Slide 1 Pacific CleanTech is a veteran owned and operated sustainable solutions cooperative Our mission: To provide cost effective on-site waste management solutions while Providing good jobs for veterans We make money when we help companies save money Our business is a fully registered limited liability company with a federal tax ID code and the appropriate business licenses. We started approximately a year ago, beginning with developing the business concept, then the business plan, market/industry analysis and trends, and our risk analysis. We conceived of a business that aims to accomplish two objectives: The first objective is to improve the environment by assisting businesses become more sustainable without increasing their cost. The second objective is to reduce the higher than average veteran unemployment by providing good jobs. We have a unique business model where our revenue/profitability is incentivized; we make money only when we save businesses money.
Slide 2 Problem: businesses are paying too much Businesses are not effective in managing waste The Waste Industry is controlled by a hand-full of key players These waste haulers dominate rates Companies end up pay more than they should for waste service They lack experience and time to manage their own waste effectively There is a real difference between what companies ARE paying and SHOULD be paying Multi-unit facilities and businesses have a unique problem in regards to their waste management. First, multi-unit facilities are forced to have many dumpsters spread around their facility. It is impractical to have all employees, residents or guest carry their trash a lengthy distance to a centrally located dumpster. However when business do have many dumpsters spread around the campus, the generation of trash in these different areas does not follow a regular pattern making any kind of regularly scheduled pickup inefficient. The result is that most business are forced to pay for a service in which they only utilize a small percentage of available dumpster space.
Slide 3 Product: waste analysis + porter service Provide comprehensive audit and analysis of a company s waste stream Where, how much, what kind, when Implement a porter service Waste is collected in trainable carts Waste is hauled to a compactor The compactor is emptied only when full (1-2 times a week) We provide value to the customer with two key services: an extensive multi-week audit that carefully examines every detail of a company s waste procedures, and a porter service. The audit reveals where the inefficiencies are. For example, we are able to determine if there are too many dumpsters, what kinds of waste are being emptied into the dumpsters, and how much square yardage per dumpster is available versus how much is being effectively utilized, among many other problems. Using the audit as a roadmap, we then provide a recurring porter service. The service is simple: trash is thrown into dumpsters, we collect the dumpsters and take them to a compactor on site, we compact and reduce the waste, and call a hauler to pick it up only when the compactor is full. Instead of having a garbage truck make 4-5 visits a week and empty a bunch of dumpsters that may or may not be full (and charge fees for every dumpster), the garbage truck comes 1-2 a week and empties a compactor.
Slide 4 Proof of Concept Dean David Pike is interested and enthusiastic Lou Magana & Charles Thomas of USD In talks with VP of EDCO We spoke to and passed along our USD audit results to Dean Pike. He was enthusiastic about our service and encouraged us to develop the idea further and get USD on board. We met with Lou Magana (General Services Manager) and Charles Thomas (Grounds and Transportation Manager) here at USD about implementing our service on campus. In discussing our analysis and the inefficiencies currently at USD, we learned that our porter service would greatly benefit the campus in regards to both sustainability and cost. As a result, they have requested a formal business proposal that identifies return on investment and cost savings for USD, which will in turn be passed up. The result of this is USD may become a client of Pacific CleanTech. The drafting of this business proposal is currently in progress. We spoke to John Snyder, Vice President of EDCO about our service at USD. EDCO is currently the only business in San Diego that has a single-stream recycling facility. They are interested in our concept and about helping us provide the service.
Slide 5 Business Model converting value into cash Pacific CleanTech has a unique business model Revenue and net income are incentive based The more we save, the greater our revenue USD is being charged $12,000 a month for waste services If $12,000 is reduced to $7000, Pacific Clean Tech takes a percentage Our service costs nothing to the customer We have a unique business model. Essentially, our service is free to our customers. Clients will never pay out of pocket for our service (including the audit). Instead, we operate within the margins and costs of the waste hauler. For example, USD is currently paying $12,000 a month to Waste Management for hauling services (we gathered this data from USD s invoices). In performing a waste audit we calculated that our porter service can reduce USD s bill by several thousand dollars. We take a percentage of the savings, and pass the rest onto the customer. This revenue stream is recurring every month, as are the savings for the client. The result of this business model is that our service is entirely incentivized. Our goal is to reduce the bill by every possible method at our disposal, thus allowing us to increase our revenues and pass on greater savings to the customer. Everybody wins in this situation.
Slide 6 Market Waste Industry: $55 billion dollar a year Growing demand from public and private sectors to be environmentally efficient There are no companies with dominant market share Addressable market in San Diego: all multi-unit facilities Military installations Shopping centers/malls Residential apartment complexes/condominiums Hospitals Universities The US waste industry is massive: $55 billion dollars a year. Most of this industry is dominated by large corporate haulers like Waste Management and Republic. The dominance of these large corporate haulers allow small, nimble companies to enter the market and take advantage of their inefficiencies to create value. Furthermore, there is growing demand within the public and private spheres to be more environmentally efficient. Legislation in Sacramento like bill AB-341 are mandating that businesses reduce their carbon footprint and divert waste from landfills. No new landfills have been constructed in the US since the 1970 s. As a result, there is a real need in the market for a service that can reduce waste. There is little competition for us in this industry. The idea of waste reduction/consulting is still relatively new, and there are only a few companies in the entire country providing this service. The growth potential is massive, especially in San Diego/Southern California. Our service works best for large installations that produce lots of waste in many different areas. Our addressable market for San Diego includes military bases (there are over 9 military bases located here), shopping centers and malls (there are at least half a dozen large malls alone that would benefit from our service), large apartment complexes, hospitals, and universities like USD, SDSU, and UCSD.
Slide 7 Competitive Advantage New industry with solid future growth No clear dominant market leaders Pacific Clean Tech is a disabled veteran owned business 3% of all government contracts (both federal/state) must go to disadvantaged businesses As mentioned earlier, our service is new within the overall waste industry. As such, there aren t any clear market leaders providing our service. The few companies that compete with us are sporadically located throughout the US and are mostly focused on providing auditing/consulting services. Most offer no porter service. Our competitive advantage lies in that we provide both analysis and porter service. This has the added effect of allowing us to create jobs for veterans. There is also a lot of positive publicity to be gained as a veteran owned and operated business. Our other competitive advantage lies in that we are a disabled veteran owned business. There are both federal and state statutes that require 3% of federal and state contracts to go to disadvantaged owned businesses, of which ours falls into that category. We aim to provide our service to large government properties, like military bases and prisons, which are notoriously inefficient/wasteful. Often times, the government fails to meet these 3% thresholds because there are too few businesses that fall in the category.
Slide 8 The Team Ben Patterson (President and founder) United States Coast Guard veteran 10 years of extensive experience in developing waste solutions James Pendarvis (Vice President) United States Navy veteran Spearheaded business development 12 months with the company Our team is our most valuable asset. Ben Patterson is the president and founder of Pacific CleanTech. He grew up within the waste industry and offers over 10 years of experience in developing waste solutions. Furthermore, he is a veteran of the US Coast Guard, where he served a rescue swimmer, helping save the lives of stranded people at sea. James Pendarvis was brought on as Vice President in February of 2013. He has helped develop the business from the beginning, writing the business plan, and creating pro-forma financial statements and environmental analyses with Ben. He is a veteran of the US Naval Submarine service, where he operated fire control and weapons equipment aboard nuclear powered submarines. As veterans, we are aware of the difficult transitions service members face upon their arrival back into the civilian world. Many service members deal with underlying Post Traumatic Stress Disorder, and have a hard time relating their experiences to civilians who simply can t understand what people in the military go through. Many of the skills veterans learn are not transferrable to the civilian world, which makes finding jobs and affordable housing difficult. Because of this, we are committed to being a socially responsible business: not only do we aim to make the world greener, we aim to reduce veteran homelessness by providing jobs through our porter service.
Slide 9 We seek $35,000 in funding Funding To purchase: Trainable dumpsters- Compactor- Trailer - Marketing- Our funding goals are simple: we seek $35,000 in funding to purchase trainable dumpsters, a compactor, a trailer, and to further market the business. The acquisition of these items will allow us to immediately begin operations with the University of San Diego.
Slide 10 Contact Ben Patterson President ben@pacificcleantech.com James Pendarvis Vice President james@pacificcleantech.com