Conclusion katrina Warren marketing & communications ghazaleh heydari operations & logistics david lam tech expert lynnfield mitchell ceo product & brand britta wickham ecommerce & finance 1 growth of ecommerce condo-dwelling is on the rise in North America trend towards micro-apartments a new category in furniture emerges Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces why now? 2 limited options for small space furniture getting purchases into home is a challenge (doorways, hallways, elevators) delivery is a hassle need for space optimizing furniture condos offer limited space, storage, & lighting Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces problem identification: 3 smallhaus our solution: modular, multi- functional furniture furniture fit for small spaces an easy, user- friendly experience from site to set up 4 products: high quality modular maximize space (items for < 800 sq ft) focus on items that can be flat packed explore customizable options in future to involve customer categories: dining room, living room, bedroom, patio 5 Suppliers: smallhaus provides international suppliers with access to North American market suppliers will not be undercut to create positive relations committed to CSR: source product from environmentally conscious & ethically responsible supplier align with smallhaus vision A2 / & Tradition / DeskStore / Casala / Dk3 / Ekdahls / Infiniti / Munto / Treku 6 market opportunity: 1.66 million 36% $522/year $313 million 7 number of homes 750 ft 2 or smaller (US cities) 1 percentage of homes with residents age (US cities) 1 average amount spent on furniture per household 2 1 American Housing Survey Consumer Expenditure Survey 2012 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces our target customer: young professionals and dual-income-no-kids between 25 and 44 living in a small apartment or condo 8 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces a day in the life: how will we attract customers: engaging website build a brand experience one-way communication two-way communication 1010 how will we attract customers: engaging website build a brand experience one-way communication two-way communication 11 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces marketing spend by channel 12 differentiation: smallhaus ikea resource furniture crate & barrel bryght amazon wayfair small space focus only modular furniture convertible furniture high quality pop-up showrooms na easy assembly advanced visualization features owner and renter friendly small space furniture ONLY high quality modular & convertible furniture pop-up showrooms advanced visualization features 13 using sayduck to develop the smallhaus augmented reality apps. the apps will be free for users 3d visualization: 14 business model: hybrid of 2 successful models: a. providing North American access to international suppliers b. cutting out middle men & operating with very lean inventory innovative data management 15 operations: warehouses/shipping 2015: Vancouver 2016: San Francisco 2017: Toronto & NYC warehoused product : ships in 1-2 wks direct from supplier : ships in 3-4 wks flat rate shipping no hassle returns 16 operations: HR 1717 financial projections: ~ 5% market penetration by financial projections: operating expenses 19 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces financial projections: funding milestones 3 Staff Warehouses Seed Funding$ 500k Series A$2.5M Pop Up Locations Geos Targeted thank-you 2121 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces appendices: 2 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces financial projections: headcount and payroll growth transaction completed Incentivized to shop again 24 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces financial projections: sales per channel 25 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces financial projections: sales ($) per category 26 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces financial projections: sales (units) per category 27 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces financial projections: monthly cash flow (2015/2016) Seed Funding$ 500k Series A $2.2M 28 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces financial projections: revenue & expenses growth *expenses inclusive of operating and salary costs 30 website: transaction completed Incentivized to shop again 37 targeted marketing plan: transaction completed Incentivized to shop again 39 packaging: transaction completed Incentivized to shop again 41 Conclusion there are limited options for purchasing furniture fit for small spaces Conclusion there are limited options for purchasing furniture fit for small spaces process map: customer shop smallhaus smallhaus showroom completes purchase & makes payment order is sent designer completes made-to- order product shipped to customer warehouse receives order customer receives finished product satisfied with finished product transaction completed not satisfied with finished product return issued product shipped to warehouse selects product (may use 3d visualization) designer local delivery local delivery Incentivized to shop again Incentivized to shop again product is advertised online for resale customized not customized 28