.

10. www.cartsandtools.com
The Next Generation
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.
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Enhance precision cultivation.
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In-row weeding using sensor based
technology.
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Assists harvesting small plot specialty
grains.
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Smart tools that follow the worker.
Sweetwater Farm, Creswell, Oregon
Using first production Tillie.
2013 Carts and Tools Technology, Inc.

11. www.cartsandtools.com
The Team
Michael McGowen
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.
2013 Carts and Tools Technology, Inc.

12. www.cartsandtools.com
The Team
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,
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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
David Bassett
Rebecca has a Masters in Journalism and is a freelance photographer and
writer for several publications in the Northwest She writes our featured stories.
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.
2013 Carts and Tools Technology, Inc.
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.

13. www.cartsandtools.com
Traction
May „13
June
July
Aug.
Sept.
adopters.
who‟s
~Filed patent application.
~Launched a full-featured responsive website.
~Received first on-line order.
~Reached 1235 likes on Facebook.
~Began production shipments to our early
~Shipped to Johnny‟s Seeds, a major re-seller
product catalog ships to over 1.0 million growers,
~Introduced Solus, our electric wheel hoe.
~Added a 36V solar panel charging
option.
Tines Ready For Installation on Tillie
2013 Carts and Tools Technology, Inc.
~Johnny‟s Seeds has approached us
regarding distribution of our tools.

14. www.cartsandtools.com
Business Model
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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 inhouse 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.
Paul Harcombe – Harcombe
Farm, Albany, Oregon Using an
early prototype to weed flint
corn.

15. www.cartsandtools.com
Marketing Strategy
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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.

16. www.cartsandtools.com
Financials
2013 Carts and Tools Technology, Inc.

17. www.cartsandtools.com
Capital Sought
$300, 000 new funds
Previous investors
– 60K Founder
– 35K Harcombe Family Trust
– 40K Dreamcatcher Investments
Use of new funds
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Engineering – Staff, new products
Patent Expense
Marketing Expansion - Increased exposure
Manufacturing – Improvements, cost reductions
2013 Carts and Tools Technology, Inc.

18. www.cartsandtools.com
By The Way
You can find us at…
www.cartsandtools.com
Email us at…
info@cartsandtools.om
michael@cartsandtools.com
brad@cartsandtools.com
2013 Carts and Tools Technology, Inc.