1. CHARtruce
EXPLORING THE ENVIRONMENTAL, SOCIAL
AND ECONOMIC VALUE OF BIOCHAR
ON BAINBRIDGE ISLAND
KELLY BETHKE . DOROTHY CLEGG . MOLLY MOORE . AMANDA THORNTON
ABSORBING TOXINS ONE ROOM AT A TIME

2. 2
TABLE OF CONTENTS
THE TEAM .....................................................................................................................................................
EXECUTIVE SUMMARY..................................................................................................................................
VISION AND PURPOSE..................................................................................................................................
BUSINESS MODEL CANVAS..........................................................................................................................
WHAT IS BIOCHAR?......................................................................................................................................
BYPRODUCTS.....................................................................................................................................
VALUE PROPOSITION....................................................................................................................................
DASHBOARD OF KEY PERFORMANCE INDICATORS..................................................................................
FINANCIAL ANALYSIS...................................................................................................................................
EXTERNAL ENVIRONMENT ............................................................................................................................
TARGET MARKETS...........................................................................................................................................
MARKET ANALYSIS..........................................................................................................................................
COMPETITOR ANALYSIS..................................................................................................................................
RISK ANALYSIS..................................................................................................................................................
IMPLEMENTATION ROADMAP.........................................................................................................................
CONCLUSION...................................................................................................................................................
EXHIBITS..............................................................................................................................................................
APPENDICES......................................................................................................................................................
ENDNOTES.........................................................................................................................................................
ACKNOWLEDGEMENTS
We offer our deep appreciation to the array of individuals who shared their expertise, time, facilitates and
talent with us. Art Donnelly founder of SeaChar who graciously volunteered his time and talent in the biochar
workshop and the many phone calls. Drew Reynolds at Coyote Woodshop who spent an entire afternoon and
many phone calls sharing his expertise in financial models and the hopes and dreams of Coyote Woodshop.
Teri Bellamy spending countless hours in financials. Bert Loosmore in his gracious long phone conversations
regarding energy production and ROI. Jeff Wallin co-founder of Biochar Foundation. Hannah Erickson founder
of Carbon Roots International for the many connections. Marsha Willard and her expertise in Sustainable
dashboard design, and presentation support. Shannon Welsh for her countless hours in helping construct our
first prototype. Danae Moore for the creation of our logo, tag, and prototype sketches. And all the other
support we have gained along the way in our biochar journey.

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VENTURE TEAM
Amanda Thornton - OPERATIONS LEAD
Amanda is passionate about operational efficiency and the
collaborative nature of working in teams offering a wide range of skills in
participatory approaches and applications. With an awareness and
understanding of the ecosystem of the Pacific Northwest, she infuses her
understanding of the dynamic nature of change in human systems as the
operations lead of CHARtruce. With over seven years of small business
operations management, Amanda has numerous connections to the
local community she serves.
Kelly Bethke - SALES LEAD
Kelly has worked in start-up, dot.com, and large corporate environments.
Her experience ranges across the areas of sales, marketing, research,
strategy, business development and management. Over the past 15
years, Kelly has also been associated with many social and charitable
organizations including Junior Achievement, The Ombeni Foundation
Tanzania and Impact Austin. When not pursuing her MBA from BGI, she
enjoys time with her family in Texas.
Molly Moore - FINANCIAL LEAD
A graduate of University of Redlands, Molly majored in Environmental
Science. As Executive Director of Clubs and Organizations, Molly was
responsible for the committee budget, keeping it current and in the
black during her two years as Director. She was also Founder and
President of Kappa Pi Zeta. Molly has held a number of internships,
including Sustainability Division Intern at McKinstry Co., Volunteer
Coordinator at Mountains to Sound Greenway Trust and now Recycling
and Waste Prevention Intern at Seattle Public Utilities.
Dorothy Clegg - MARKETING STRATEGY LEAD
Dorothy has been calling Hawai‘i home for the past thirty years. She has
acquired three undergraduate degrees and currently is working on her
MBA in Sustainable Systems. Over the past 30 years she has been a pilot
for Continental/United Airlines. More recently Dorothy is known for being
an integral part of Hawai‘i becoming the first state in the nation to
become single-use plastic bag free. Dorothy’s passion for sustainability
and the triple bottom line concept run deep and achieving her MBA will
be her stepping stone to furthering the momentum for Hawai‘i to
become a sustainable island.

4. 4
EXECUTIVE SUMMARY
CHARtruce is inspired by the fact that toxic chemicals are increasingly found in consumer
products in the United States, leading to increased exposure to toxicity and adverse
human health effects. The average human body contains 232 toxic chemicals. A few of
the documented health impacts include cancer, endocrine and thyroid disease, obesity,
heart disease and infertility.1 Our team is committed to making positive changes in human
health; we are repositioning, redesigning, reframing and rethinking a future in which
exposure to harmful chemicals is eliminated.
Over the past ten weeks, we have researched the benefits of biochar. Historically, this
product has been used to improve soil quality and increase crop potential. Currently the
market for biochar is primarily as a soil amendment or alternative energy source and can be
seen in the climate-offset market. Our efforts exposed a market opportunity in the U.S. for
absorbing toxins to create a healthier indoor environment. Biochar is capable of absorbing
toxins with a 70 square foot radius (the approximate size of one room in the U.S.).2
Domestically, there is not yet an affordable and mainstream in-home toxin remover. We
intend to fill this space with a lower price point and attractive fabric exterior which will
appeal to our target audiences.
Our research took us back to the place we began this year-long project: Bainbridge Island,
Washington. There, we will partner with a local company, Coyote Woodshop to create our
CHARtruce product, while simultaneously contributing to a new emerging industry with many
potential triple bottom line benefits. The waste stream produced by the mill will become the
feedstock or source for our biochar raw materials. What once was expensive waste for our
partner will be placed in a gasification machine to produce biochar as well as energy. The
biochar will be placed in up cycled or organic fabrics, which will be sewn by fair wage
1 www.unacceptablelevels.com/
2 http://mosonatural.com/

5. 5
employees for the sake of lowering household toxins. The harnessed energy will dry future
raw materials and provide heat and electricity as well. The effort to serve people, planet,
profit and our purpose are all fulfilled.
VISION AND PURPOSE
Our vision is to create a high quality, safe and cost efficient product that everyday
consumers can use in their home to create a safer, healthier space. Replacing chemical-
laden furniture and appliances can be challenging and cost prohibitive. We have
designed simple and affordable household air purification products that can be placed
anywhere indoors. The purpose of CHARtruce is to absorb odors and airborne chemicals
into the biochar, thus reducing the amount of chemical toxicity our customers are exposed
to in their home. The biochar for each of our products is created with what would
otherwise be waste in a landfill. Our business model closes the loop on locally produced
feedstock. End-of-life directions for our inserts result in placing the biochar in nearby yards
or gardens which enriches the soil health and sequesters CO2. CHARtruce improves plant
life, helps combat global climate change and creates an effective product our consumers
can enjoy with peace of mind.

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THE BUSINESS MODEL CANVAS
Figure 1: Business Model Canvas
Coyote Woodshop (Coyote) based on Bainbridge Island, Washington specializes in custom
furniture, salvage lumber and milling. In partnership with Coyote, our team has developed
a business model that will take advantage of the waste biomass that accumulates at their
wood mill. All their lumber is locally and sustainably harvested or salvaged from the urban
and suburban region. The surplus lumber and production remnants that are not used for
customer furniture currently are being stored on the 10-acre plot of land. This poses the
question of waste management and removal service in the most affordable and
environmentally responsible manner possible. Coyote is interested in finding alternative

7. 7
ways in which to remove unwanted lumber and waste. Our solution is to burn the material
with a gasification machine to convert their accumulated waste into biochar. Proven
benefits of biochar include: soil enhancement, renewable energy, permanent carbon
sequestration.3
WHAT IS BIOCHAR?
Biochar is a carbon-rich, charcoal material. It is biomass, which is thermally treated in the
absence of oxygen. This material is created in a process called pyrolysis, which breaks down
biomass by heating it to extremely high temperatures. Through this technique, carbon is
trapped in the biochar and is not released in the atmosphere. Biochar can be produced
from many different forms of feedstock, such as wood, food scraps and agricultural waste.
Traditionally, biochar was designed as an additive to soils, capable of sequestering carbon
from the environment and the soil in which it was placed. In our research, we distinguished
that soil improvements attributed to the addition of biochar included an increase of moisture
retention, improved air quality, increased buffering of soluble organic carbon and fostered
synergistic interactions with microbial populations. 4
Biochar can store carbon in the soil for hundreds, possibly thousands of years. Its primary
function is the amendment of soil. Additionally, according to International Biochar Initiative,
pyrolysis based biochar systems can potentially reduce one ton of CO2 per ton of biomass
used.5 Biochar scope is manifold. Although the term biochar is a recent adoption, it is
actually an ancient substance. Creation of this material has been in use for thousands of
years dating back to 450 BC through AD 950.6 Biochar has been primarily promoted as a
form of carbon storage but its benefits reach far beyond that scope. The book Biochar for
Environmental Management suggests, “There is a need for mass awareness of biochar,
including the pros and cons, among various stakeholders. The main challenges are the
3 www.climatefoundation.org
4
http://www.biochar-international.org/sites/default/files/All-Biochars--Version2--Oct2009.pdf
5
http://www.biochar-international.org/biochar
6
http://en.wikipedia.org/wiki/Biochar#CITEREFLehmann2007a

8. 8
availability of sustainable sources of biomass and the accessibility of efficient biomass-to-
biochar conversion technologies.”7
BYPRODUCTS (SYNGAS AND ENERGY)
During the production of biochar using a gasification machine, pyrolysis of biomass produces
two primary byproducts: syngas and heat (kWh and BTU’s). Both byproducts can be utilized
to operate the machine and to heat the facilities of operation. The syngas byproduct is a
mixture of hydrogen, carbon dioxide, carbon monoxide, and other forms of carbon.8 Under
the controlled production conditions using the gasification machine, the carbon in the
biomass feedstock is captured in the biochar and the byproducts. The biochar product will
retain 33% of the original feedstock in a porous charcoal substance, and the remaining 70%
of the biomass feedstock will be converted into bio-energy, a combination of BTU’s and kWh.
It must be noted that in addition to the pyrolysis process, the biomass must be completely dry
before it can be burned. Understanding our bioregion, the lumber used has water retention
capability of up to 70%. Therefore, the biomass must be dried in a kiln to decrease the water
retention to a low as 10% prior to the pyrolysis process. Coyote Woodshop currently operates
an Ebac 3000 dehumidification kiln that holds up to 3000 board feet of lumber for a duration
of four to six weeks cycle time.9 We have identified in our financial analysis that the amount
of energy created as a byproduct of running the gasification machine would cover the
operation costs of running the gasification machine and, in addition, generate a generous
revenue stream producing an additional 1270 kWh per day.
The second byproduct of our gasification machine is the production of heat, or BTU’s. For
the purposes of this paper, we have concluded that more time would be needed to
quantify the exact amount of heat required in order to dry all of the biomass needed to
meet our production demand. We have identified that we will produce enough heat to
7
http://www.css.cornell.edu/faculty/lehmann/publ/Lehmann%20and%20Joseph%202009%20Introduction%20to%20Biocha
r.pdf
8
http://en.wikipedia.org/wiki/Syngas
9
http://www.coyotewoodshop.com/coyote/milling-and-drying/

9. 9
cover our drying costs for the dehumidification kiln, but are unsure of the exact operation
costs for the kiln. Therefore, more time would be needed to calculate whether this could be
a potential revenue stream.
VALUE PROPOSITION
As part of our systems analysis over the past year, we reviewed studies detailing the
bioaccumulation of chemicals found in our environment and identified an increasing
number finding their way into soil, water, air and our homes. We found that 25% of the U.S.
Gross Domestic Product is impacted by the chemical industry and over 96% of
manufactured products are touched by the business of chemistry and yet less than 1.2% of
these chemicals have been in tested by the EPA for human or environmental safety.10 This
increase of chemicals in our environment has caused a resultant rise in human exposure to
high levels of toxins. From our systems analysis paper, we have identified key leverage
points in changing the system to be governmental regulation coupled with transparency
and accountability within the chemical industry. We recognize the delay that occurs with
regulation and see that we can play an immediate role in eliminating the toxins that
surround us. Hence, CHARtruce was born.
Our team is pursuing the use of biochar as a means to improve indoor air quality. Biochar
is much too multifaceted to be used solely as a soil amendment-- the uses for biochar offer
many more beneficial purposes, (reference slide from presentation) from acting as a
vehicle for storage of volatile nutrients, toxins absorber, insulation in homes, or a filter in a
sewage plants. Biochar has the potential to be one of the decade’s most exciting fields of
research.11 Our indoor air purifiers are incorporating an ancient technique that is now at
the cutting edge of innovation. We provide safe, simple, cost effective and healthy
products that offer our customers peace of mind.
10
Team Flame White Paper
11
http://www.ithaka-journal.net/55-anwendungen-von-pflanzenkohle?lang=en

10. 10
DASHBOARD OF KEY PERFORMANCE INDICATORS
Table 1: Sustainability Dashboard
Our business model dashboard identifies sustainability as a vital, strategic trend in our
operation. Our venture team has pinpointed a set of core indicators summarizing our
sustainability efforts (See Table 1). It should be noted that we consider this dashboard to be
an ongoing process, utilized as a vehicle to engage stakeholders. Key stakeholders include
our local community, suppliers and business partners, governmental agencies,
environmental action groups and ultimately, our future generations. It is our hope that our
dashboard will serve as a purposeful document detailing our mission and values, while

11. 11
offering key metrics that will help engage our stakeholders. It will also serve as a tool to keep
the CHARtruce purpose and progress against goals visible.
Table 2: Goal Progress

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FINANCIAL ANALYSIS
Following initial investment from 4 founders, CHARtruce plans a five-phase approach to our
revenue sources and sales. Details and assumptions are offered in our business modeling.
Phase 1: Samples. While we are waiting for our gasification machine and other equipment
to arrive, we begin making samples. Phase 1 includes purchasing 202 gallons of biochar
for $350, which is enough biochar to create 2,100 12oz pouches. Along with fabric, thread,
zippers, and sewing technicians, this biochar will be used to make sample products for
potential retail customers.
Phase 2: Product 1 (Pouches). Beginning mid-March, Phase 2 calls for manufacturing of our
first product (See Figure 2). Our first product is a fabric shape (pyramid, cube, and
rectangular prism) that is filled with biochar. The fabric is organic cotton and is reusable. At
this point we will have our equipment purchased, delivered, and set up. During March
and April we will produce 500 products. By May we will be producing 1,000 per month with
a growth rate of 2% per month (24% per year). In Year 1 we will produce 9,583 products,
by Year 5 we will be producing 30,998 products, and by Year 10 we will be producing
90,875 products (See Graph 1).
Figure 2: Product 1

13. 13
Phase 3: the Refill (Refills). This Phase begins six months after we start making our first
product, which is September of Year 1. Since our biochar fill lasts six months, we created a
refill for our product so that customers can reuse the outside fabric and replace the
biochar fill. We will start by producing 200 refills in September of Year 1. The refills will
increase at the same rate as the first product. In Year 1 we will produce 824 refills, by Year
5 we will be producing 8,088 refills, and by Year 10 we will be producing 23,707 refills (See
Graph 1).
Phase 4: the Wood Box (Boxes). This Phase begins at the start of Year 2. CHARtruce will be
partnering with Coyote Woodshop to create a simple wood box that will hold a 12oz bag
of biochar (See Figure 3). These will be made by Coyote staff using waste wood scraps
that are left over from furniture production or unused pieces of wood. We will start by
producing 200 boxes in quarter one of year two. The boxes will increase at the same rate
as the first product. In Year 2 we will produce 873 boxes, by Year 5 we will be producing
1,682 boxes, and by Year 10 we will be producing 4,927 boxes (See Graph 1).
Figure 3: The Wood Box

14. 14
Phase 5: Biochar by the Pound (Biochar (10 lbs. bag)). This Phase also begins at the start of
Year 2. Since Coyote Woodshop has an abundance of wood waste, we will have extra
feedstock and biochar each year. Twenty percent of the biochar we produce will be
donated to schools and other community centered non-profits. The remaining eighty
percent will be sold wholesale to farmers for $0.44 per pound to encourage use of biochar
in their fields over chemical fertilizers. We will start by producing 122 bags in Quarter 1 of
Year 2. In Year 2 we will produce 487 bags. From Year 3 to 10 we will produce 102 bags a
year (See Graph 1).
Graph 1: Units Produced Per Year
As shown in Graph 1, we are producing a large number of Pouches relative to our other
products. This is also reflected in our sales numbers. In Year 1, we are making $185,577.38
in sales, 98% of which is from Product 1. By Year 5, we are making $718,538.18, 85% of
which is Product 1, 7% Refills, 7% Boxes, and less than 1% Biochar by the bag. By Year 10,
we are making $2,106,260.74 from sales with the same percent composition as Year 5 (See
Graph 2).
$0
$50,000
$100,000
$150,000
1 2 3 4 5 6 7 8 9 10
Years
Units Produced Per Year
Pouches
Refills
Boxes

15. 15
Graph 2: Sales Per Year
MAJOR OPERATING EXPENSES AND CAPITAL SPENDING
Major operating expense will start in Year 1 with the purchase of a gasification machine of
$27,000, a serger for $2,000, sewing equipment (scissors, needles, etc.) for $2,500, a
commercial fabric-cutting machine for $2,800, two sewing machines at $1,800 each, and
office equipment for $20,000. In Year 2, we start purchasing more sewing equipment every
two years. In Year 3, we purchase a biochar Packing machine for $2,000. By Year 8 some
of our equipment (serger, commercial fabric-cutter, & sewing machines) needs to be
replaced so we see capital expenditures of $10,900 (including additional sewing
equipment). By Year 10, our biochar packaging machine needs to be replaced and
additional sewing equipment is purchased for $4,500. See table below.
Equipment Purchase Date Total Price ($)
Gasification machine Year 1 (March) 27,000.00
Serger Jan-14 & Year 8 4,000.00
-$300,000
$200,000
$700,000
$1,200,000
$1,700,000
$2,200,000
1 2 3 4 5 6 7 8 9 10
Years
Sales Per Year
Sales for Pouches
Sales for Refills
Sales for Boxes
Sales for Biochar
(10 lbs. bag)

16. 16
Misc. sewing equipment
Year 1 (January), Year 2 (Quarter
1), Year 4, Year 6, Year 8 & Year 10
15,000.00
Commercial fabric-
cutter
Year 1 (January) & Year 8 5,600.00
Sewing machines Year 1 (January) & Year 8 7,200.00
Office equipment Year 1 (January) 20,000.00
Biochar packing
machine
Year 3 & Year 10 2,000.00
Total Equipment
Purchase
Year 1 – Year 10 82,800.00
FUNDING REQUIREMENTS AND PROJECTIONS
This business model is funded by the Char-truce team and founders. Each team member
contributes $40,000 for start-up costs. This gives us a total of $160,000 to finance the start-up
CHARtruce. We will use this money for our five phases and the expenses that are
associated with each. Based on projections from our five phases of start-up, we find the
break-even to be at 11,322 units of Product 1 and the associated refills (See Graph 3). This
break-even analysis was created using our year 1 fixed expenses of $153,672.78.

17. 17
Graph 3: Break Even
Based on this analysis, we project to see return on our initial investment in Year 4 (See
Graph 4). One reason this doesn’t occur until Year 4 is because we are hiring employees
at a living wage salary of $18.75 per hour. We want our employees to receive healthy
compensation for their work and are willing to push back our financial recovery in order to
achieve this.
Graph 4: Return on Initial Investment
$0
$50,000
$100,000
$150,000
$200,000
$250,000
# of Units
Break Even
Total Revenue
Total Costs
Total Fixed Costs
Total Variable Cost
-$200,000
-$150,000
-$100,000
-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
0 1 2 3 4 5
Year
Return on Initial Investment

18. 18
EXTERNAL ENVIRONMENT
ECONOMY
At present biochar is a small but growing market entity. In essence, it allows us to take what
would be waste, from crops, mills, compost facilities, and
more, to create a product that will actually decrease
environmental toxins and odors as well as levels of CO2.
From an economics perspective, anyone currently paying
for waste removal that is appropriate feedstock for biochar
stands to gain. For example, a farmer can benefit in more
than one way. Biochar is inexpensive to make. Farmers
can sell the byproduct of their crop waste, creating a new
source of income. Alternately, they can disperse and bury
biochar within their soil to create a richer planting medium, which will result in nutrient dense
soil for the subsequent crops.
Both options result in an economic gain for farmers worldwide (decreased cost of waste
collection, sales from product or improved crop yield). In addition to financial benefits,
according to Johannes Lehmann at Cornell University , 12% of greenhouse gas emissions
worldwide could be absorbed by the appropriate creation and use of biochar.12
TARGET MARKETS
Our target markets areas include the health sector, family households and the hotel and spa
industry. People with health problems, allergies, and those focused on their wellbeing are
the primary targets related to general health. We see this target market as one that will
12
https://www.google.com/search?client=gmail&rls=gm&q=johannes%20lehmann%20cornell%20university%2012
%25%20global#

19. 19
continue to increase considering the delay of health compromise from prior contact with
chemicals. Families, particularly parents, tend to want a safe environment for their child.
With greater awareness from media, NGO’s and improvements in regulation, this market will
continue to grow as well. The hotel and spa industry caters to clients who expect healthy
environments. CHARtruce allows this market the opportunity to provide visible evidence of
commitment to health along with possible custom or exclusive fabrics.
Our market channel will consist of online or brick and mortar sales in the beginning. As the
company matures and has a better understanding of the market, direct sales to large box
stores would be ideal. Just as other natural brands such as Method and Seventh Generation
have entered Target and Safeway, CHARtruce will be found as a mainstream offering with
broad audience appeal. This will require strategic marketing and excellent partnering
practices.
MARKET ANALYSIS
Regarding sales, a 2009 WSU study on biochar concluded that a good breakeven cost for
production was at $87 per metric ton. At that point in time, biochar was selling for
approximately $200/ton.13 This gives us some indication that the margins for biochar are
strong. Due to our unique marketing position, low overall COGS and lean production, we
are well above this anticipated sales margin.
As we have seen an increase in popularity and availability for earth-friendly products, the
market is favorable for new options. Based on one on-site market research exercise and two
Loopinion polls, our findings indicate level of knowledge for our customer base, level of
interest overall and approximate price points that would be optimal. We increased the price
by $5 based on follow up interviews we conducted with our target market
13 https://fortress.wa.gov/ecy/publications/publications/0907062.pdf

20. 20
MARKETING RESULTS

21. 21
Based in part on these results, the initial price of $24.99 will reflect quality and still allow for
sales success in the market. We anticipate our most frequent customer to be female. This
buyer will be interested in either improving air quality to help with allergies and chemical
sensitivities or removing toxins from the air for general health reasons. Our secondary market

22. 22
segment will be Green Backs, particularly parents, seeking a natural way to remove toxins
from their indoor living environment. Our third “dark horse” category would be to position
Char-Truce as an air-cleaning air freshener. This could draw a very large customer base.
According to a 2011 article, “Americans are expected to spend 1.72 billion dollars on air
fresheners this year”.14 There are long-standing and recent studies to support that biochar
functions as an odor neutralizer. Carbon has been used throughout the ages to absorb
odors. Due to the carbon rich nature of biochar it is a natural air freshener, moisture
balancer and soil enricher. 15 Washington and Oregon are currently working cooperatively
to solve large-scale odor concerns in areas such as paint factories, municipal waste and
compost and more. Tom Miles, a technical consultant for NW Biochar Working Group, stated
via email that WA Ecology at WSU Puyallup would do testing for this project.
The investor market is another supporting indicator that Char-Truce will be part of the healthy,
Green economy. “Proof comes from the MSCI KLD Social 400 Index (formerly the Domini
Social Index), which over the past 20 years has outperformed the S&P 500 on an actual and
a risk-adjusted basis”. (HBR The Big Idea: The Sustainable Economy by Yvon Chouinard, Jib
Ellison, and Rick Ridgeway) Based on this performance, Char-Truce is an environmentally
friendly company that stands to be equally, if not more, successful than its conventional
competitors.
There is a potential problem or unintended consequence with pursuing strictly economic
gains with biochar. If farmers plant crops based on what will burn best after harvest or start
to grow vast fields meant only for burning, we could run into a situation similar to that of corn
and soy. This could result in a large, quick boom of biochar in the market, a relatively quick
flood followed by a swift decline in value.
14
http://www.care2.com/greenliving/air-fresheners-easy-greening.html#ixzz2UsK25cYD
15
http://www.biocharnow.com/solutions/odor-control

23. 23
COMPETITOR ANALYSIS
Regarding competition, many associated entities are non-profit or work on the technical side.
International Biochar Initiative is a non-profit and doing great work particularly in R&D and
assistance in third world countries.16 Green Charcoal International has focused on design
and creation of equipment.17
16
http://www.biochar-international.org/
17
http://www.green-charcoal.com/solution
INDUSTRY
COMPETITORS
-Industrial scale
purifiers
-HEPA air filters
NEW ENTRANTS
- Business model is
easy to replicate
-Overseas
competition
-A large company
entering the market
that has established
distrbution channel,
brand identity
SUPPLIERS
-Wood waste/
feedstock
-Organic cotton
-Muslin, thread,
zippers, etc.
SUBSTITUES
-air fresheners
-scented candles
-baking soda
BUYERS/
CONSUMERS
-Health conscious
-People with allergies
-People who want
the best for their
family
-Hotels, spas

24. 24
CHARtruce is a for profit company which qualifies for B-Corp status after 6 months of the first
year (application results provided separately). While internationally there are companies
incorporating biochar into household items, we don’t see many domestic competitors.
Within the U.S. there are few companies selling biochar products for in-home use. None of
them are selling an air-cleaning product such as ours. A list of some international and
domestic suppliers and their products are as follows:
● Q Bedding (international: charcoal filled pillows, etc.)18
● Bambooya (international: air freshener, odor absorption, etc.) 19
● Green Yarn (domestic: cloth woven with biochar) 20
● Allerair (domestic: industrial scale air purifiers, etc.) 21
COMPETITIVE ADVANTAGE
Other than fabric and industrial size air filters, we have yet to find anyone who is
manufacturing or selling items specifically tailored for in-home use in the U.S. This places our
offering in a unique niche. While it does invite other established companies to quickly follow
suit, we would be the innovative front-runners. This means that we would need to work on
branding to ensure that association with these products links to our name. Also, being
mindful of strategic pricing will be important. More research of indirect competition can be
done to best position our offerings. One tactic for exposure could be to focus on the flame
retardant/lead/bishphenol-A sensitive groups. Our partnership with a relative NGO along
with providing education and as much awareness as possible via social media will lend
credibility and sense of urgency for our product. For now, we cannot find a non-toxic
product that is both mainstream and effective as an easy solution for the toxins in our homes.
18 http://www.qbedding.com/
19 http://www.bambooya.com/activated-bamboo-charcoal-carbon.html
20 http://www.buyactivatedcharcoal.com/product/eco_fabric/gray_dash
21 http://www.buyactivatedcharcoal.com/product/S-6200

25. 25
We could corner this area of the market and hold competitive advantage. Considering how
many people buy air fresheners to mask the smell in their surroundings, we anticipate that
this same group will be instantly drawn to a product that will actually remove harmful toxins
as well as de-odorize. Given that we are the only company to offer a product similar in
aesthetic appeal to mainstream air fresheners, this gives us a substantial competitive edge.
RISK ANALYSIS
The SWOT analysis (pictured below) depicts the internal and external areas of strength and
possibilities as well as areas for improvement or key indicators to keep a close eye on.
Strengths
First-mover advantage
Strong partnership with Coyote
Woodshop/Jams Hawaii
American made
100% organic/non-toxic
Net Zero Operation that supplies
power into the grid
Near Zero waste and toxins
operations
Easy of use
Weaknesses
Low level of biochar familiarity
Initially small operation which is
limited in scalability
Initial low market share
Initial innadequate distribution
Opportunities
Growing toxic-free market
Expanding demand for “green”
products
Expected flame-retardant
legislature in CA
Expected
Market Penetration
Easy to duplicate model
Threats
New entrants
Competitive market entrants
with greater infrastructure and/
or funding
Overseas competition

26. 26
RISK MITIGATION AND STRATEGIES
As a start-up with a new business model and an early entrant into a new market, there will
be both expected and unexpected risks and obstacles. We have identified assumptions
and some potential risks, and have outlined our mitigation strategy to address these. The
Team at CHARtruce has the knowledge and expertise to be flexible and reiterate in an ever-
changing business environment.
Assumptions Risks Mitigation
Consumers will want our
products
Consumers will not believe
that our products remove
toxins from their living
environment. Consumers are
not aware of the toxins in their
environment that are
affecting their health
Provide scientific data that
verifies biochar removes
toxins from the living
environments. Education
campaign bringing
awareness to the effects of
toxins by aligning with
national NGO’s.
CHARtruce has no
competition
This is an easy model to
replicate at a lower price
point if manufactured
overseas
Early entrant to market made
in the U.S. and a solid value
proposition. The demand for
U.S. made products is
growing. Listen to customer
feedback to ensure we are
providing a strong value
proposition

27. 27
The venture team has a
variety of skills and a deep
passion to eradicate toxins
from the living environment
Deficient skills or expertise in
areas of the business. The
team being overloaded with
daily operations and not
being able to manage the
business as a whole
Bring in outside consultants to
review the mission and value
statements and aid in
realigning the team to
achieve their goals. Hire
qualified personnel to assist
the team in areas of
deficiency, so that the team
can focus on the overall
business
The government will pass
legislation limiting the amount
of toxins in products.
California will pass legislation
preventing the ease of flame
retardants in products
The Chemical Safety
Improvement Act will not be
updated during this session of
congress. California does not
pass new legislation
Take action and support all
parties that are actively
involved in changing the
chemical satiety
improvement act and parties
supporting California’s
legislation banning flame
retardants
There is a market for char-
truce and we will achieve
24% annual growth
Difficulties in reaching our
target markets.
We have budgeted between
5-15% of revenues for sales,
marketing, advertising, and
brand imagining. This allows
enough cash to hire
consultants if we are not
reaching our target sales.

28. 28
Stakeholders: i.e. NGO’s,
naturopath and allergists will
endorse our products
NGO’s, naturopath and
allergists will not partner with
char-truce
Spend a vast amount of
quality time with the NGO’s,
naturopath and allergists
regarding education and
benefits of char-truce
Our initial investment is
enough to carry us through
the first few years
Insufficient start up investment
to run the business. Having to
secure additional funding
There are a few ways that we
can decrease initial output of
capital expenditures. We can
rent the sewing machines or
buy used equipment until our
revenues increase to a point
that we are in a positive cash
flow situation, then reassess
hiring new employees
We will be able to produce
the required bio-char needed
for the production of our
products.
Unable to produce enough
bio-char to cover our
products
There is a risk analysis in our
Excel data representing this
assumption of purchasing bio-
char wholesale. It shows us still
able to make a profit. We
also need to research other
wood mills on Bainbridge
island that can supply us with
additional waste to produce
the required bio-char.

29. 29
Below, represents worse-case scenario if we are unable to produce all of our required bio-
char for production. Please note that we are not including our fourth revenue stream of
selling wholesale bulk bio-char as this assumes we are not producing enough bio-char.
Below is a sales projection analysis which plans for varied levels of market demand and
allows for a broader scope of possibility. There is a marked decrease in cash flows for Year 3.
This occurs as a result of hiring additional employees based upon our assumption of a 24%
annual sales increase. If we are not achieving sales projections by Year 3, we will reassess
the hiring plan in order to mitigate negative cash flow.
-$100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
1 2 3 4 5 6 7 8 9 10
Year
Purchasing Biochar
Cash Flow purchasing 25% of
biochar
Cash Flow purchasing 50% of
biochar
Cash Flow w/purchasing 100%
biochar
Cash Flow w/producing all
biochar

30. 30
IMPLEMENTATION ROADMAP
At startup, our team decided to go forward with redesigning biochar as an indoor air purifier.
Each partner has contributed $40,000 as startup capital. For the first three months of
operation we will be working out of each respective partner’s home while creating
distribution channels and confirming that there is sufficient demand for our product. During
this period, the team will be buying biochar at wholesale for our prototypes. We will be
manufacturing the shells at home with the expected production of 1000 items a month.
These prototypes will be used as samples and giveaways at trade shows and various brick
and mortar businesses on Bainbridge Island and the Seattle area. Each of the four founders
agrees to contribute the sweat equity necessary to make this effort possible.
CHARtruce formed a partnership with Jams Hawaii, an Oahu-based clothing manufacturer
which gave us over 1,000 yards of free material for our first year of operation. Jams had
discontinued the material earlier this year and was looking to find an alternative means of
disposal. We recognize that this fabric does not meet our sustainable metrics of 100% organic
-$200,000
$0
$200,000
$400,000
$600,000
$800,000
1 2 3 4 5 6 7 8 9 10
Year
Sales Projections
Original Projections
Decrease in Sales by 5%
Decrease in Sales by 10%
Decrease in Sales by 15%
Decrease in Sales by 20%

31. 31
U.S. made cotton, however we are utilizing this material as an up cycle. This allows Jams to
make progress toward their efforts to reduce fabric waste.
CHARtruce has established a partnership with Coyote Woodshop on Bainbridge Island,
Washington. CHARtruce will be purchasing a gasification machine, which will turn the wood
waste produced from the mill into biochar while we will be supplying electricity to Coyote’s
new commercial facility. Our contract will stipulate that CHARtruce will purchase the
gasification machine for the price of land and building use. In addition to the cost of the
machine, CHARtruce will be responsible for all costs associated with maintenance of the
machine.
For more timeline details, please refer to the Sales tab of our financials.
CONCLUSION
Throughout the process of creating our business model, we interviewed many individuals
and experts relative to the biochar industry. We found that biochar has the ability to foster
plant growth, balance moisture, absorb odors and lower greenhouse gasses as well as
sequester toxins found in the ambient environment. In addition to having triple bottom line
potential plus purpose (aka quadruple bottom line), CHARtruce is a business plan that can
be realistically brought to life. As a business, CHARtruce launches an important innovation
of our time where instead of fear and despair we offer hope; instead of increasing
exposure to toxins we see a transformation; instead of waste we see raw materials, instead
of toxins we see healthy homes; instead of the bottom line we see the quadruple bottom
line.
We have truly enjoyed learning about this process. Researching a material that has been
used for centuries, adding creativity and design, and then building an appropriate financial
model have all been combined in an effort to reduce the toxic environments we live in.

32. 32
According to Global Environmental Outlook, indoor air pollution kills 1.6 people every year. 22
No single person is exempt from the harmful effects of toxic chemical exposure. Our primary
purpose has been to decrease the negative impact toxins have on our bodies and
environment. In creating CHARtruce, we are reducing toxins one room at a time.
22
http://www.who.int/heli/risks/indoorair/indoorair/en/