Executive Summaries

Company Profile Contact Information: HomeGrow, Inc. 3936 Home Ave, Chicago, IL 60606 [email protected] ​1+​ ​773-867-5309 ​www.HomeGrow.com Financial Information: Funding Stage: ​Customer testing and product development Previous Capital: $​75,000 Monthly Burn Rate: ​$4000 Capital Seeking: ​$500,000 Use of Funds: 30% Market Research 30% Product Development and testing 20% Operations 20% Legal/other Management: Judy Robledo CEO 30+ years in the financial service industry, experienced plant grower and passionate about growing food. Co-founder of Hydroponics for beginners Facebook page with 55K+ followers. Rita Sturm, CFO 10+ years in the financial service industry, experienced plant grower and passionate about growing food. Co-founder of Hydroponics for beginners Facebook page with 55K+ followers. Advisor: ​Terri Lonier Lawyer: ​Dewey and Howe Accountant:​ EG Accounting Investors: ​Friends Family

HomeGrow Executive Summary

Grow with HomeGrow, because we look forward to growing with you!

HomeGrow hydroponic systems make growing herbs fun and easy. HomeGrow is an affordable, customizable, and aesthetically pleasing hydroponic solution that simplifies the home growing process and grows exactly the amount of nutritious herbs for your needs year-round. HomeGrow is a soil-free way to grow herbs using nutrient enriched water and allows growers to bypass the mess, bugs and difficulty of traditional dirt growing methods.

Customer Problem:​ ​HomeGrow has listened to potential customers’ concerns and can group them into 3 main problems: 1) food waste, 2) year round access, and 3) the high cost of fresh herbs. Food spoilage is a big problem. It is frustrating and a waste of money. Many customers think twice before putting herbs in their shopping cart, while others either avoid buying fresh herbs or opt for using what they acknowledge to be the less desirable and less tasty alternative - dry herbs. The target customer for HomeGrow is seeking easy access year-round to fresh herbs from the comfort of their home. They want a system that is easy to use and install, with minimal maintenance, and without taking up too much space. They would also appreciate it if the system complemented their home decor. The customer is also interested in sustainability and appreciates green products.

Product/Solution: The HomeGrow hydroponic system guarantees the enjoyment of fresh herbs all year round. You only have to harvest what you want to eat, which means no waste. HomeGrow also benefits the environment because it is made of recycled plastic and the more food that is grown locally results in less carbon emissions. HomeGrow ​is cleaner than planting in dirt and is low maintenance. HomeGrow is the solution for people who care about sustainability and a fashionable decor with customizable colors, sizes and fit. At HomeGrow we have a team that is strong in determination, hard work, collaboration, curiosity and satisfying our customers.

Business Model: ​HomeGrow reaches its market through direct sales and subscriptions via an omni-channel platform. Revenue sources would come from full kits that include seeds,recipes, and instructions. We also offer upsells suchs as herb removal tools, additional modules, and nutrients. We also offer a subscription service to seed kits, nutrients and chemicals required to balance water.

Market: ​Hydroponics is an $8.1 billion market (12% CAGR). HomeGrow’s customers can be found beyond the core market in the $800 billion Home Improvement Market. According to the National Gardening Association (NGA), one in three U.S. households participates in some type of food gardening activity and has a total spending budget that surpasses $3.5 billion.

Competitors: ​Our competitors include AeroGro Harvest Elite, Veritable Smart Indoor Garden, and Click and Grow Smart Garden 9. All have been successful. In Q1 2020 AeroGrow had a net revenue of $39,214,000 and they formed a partnership with Scotts Miracle-Gro in 2016. A partnership or purchase like this is a potential exit for HomeGrow. Solutions offered by HomeGrow and our competitors include: Indicator lights and sensors, LED Grow lights, Seeds & Nutrients, and some offer a Color selection.

Competitive Advantage: ​HomeGrow differentiates itself by offering a wall or window-mounted system that saves space. Expandable modules can be connected to increase the growth area. The system also includes a recipe booklet that contains fun and creative recipes using herbs grown from each seed kit as well as educational resources to support the user with operation. HomeGrow is the only system made from 100% recycled plastic and can be customized in a variety of colors, including a reclaimed wood exterior, for seamless incorporation into your home decor.

Execution Plan/Go to Market Strategy: ​We will run targeted ads on social media, the web, and distribution channels with key partners (nurseries, local garden stores), participate in farmers markets, festivals, conferences, and by creating a community on social media in which our customers can share stories, make new friends, view live harvests, ask questions, and feel part of something greater than growing at home alone! FaceBook is a good place to start since we have already created a group for beginner hydroponic growers consisting of 55K+ members!

Traction: ​HomeGrow has learned who the potential customer segment is by reviewing the demographics of 1000+ interviewees. We discovered that this system is designed for the beginning gardener or health-conscious cook. The steps in this first milestone are the following:

1. Continue to interview potential customers and develop relationships with key partners 2. Create a minimum viable product (MVP) based on the needs of the potential customers 3. Begin product testing 4. Pitch MVP to potential customers and key partners for feedback and buy-in 5. Revise MVP (if needed) and complete market testing 6. Pivot or Proceed decision 7. Execute the marketing plan to gain early adopters

​6-Year Projections

Financials (00s) 2020 2021 2022 2023 2024 2025

Revenues 0 0 7,896 59,960 455,323 1,690,583

Expenditures 30,100 35,100 31,695 74,698 183,566 248,329

Net Income -30,153 -35,107 -24,557 -20,496 170,428 1,166,599

Net Profit Margin 0 0 -311% -34% 37% 69%