AFTER LUNCH SERVICE STUFF

JS: The point of doing the service stuff is the essence of what an eyeball play does - attract people

JS: You can raise money at a higher valuation with the same valuation. If you were trying to run this as an inventory business (LL Bean) that will be much less highly valued than one that has a more net-ish, infomediary, eyeball aggregator - we don't want to be Wen Van, we want to be CNET.

LC: We have two hour to some up with an understanding of what our business is. With us is Jonathan Weber who is Editor-in-Chief of The Industry Standard, Jonathan Steuer senior Strategist for Scient. Andrew Pickholz - General Counsel or Green Home, worked for Cisco, Fenwick and West and Lawrence's cousin.

LC: What we decided this morning is that we are not an inventory play, we are an eyeball play. We are trying to be a solution provider for a green lifestyle.

MARKET SIZE
Unless we can specifically know our market size is, we cannot know how much money we can make and no investor is going to be interested. To do this we have to be able to define green. We also need to look at every possible product category and decide if there is a green product or green product potential.

We have begun to do this with census data, C of C data that total tells us that it is anywhere between 2.5 - 3.1 billion dollars.

JG: There are green possibilities in every possible category.

SS: With the exception of rent...

LC: The way we sized the green products market was to look at actual industry and determine the size and whether or not a green product has shown up in there. I have spoke to the top five experts of sizing the green market and no one knows. We need to figure out the problem ourselves. I can show that the migration of purchasing habits

AP: How do you reach your customers if you are all over the map. (lots of controversy of how big the market is and what numbers you use to determine it and how important it is to make that determination).

AP: You need to be able to shoe what size market can you get to with a $10 million marketing budget, a $25 million budget and a

JS: You will have to be able to show how big the market is and how we are going to get to that market.

SS: Lawrence has gone MUCH farther than anyone else in determining the market size. There is not even a City (besides Santa Monica) or a Green Business Association - only associations within each product or service category. Whatever LC's numbers are, no one can contest it.

AP: No one says that they are going to capture a trillion dallar market

JS: You have to pass the bullshit test

LC: To re-cast what Green Home is - we are an lifestyle play - we provide solutions for people who want a green gardener, heating duct cleaner, maid, carpet cleaner, etc. and we send them to the local green version of these service providers get a margin on all of them.

The current market sizing says that there is a $500 billion market and we can get 1% of it. (debate about providing services)

MM: We can get all the market size we need to get by leaving out the service points

LC: Well, in the same way we decided to deal with our distributor model that we originally came up with we are saying that we will do the same thing with the original market sizing we came up with.

AP: We should not get side-tracked on whether or not we include cars and personal services.

JW: You do not need the marginal stuff.

JG: The TAM is $400 billion with supplies, apparel and services (excluding personal services and cars) but to use these numbers to size our market is a total guestimation. With this business model, what can I expect to capture?

JW: It is implausible to argue that ALL of that potential market is going to be green.

JG: But that is an important problem to consider.

LC: Conservative estimates put the green market size at 2.5 billion market (industry analysts, Jackie Ottman, Harvy Hartman, Susie Shannon, We have established growth at 35% per year (John says it is too high)

LC: I think I can support that it will grow at 10% - 20% per year year. Then I go in to say what the 2.5 million represent.

AP: - leads discussion of what the potential growth per year is. JG says that it is 15%

JG: You are not going to get to the right answer about how big the market is.

SS: You have better information than anyone else and you are being conservative

AP: You (LC) has drilled-down more, more deeply and more accurately than anyone else.

JG: We have to distinguish ourselves because every other business like this has failed - there used to be 200 million green retailers now there are only 10. The reason these stores failed may have been that people went to the hardwar store

JW: This is a fairly easy distinction to make.

SUMMARY - $400 billion TAM, we get 1%.

THE PITCH
Green Solution Provider?
First National Brand to be The Trusted Source for Environmentally Goods and Services
Ons Stop Shop

JS: Unless people understand that they have green problems, we don't want to say that we

JW: Put in NUMBER of exclusive agreements
LC: Endorsements but no big name board members.
JW/MM/JS: World class sounds lame - no one will say who they are.
MM: A Doctor and an NGO big shot.
LC: Where we are now - Content deals (LMH, Natural Home, etc.), Marketing (Cheskin), Pro Formas (how we'll spend the money), Web Site,
AP: "1500 square feet of office space in San Francisco" and that we have a staff.
JS: How do you address the burn rate?
AP: IF you have a staff then you probably have enough viability that someone will ultimately fund you.
JS: Say five full-time staff and say the 1500 square feet
LC: Now for the play - The first national brand... The point is that the solution is the products. JS: Then you are not an eyeball play
ALL: you have to add "and content (or information)" to "The first national brand..." sentence.
JS: We have to talk about the fact that as soon as we start rating products it is hard to sell products (for a One stop shop for environmentally friendly goods, services, and information
JW: #1 opportunity, #2 play, #3 where are we now (or not)
LC: 1. Play

The first slide is "The first national brand to be the trusted source for environmentally friendly goods and information" Environmentally preferable alternatives exist for most household products and services Americans use daily.

2. Green =$$$
TAM = $400 billion
Currently $5 - 25 billion
Green General Merchandise is growing at 15% per year
$50 billion US consumer retail green in 3 years.
Horizon
3. Consumers Demand Green Products
4. Problem - if demand is high, why is penetration low
JW: Format this better Availability, Trust, Quality, Price, Awareness all big and on their own line.
5. slide number 5 - Green Home Satisfies Unmet Consumer Demand
Awareness -
This slide will say something to the effect that "We won't sell it if it does not work, no matter how green it is."
6. Internet made to sell green products
6.5 CONTENT - content is key - educated people respond to education

JS: Now that we have done opportunity, problem, solution, where we are no THEN we need to talk about what we are going to do - Why we are going to win.

Next - should it be how we are going to market OR should we talk about our competitive advantages.

10. Competitive Landscape
11. Competitive Advantages
12. Why We Are Different
13. Market Segmentation (says "pie me") (we've done our research about the market and we have segmented the market)
14. Marketing Plan (the most important slide) (This is how we approach it - we are a market maker) - Take out the second line about Sears, Home Depot, etc. JS says we could keep it in as long as we are an information play.
15. Market Trends
16. Changing the landscape
17. Future Development