SlideShare a Scribd company logo
1 of 4
Not your grandfather’s firewood.
Changing lifestyles and environmental regulations mean consumers’ firewood needs have changed.
Firewood USA uses unique processing technology to produce quality boxed firewood meeting the
demands of today’s consumers, including convenience, ease of use and good value. This is an opportunity
to invest in a company with the technology needed to differentiate its product in what has been a
commodity market. This competitive advantage will allow Firewood USA to produce quality boxed
firewood and develop a brand recognized and sought by consumers willing to pay a premium price.
The Numbers
Consumer Needs Fulfilled
Home fireplace market:
• Available in retail stores
• Easy open carton with carrying handle
• No bugs - safe to store indoors
• Lights easily and burns cleanly
• Creates beautiful, crackling fire with
pleasing aroma
• Good value even at premium price
• Carton can be burned or recycled
• Environmentally friendly, renewable
energy source
Camping market:
• Available at campgrounds
• No transport restrictions within the
continental U.S.
• Enough for one to two nights camping
• Easy open carton with carrying handle
• Lights easily
• Burns clean and beautifully
• Carton can be burned or recycled
• More fun and a better camping
experience than sitting around the
Coleman stove
• Environmentally friendly, renewable
energy source
Why invest in Firewood USA?
Reinventing a traditional business to gain
competitive advantage
Firewood USA’s unique production technology allows
lower costs, plus the ability to distribute throughout
continental U.S. without Department of Agriculture
restrictions. It also offers the ability to brand the
product and command premium prices.
Ability to quickly be market leader
The company has first mover advantage in the
premium firewood market as well as scalable
production and distribution capabilities.
Fragmented competition
There are no major producers or brand names in the
firewood business. Traditional suppliers of small
firewood bundles distribute product of uneven quality
in inconvenient and environmentally unfriendly
packaging.
Efficient use of assets
The home fireplace and camping markets have
complementary demand periods permitting year
round production at relatively constant levels.
Helping the Ashland area economy
The company will create jobs and help strengthen the
economy of Ashland, WI and vicinity.
Potential Market
Market Demand cf/year Market Share Sales cf/year Sales $/year
Ashland ADI 26,642 20.0% 5,331 $ 17,166
Wisconsin 5,063,998 15.0% 759,600 2.445,912
Midwest 55,078,607 2.2% 1.211,729 3.901,767
U.S. 216,093,431 1.0% 2,213,009 7,125,889
Total 276,262,678 1.5% 4,189,669 $ 13,490,734
Note: cf = cubic feet
Pro Forma Financial Highlights
Income Statement
Year 1 Year 2 Year 3
Revenue $1,419,435 $3,748,943 $5,845,800
Cost of Sales 1,056,398 2,508,538 3,858,350
Gross Profit 363,037 1,240,405 1,995,450
Expenses 261,782 622,035 721,827
Net Profit $ 101,255 $618,370 $1,273,623
Balance Sheet
Year 1 Year 2 Year 3
Assets $2,657,421 $2,988,977 $3,684,229
Liabilities 886,165 815,782 683,178
Equity 1,771,255 2,173,196 3,001,051
Potential Return on $25,000 Investment (2,500 shares)
Year 1 Year 2 Year 3
Investment Amount ($25,000) $0 $0
Cash Distribution1
0 736 4,497
Value of Investment2
7,364 44,972 92,627
ROI3
29% 153% 209%
1
Estimated at 40% of previous year’s earnings, beginning in year 2.
2
Estimated at 4 times earnings. Note that there is a 36-month non-redemption clause on stock.
3
Cash distribution plus change in value of investment from previous year, divided by $25,000 investment
“Firewood USA aims to take a commodity product and
transform it into a name brand with real, sustainable
competitive advantages. That transformation – along
with Gary Larson’s innovations repurposing proven
technology to create a highly efficient process – is
what makes the potential of this company so great.”
Rick Moran
Marketing Consultant
“I prepared the pro forma financial information for
Firewood USA based on information provided to me by
Gary J Larson, President. The information provided
appears sound and conservative. The Company will give
Northwestern Wisconsin industry much needed job
creation and support the local logging industry.”
Al Susedik, CPA
Financial Consultant
“A well thought out business using modern technology to
produce a product that is environmentally friendly,
pest free and able to legally be transported to and
used in any campground in the country. Firewood USA is
an excellent idea ready for implementation with an
attractive return on investment.”
Cliff Grand
Experienced Ashland Area
Business Owner
“Firewood USA is a Win-Win-Win! It makes perfect sense.
Make use of abundant firewood resources, make them safe
using sustainable green processes, provide the product
at a great price, and respect our environment in the
process! I am excited by the innovative green natural
resource benefits, and the people behind this company.
You can't go wrong with this winning combination..”
Greg Scholz
Information Technology
Consultant
The Business Model
Management
Gary J. Larson is the president and founder of the company.
He has a wide range of experience spanning a combined
44 years in manufacturing, marketing, distribution and
business management. The majority of those years were
spent in the design, operation and sales of high production
hydraulic industrial machinery – experience crucial to the
successful implementation of a cost efficient, highly
automated firewood processing facility. His experience
includes three previous startup firms.
Gary is a life long resident of the Ashland area interested in
both building a successful, profitable business and bringing
new jobs to the area to help grow Ashland’s economy. He is
dedicated to introducing green technology and business
practices as a part of the Firewood USA’s goal of delivering
the highest quality natural boxed firewood on the market.
The company philosophy is to do better for shareholders by
doing good for the environment and community.
Funding Sought
Firewood USA is seeking $825,000 in equity financing with a minimum investment of $25,000 per
investor. New investors will receive one share for every $10 invested. Note that there is a 36-month
non-redemption clause on stock.
2310 Island Lake Road, Barnes, WI 54873 Cell 218 348-2120
Green Business Practices
• USDA certified bug free firewood
• Firewood is renewable resource
• Packaging is recycled cardboard with
environmentally friendly soy ink
• No plastic or metal waste in package
• Waste pulpwood recycled to fuel kilns
• No packaging or production waste sent to
land fills
• Energy efficient trailer load shipping to
wholesalers
• Other shipments by common carrier for
lower carbon footprint

More Related Content

Similar to Barnes - Not your grandfather

Ethics, expectations and profits: Managing in complex environments
Ethics, expectations and profits: Managing in complex environments Ethics, expectations and profits: Managing in complex environments
Ethics, expectations and profits: Managing in complex environments Wayne Dunn
 
Lynn Walsh Chronological Resume
Lynn Walsh Chronological ResumeLynn Walsh Chronological Resume
Lynn Walsh Chronological ResumeLynn Walsh
 
ETHICAL AND SUSTAINABLE SOURCING
ETHICAL AND SUSTAINABLE SOURCINGETHICAL AND SUSTAINABLE SOURCING
ETHICAL AND SUSTAINABLE SOURCINGFaHaD .H. NooR
 
Inspiring Sustainability through Meetings & Events
Inspiring Sustainability through Meetings & EventsInspiring Sustainability through Meetings & Events
Inspiring Sustainability through Meetings & EventsMrooksby
 
Marketing project proposal
Marketing project proposalMarketing project proposal
Marketing project proposaldunghuynh2074696
 
Grow Trees Pitch Book Corporates3
Grow Trees  Pitch  Book    Corporates3Grow Trees  Pitch  Book    Corporates3
Grow Trees Pitch Book Corporates3Janak Shah
 
Kumho Master Deck
Kumho Master DeckKumho Master Deck
Kumho Master Deckjamiekna
 
The Value of Real Partnerships
The Value of Real PartnershipsThe Value of Real Partnerships
The Value of Real PartnershipsSummerhill
 
Eco Room Final P Pt
Eco Room Final P PtEco Room Final P Pt
Eco Room Final P Ptpeterjtbates
 
10 Home Performance Marketing Tactics Worth Stealing
10 Home Performance Marketing Tactics Worth Stealing10 Home Performance Marketing Tactics Worth Stealing
10 Home Performance Marketing Tactics Worth Stealingedmthomas
 
Pride chemicals presentation pcp
Pride chemicals presentation pcpPride chemicals presentation pcp
Pride chemicals presentation pcpMiguel_Euceda
 
Marketing_Zone_finalproof (2)
Marketing_Zone_finalproof (2)Marketing_Zone_finalproof (2)
Marketing_Zone_finalproof (2)Charlotte King
 
Building a Greener Brand
Building a Greener BrandBuilding a Greener Brand
Building a Greener Brand3Degrees
 

Similar to Barnes - Not your grandfather (20)

Ethics, expectations and profits: Managing in complex environments
Ethics, expectations and profits: Managing in complex environments Ethics, expectations and profits: Managing in complex environments
Ethics, expectations and profits: Managing in complex environments
 
Lynn Walsh Chronological Resume
Lynn Walsh Chronological ResumeLynn Walsh Chronological Resume
Lynn Walsh Chronological Resume
 
ETHICAL AND SUSTAINABLE SOURCING
ETHICAL AND SUSTAINABLE SOURCINGETHICAL AND SUSTAINABLE SOURCING
ETHICAL AND SUSTAINABLE SOURCING
 
Inspiring Sustainability through Meetings & Events
Inspiring Sustainability through Meetings & EventsInspiring Sustainability through Meetings & Events
Inspiring Sustainability through Meetings & Events
 
Marketing project proposal
Marketing project proposalMarketing project proposal
Marketing project proposal
 
Grow Trees Pitch Book Corporates3
Grow Trees  Pitch  Book    Corporates3Grow Trees  Pitch  Book    Corporates3
Grow Trees Pitch Book Corporates3
 
Kumho Master Deck
Kumho Master DeckKumho Master Deck
Kumho Master Deck
 
The Value of Real Partnerships
The Value of Real PartnershipsThe Value of Real Partnerships
The Value of Real Partnerships
 
Big Ox Energy
Big Ox EnergyBig Ox Energy
Big Ox Energy
 
American woodmark
American woodmarkAmerican woodmark
American woodmark
 
Eco Room Final P Pt
Eco Room Final P PtEco Room Final P Pt
Eco Room Final P Pt
 
10 Home Performance Marketing Tactics Worth Stealing
10 Home Performance Marketing Tactics Worth Stealing10 Home Performance Marketing Tactics Worth Stealing
10 Home Performance Marketing Tactics Worth Stealing
 
Business Plan
Business Plan Business Plan
Business Plan
 
Impact Carolina Opportunity Fund
Impact Carolina Opportunity FundImpact Carolina Opportunity Fund
Impact Carolina Opportunity Fund
 
Pride chemicals presentation pcp
Pride chemicals presentation pcpPride chemicals presentation pcp
Pride chemicals presentation pcp
 
greennclean.ca
greennclean.cagreennclean.ca
greennclean.ca
 
Green andcleandirect
Green andcleandirectGreen andcleandirect
Green andcleandirect
 
Marketing_Zone_finalproof (2)
Marketing_Zone_finalproof (2)Marketing_Zone_finalproof (2)
Marketing_Zone_finalproof (2)
 
Building a Greener Brand
Building a Greener BrandBuilding a Greener Brand
Building a Greener Brand
 
Presentation1 (1)
Presentation1 (1)Presentation1 (1)
Presentation1 (1)
 

Barnes - Not your grandfather

  • 1. Not your grandfather’s firewood. Changing lifestyles and environmental regulations mean consumers’ firewood needs have changed. Firewood USA uses unique processing technology to produce quality boxed firewood meeting the demands of today’s consumers, including convenience, ease of use and good value. This is an opportunity to invest in a company with the technology needed to differentiate its product in what has been a commodity market. This competitive advantage will allow Firewood USA to produce quality boxed firewood and develop a brand recognized and sought by consumers willing to pay a premium price. The Numbers Consumer Needs Fulfilled Home fireplace market: • Available in retail stores • Easy open carton with carrying handle • No bugs - safe to store indoors • Lights easily and burns cleanly • Creates beautiful, crackling fire with pleasing aroma • Good value even at premium price • Carton can be burned or recycled • Environmentally friendly, renewable energy source Camping market: • Available at campgrounds • No transport restrictions within the continental U.S. • Enough for one to two nights camping • Easy open carton with carrying handle • Lights easily • Burns clean and beautifully • Carton can be burned or recycled • More fun and a better camping experience than sitting around the Coleman stove • Environmentally friendly, renewable energy source Why invest in Firewood USA? Reinventing a traditional business to gain competitive advantage Firewood USA’s unique production technology allows lower costs, plus the ability to distribute throughout continental U.S. without Department of Agriculture restrictions. It also offers the ability to brand the product and command premium prices. Ability to quickly be market leader The company has first mover advantage in the premium firewood market as well as scalable production and distribution capabilities. Fragmented competition There are no major producers or brand names in the firewood business. Traditional suppliers of small firewood bundles distribute product of uneven quality in inconvenient and environmentally unfriendly packaging. Efficient use of assets The home fireplace and camping markets have complementary demand periods permitting year round production at relatively constant levels. Helping the Ashland area economy The company will create jobs and help strengthen the economy of Ashland, WI and vicinity.
  • 2. Potential Market Market Demand cf/year Market Share Sales cf/year Sales $/year Ashland ADI 26,642 20.0% 5,331 $ 17,166 Wisconsin 5,063,998 15.0% 759,600 2.445,912 Midwest 55,078,607 2.2% 1.211,729 3.901,767 U.S. 216,093,431 1.0% 2,213,009 7,125,889 Total 276,262,678 1.5% 4,189,669 $ 13,490,734 Note: cf = cubic feet Pro Forma Financial Highlights Income Statement Year 1 Year 2 Year 3 Revenue $1,419,435 $3,748,943 $5,845,800 Cost of Sales 1,056,398 2,508,538 3,858,350 Gross Profit 363,037 1,240,405 1,995,450 Expenses 261,782 622,035 721,827 Net Profit $ 101,255 $618,370 $1,273,623 Balance Sheet Year 1 Year 2 Year 3 Assets $2,657,421 $2,988,977 $3,684,229 Liabilities 886,165 815,782 683,178 Equity 1,771,255 2,173,196 3,001,051 Potential Return on $25,000 Investment (2,500 shares) Year 1 Year 2 Year 3 Investment Amount ($25,000) $0 $0 Cash Distribution1 0 736 4,497 Value of Investment2 7,364 44,972 92,627 ROI3 29% 153% 209% 1 Estimated at 40% of previous year’s earnings, beginning in year 2. 2 Estimated at 4 times earnings. Note that there is a 36-month non-redemption clause on stock. 3 Cash distribution plus change in value of investment from previous year, divided by $25,000 investment
  • 3. “Firewood USA aims to take a commodity product and transform it into a name brand with real, sustainable competitive advantages. That transformation – along with Gary Larson’s innovations repurposing proven technology to create a highly efficient process – is what makes the potential of this company so great.” Rick Moran Marketing Consultant “I prepared the pro forma financial information for Firewood USA based on information provided to me by Gary J Larson, President. The information provided appears sound and conservative. The Company will give Northwestern Wisconsin industry much needed job creation and support the local logging industry.” Al Susedik, CPA Financial Consultant “A well thought out business using modern technology to produce a product that is environmentally friendly, pest free and able to legally be transported to and used in any campground in the country. Firewood USA is an excellent idea ready for implementation with an attractive return on investment.” Cliff Grand Experienced Ashland Area Business Owner “Firewood USA is a Win-Win-Win! It makes perfect sense. Make use of abundant firewood resources, make them safe using sustainable green processes, provide the product at a great price, and respect our environment in the process! I am excited by the innovative green natural resource benefits, and the people behind this company. You can't go wrong with this winning combination..” Greg Scholz Information Technology Consultant
  • 4. The Business Model Management Gary J. Larson is the president and founder of the company. He has a wide range of experience spanning a combined 44 years in manufacturing, marketing, distribution and business management. The majority of those years were spent in the design, operation and sales of high production hydraulic industrial machinery – experience crucial to the successful implementation of a cost efficient, highly automated firewood processing facility. His experience includes three previous startup firms. Gary is a life long resident of the Ashland area interested in both building a successful, profitable business and bringing new jobs to the area to help grow Ashland’s economy. He is dedicated to introducing green technology and business practices as a part of the Firewood USA’s goal of delivering the highest quality natural boxed firewood on the market. The company philosophy is to do better for shareholders by doing good for the environment and community. Funding Sought Firewood USA is seeking $825,000 in equity financing with a minimum investment of $25,000 per investor. New investors will receive one share for every $10 invested. Note that there is a 36-month non-redemption clause on stock. 2310 Island Lake Road, Barnes, WI 54873 Cell 218 348-2120 Green Business Practices • USDA certified bug free firewood • Firewood is renewable resource • Packaging is recycled cardboard with environmentally friendly soy ink • No plastic or metal waste in package • Waste pulpwood recycled to fuel kilns • No packaging or production waste sent to land fills • Energy efficient trailer load shipping to wholesalers • Other shipments by common carrier for lower carbon footprint