ASubmissiontothe2010ClimateLeadershipChallengeClausMoberg,JamiMortonandMattLuedke

3.25.10

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TableofContents

1.ExecutiveSummary ............................................................................................................................ 3

2.BusinessDescriptionandVision ......................................................................................................... 42.1MissionStatement ................................................................................................................................................................ 42.2CompanyVision ..................................................................................................................................................................... 52.2.1OurAssets...............................................................................................................................................................................52.2.2GuidingPrinciples ..............................................................................................................................................................5

3.DefinitionoftheMarket..................................................................................................................... 63.1TargetMarket#1:Foodies................................................................................................................................................ 63.2TargetMarket#2:CorporateFoodProducers ......................................................................................................... 63.3TargetMarket#3:InstitutionalFoodServiceProviders ..................................................................................... 7

4.DescriptionofSnowShoeLLCProductsandServices ........................................................................... 74.1TheSnowShoeDatabases .................................................................................................................................................. 74.1.1TheSnowShoeFoodieDatabase ..................................................................................................................................84.1.2TheSnowShoeConsumerBehaviorDatabase .......................................................................................................9

4.2TheSnowShoeiPhoneApplication................................................................................................................................ 94.2.1Step1:GrabACart .........................................................................................................................................................104.2.2Step2:SearchTheShelves...........................................................................................................................................104.2.3Step3:CheckYourCart ................................................................................................................................................114.2.4Step4:TakeYourReceipt ............................................................................................................................................11

4.3TheSnowShoeBasecamp ................................................................................................................................................11

5.EnvironmentalManagementandResults ......................................................................................... 125.1PositiveSocialImpacts .....................................................................................................................................................125.2NegativeSocialImpacts....................................................................................................................................................125.3PositiveEnvironmentalImpacts ..................................................................................................................................125.4NegativeEnvironmentalImpacts.................................................................................................................................13

6.BudgetandFinancialFeasibility........................................................................................................ 136.1Action‐ReadySolutionAwardBudget........................................................................................................................136.2InnovativeSolutionAwardBudget .............................................................................................................................14

7.OrganizationalStructure .................................................................................................................. 157.1ChiefExecutiveOfficer‐ClausMoberg......................................................................................................................157.2ChiefFinancialOfficer‐JamiMorton .........................................................................................................................167.3ChiefOperatingOfficer‐MattLuedke........................................................................................................................17

8.MarketingandSalesStrategy ........................................................................................................... 18

9.ProjectedTimeline ........................................................................................................................... 19

Appendices .......................................................................................................................................... 21AppendixA:SnowShoeLLCprojected3‐yearincomestatement ........................................................................21AppendixB:Cashflowprojection .......................................................................................................................................25AppendixC:Projectednetandgrosssalesandcarbonemissionsimpact ........................................................27AppendixD:YouTubevideodescription..........................................................................................................................28AppendixE:Externalcontributorbios..............................................................................................................................28AppendixF:Acknowledgements..........................................................................................................................................29

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1.ExecutiveSummarySnowshoesreducethedepthofyourfootprints,andmakeiteasiertoovercomethedeep,difficult conditions thatwouldotherwisepreventyou fromgetting towhereyouwant togo. Our company, SnowShoe LLC,will reduce our customers’ ecological footprintsandincreaseoperatingefficiencyinthefoodretailandfoodservicessectors.ThemaindriverofourbusinesswillbetheSnowShoeFoodieDatabase.Thedatabasecontainsalltheinformationnecessarytocalculatethecarbonfootprintofafoodproduct(i.e.ingredientslists,locationsofmanufacture,packagingmaterials,etc.).ThisinformationwillbedistributedtoSnowShoeLLCcustomersviatheSnowShoeiPhoneApp(aswellasapplications(apps)forothersmartphoneplatformsandamobiledevice‐enabledwebsite).Havingpoint‐of‐saleaccesstosuchinformationwillenableSnowShoeAppuserstominimizethedirectclimateimpactoftheirpurchasesbychoosingfooditemswithlowcarbonfootprints.SnowShoeAppuserswillbeabletofurtherreducetheirclimateimpactbypurchasingcarbonemissionoffsetsdirectlythroughtheSnowShoesmartphoneapps.Wewillalsoincorporateafullrangeofweb2.0(blogging,twitter,facebook,etc.)mechanisms,inconcertwithatraditionalwebsite,toincreaseuserengagementinSnowShoeLLCactivities.SnowShoeLLCwillalsousethesepoint‐of‐saleuserinterfaceprogramstocollectdataaboutconsumerbehaviorandpreferences,whichwewillthenuseasthebasisforacorporatefoodmanufacture/distributionandeventservicesconsultingfirm.SnowShoeLLCwillraiserevenuethroughseveraldifferentactivities.WewillchargeasmallfeefortheiPhoneapp.WewillalsoraiserevenuebysellingadvertisingspaceontheSnowShoeuserinterfaces(ourappsandwebsite).Finally,wewillgenerateadditionalrevenuethroughconsultingactivitybasedonouruniquedataresources.Usingarelativelyconservativeapproachtocalculatingourpotentialmarketsizeandcompanygrowth,weforecastSnowShoeLLCtobecashflow‐positivewithinoneyearofcapitalization.Further,weforecastsignificantfinancialprofitswithin2­3yearsofthattime.WebelieveSnowShoeLLCisaveryuniqueopportunity.ByleveragingtheextremelygenerousandusefulresourcesoftheClimateLeadershipChallengeagainsttheskills,knowledgeandforesightoftheSnowShoeLLCteam,wehavetheabilitytomakeasignificantimpactonglobalclimatestabilitywhilesimultaneouslygrowingourbusinessintoasuccessfulentrepreneurialventure.

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2.BusinessDescriptionandVisionEveryonecaresaboutwhattheyeat. This facthasmade food one of humanity’s most universalobsessions. The human diet is an amalgam of ourindividual tastes, preferences, resources, wants, anddesires; a function not only of where we live, butwherewehavecomefromandwherewearegoing.In our society, chefs are celebrities; their cooking,must‐see T.V. We order steaks fromOmahawhilewooing our partnerswith thefinestFlemishconfections.Foodliteraturedominatesourbestsellerlists–fromtheSouthBeachDiettoTheOmnivore’sDilemma.Ifsomeonehasanideathatwillmakeourfoodbetter,wewillnotjustlisten,butwewillpayfortheprivilege.Our foodobsessionhas transformed theeconomicsof food intoamassiveglobalmarketplace. ThisisexhibitedbythemerefactthatBelgianchocolatesandGreatPlains redmeatare sold in supermarkets fromSeattle toMiami. Moreandmore,foodconsumerstheworldoverarerealizingthatthetruthof“youarewhatyoueat”extendsnot justtowaist linesandenergylevels,buttowastedisposalandenergymarkets,too. The modern “foodie” cares about more than just the quality of theiringredients. Ideal produce is both fresh and local, organics areworth the extramoney,andmanyclaimfairtradecoffeesomehowtastesbetter.Even though modern food consumers have demonstrated marked dedication tobuying food that isbothgood for thebodyandgood for theplanet, it is currentlyextremelydifficult todeterminethespecifichistoryofanyparticular food item. Aconscientiouscustomersimplycannotdeterminewheretheirbreadwasbaked,howfar their raspberries have traveled, or how much pollution was emitted in thecanning of their favorite soup. To do sowould require intricate calculations andinterminable Internet datamining. Even if a customerwerewilling to overcomethesesteepbarriers, itwouldbe impossible todosowhile in thegrocerystore–thelocationofmostpurchasedecisions.

2.1MissionStatementOurcompany,SnowShoeLLC,willgiveourcustomers the foodsustainabilityinformationtheyneed,whereandwhentheyneedit.Wewilldothehardworkofquantifyingthecarbonfootprintoffoodspeopleeateveryday.Furthermore,wewillconcentrateandevaluateinformationabouthowthosefoodsweremade.Allofthisinformationwillbedeliveredtothecustomer’ssmartphone(orotherinternetdevice)inthegrocerystoreaisle. Wewillthusenableourcustomerstochoose

“Wewillbeknownforeverbythetracksweleavebehind.”

­NativeAmericanproverbandSnowShoeLLCCorporatebyline

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foodsthatarebothhealthyandsustainable,andtheresultofouractionswillbe lower carbon emissions, lower transportation energy expenditures,healthierpeopleandhealthierecosystems.The actions of SnowShoe LLC are not motivated by charity. Rather, thecompany will derive significant revenue from three areas of its operation:sales of the smartphone application itself, sales of advertising space on theapplicationandthecompanywebsite,andthroughconsultingactivitiesbasedon our food informationdatabase andon consumerbehavior data collectedthroughthesmartphoneapplications.

2.2CompanyVisionOurcompanywillgaincompetitiveadvantagebystrategicallyleveragingouruniqueassetsviaSnowShoeLLC’sexplicitlystatedguidingprinciples.

2.2.1OurAssets• Information/Data: The success of SnowShoe LLCwill drawmost directly

fromthecompany’s informationassets. Customerswill come toSnowShoebecause they know thatwewill have the best information available aboutevery item on their grocer’s shelves. Therefore, our primary measure ofcompanysuccesswillbethesizeandscopeofourdata.

• Customer Base: SnowShoe LLC will generate financial profits from the

unique and valuable relationship we have with our customers. As theirpartner in the store,wewill give them the information they need tomakesustainable food purchase decisions. In return, our customerswill give usbothaccesstodataabouttheirpurchasesandtheopportunitytopresentourpartner’smarketingmaterialsatthepointofsale.

• Employees:Dedicated, impassionedpartnerswillbe thecatalystofgrowth

andprofitabilityforSnowShoeLLC.Ourcurrentandfutureemployeesmustbesmartenoughtoeffectivelybuildandmarketbothourdataandcustomerbasesoastomaximizebothenvironmentalandfinancialresults.

2.2.2GuidingPrinciplesWe will accomplish our mission through dedicated adherence to three guidingprinciples:

1) Data: Missing data translates directly into missing customers. All data isvaluable. There is no such thing as too much data, only poor dataorganizationandpresentation.

2) Transparency: Perfect data does not exist, but communicating our datacoverageandqualityallowsourcustomerstomakeinformeddecisionsandbuildstrust.Itisvitallyimportantthatwecommunicatebothwhatweknowandhowweplantouseit.

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3) Networking: Our satisfied customers are vital assets – the growth of ourcompanywill be rooted in their engagement. Wewill onlybeprofitable ifourcustomersseeusasauseful,informativeandfunpartnerintheirgroceryshoppingexperience.

3.DefinitionoftheMarketSnowShoe LLC is not just a smartphone application, or database, or even aconsultingfirmspecializinginsustainablefood. SnowShoeLLCisnot just thebestavailableconsumerresourcefordeterminingthecarbonimpactoffood.SnowShoeLLCrepresentsanentiremovementcenteredonsocietalandenvironmentalfoodsustainability information. Through SnowShoe LLC’s portfolio of products andservices,wewillaggressivelycourtthreemainmarketaudiences:foodies,corporatefoodproducers,andinstitutionalfoodproviders.

3.1TargetMarket#1:FoodiesThemostvisibleproductsofferedbySnowShoeLLCwillbeoursmartphoneapps.Initiallywewillfocusoureffortsonasingleplatform:Apple’siPhone.Appleisprojectedtohave60millionactiveiPhoneusersintheUnitedStatesbyJulyof20131.70%oftheseconsumerswillbeinthemainagebracketthathasexhibitedexuberantinterestindownloadingandusingiPhoneapps(i.e.personsbetweentheagesof19and54)2.IfweassumethattheSnowShoeiPhoneAppwillappealto30%oftheseusersasaresultofsocioeconomicstatusandpoliticalbeliefs,weestimatethat the total potential market for the SnowShoe App will be 12.6 millioncustomersintheUnitedStatesbythesummerof2013.SnowShoe LLC has convened a focus group consisting of members of our targetaudience(i.e. tech‐savy,environmentallyconsciouspersonsbetweentheageof19and54)toassessthecurrentaccessibilityoffoodsustainabilityandclimateimpactinformation. Wehave compiled a representative sampleof responses to ourfocusgroupquestionsinashortvideo,describedinAppendixD,andpostedtoYouTube3.

3.2TargetMarket#2:CorporateFoodProducersBycollectingandaggregatingextensive,exclusivedataonthein‐storebehaviorandpurchasinghabitsofenvironmentally‐consciousconsumers,SnowShoeLLCwillbeabletoprovideforward‐thinkingfoodproducerswithanunprecedentedmarketingresource. Further, SnowShoeLLCwill be able to sell advertisingopportunities tothese food producers. Through our iPhone app, we will present these clients’

1http://brainstormtech.blogs.fortune.cnn.com/2009/12/18/where‐in‐the‐world‐are‐apples‐78‐million‐

handsets/,accessedon3/20/102http://techcrunchies.com/age‐demographics‐of‐iphone‐users/,accessedon3/19/103http://www.youtube.com/watch?v=0rX26RWo9F0

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marketing materials to food consumers while they are shopping in the grocerystore. We will even be able to tailor the presentation of advertisements to theindividualbehaviorofeachconsumer.Corporate interest in sustainable foods is increasing, and for good reason. Grosssalesoforganicfoodproductsexceeded$13.8billiondollarsin2006alone.4Kraft®,Dole®, Campbell’s Soups®, and Tyson® are just a few of the multinationalcorporations that have entered the organic marketplace in recent years. Weanticipatethismarketwillcontinuetogrow,andthatthesecorporateentitieswill be interested both in our data and in advertising through our userproducts. This will be especially true as consumer interest shifts from organicsalonetoincludecarbonfootprintsandclimateimpacts.

3.3TargetMarket#3:InstitutionalFoodServiceProvidersFromcollegecafeteriastostatefairs,itisbecomingincreasinglyimportantforthosewho feed the masses to understand and reduce their significant ecologicalfootprints. SnowShoeLLCwillhavetheknowledgeandexperienceneededtohelpthese institutionsreducecostsandgreenhousegasemissionswhile increasing thenutritional value and perceived quality of their products. A great example of aninstitution that could make use of SnowShoe LLC consulting services is found atDukeUniversity,wherethecampusfoodservicespendsover$2milliondollarsperyear, almost 40% of their operating budget, on the procurement of food fromlocal/sustainablefarms.5Asotherinstitutionsseektoimplementsimilarprograms,SnowShoeLLCwillbetheretoprovidevaluableinformationandadviceonthesustainabilityandclimateimpactofmajorfoodproductproducers.

4.DescriptionofSnowShoeLLCProductsandServicesSnowShoeLLCproductsandservicesfallintofourmaincategories:

1­TheSnowShoeDatabases2­TheSnowShoeiPhoneApplication3­TheSnowShoeBaseCampwebpage

Thefollowingsectionswillfurtherdescribethesefourcategories.

4.1TheSnowShoeDatabasesSnowShoeLLC’s firstguidingprinciple isthatextensivedatacoverageiscriticaltothecompany’ssuccess.Providinguseful,relevantinformationtoourconsumerbasepromotesawarenessofsocialand environmentalissues,andenablesthemtomakeeffective purchasing decisions. Meanwhile, food producers need to identify the

4Knudson,W.(2008)TheOrganicFoodMarket,TheStrategicMarketingInstituteWorkingPaper,MichiganStateUniversity.EastLansing,MI.5http://www.aashe.org/resources/profiles/2009/duke‐universityaccessedon3/24/2010

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factors that drive consumer choices inordertomaximizesalesandprofits.SnowShoe LLCwill provide two platformsthat increase interaction between foodconsumersandfoodproducers:theFoodieDatabase and the Consumer BehaviorDatabase. SnowShoe LLC has alreadybegun construction of the databases, andconsiders their constant need for updatesand development to be a key goal of theorganization.

4.1.1TheSnowShoeFoodieDatabaseOur goal is for the SnowShoe FoodieDatabase to include comprehensiveinformation on every food productavailableingrocerystores,nationwide.This is a lot of information to process!Much of this information is currentlyavailabletotheconsumer,butisnotinaformat conducive to quantitativecomparison between different foodproducts,especiallywhileinthestore.Nonetheless,muchof thisdata isavailable.SnowShoedataassimilationspecialistswillsystematicallycombtheshelvesofgrocerystores, entering all published data fromfood product packages into our database.For most products, this action alone willprovideuswiththelocationofmanufactureand/or distribution, ingredient list, andpackaging material. The SnowShoe teamwill then fill in any missing informationusing Internet searches (e.g. Wikipedia,company websites), by interfacing withretail partners (e.g. getting distributor location lists from a local grocery store),and/or by contact with the food producers themselves. Finally, by cross‐referencing product ingredient lists with global databases containing informationonthelocationoffoodinputs(e.g.mapsofgrainproduction)andwithstatisticsonagriculturalgreenhousegasemissions,wewillbeabletoprovidearoughestimateof the carbon footprint attributable to food production before it reaches the final

Table1:TheSnowShoeFoodieDatabase Category Example 1 Brand Campbell’s2 Name TomatoSoup3 Category CannedGoods4 Weight 305g5 SKU 0510001667916 MSRP $1.507 Company

LocationCamden,NJ,08103‐1701

8 LocationofManufacture

39°56’20”N,75°06’27”W

9 MethodofTransport

GroundFreight

10 ReligiousCompliance

None

11 FairTrade? No12 %Organic

Ingredients0%

13 PackagingMaterial

SteelCan

15 Pre‐ManufacturerGreenhouseGasEmissionsFootprint

Notyetcalculated

14 IngredientsList Water,TomatoPaste,HighFructoseCornSyrup,WheatFlower,Water,Salt,AscorbicAcid,CitricAcid

Note:databasewillalsocontainallpublishednutritionalinformation

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publisheddistributor. Table1 listsanexampleentry forasingle foodproduct(inthis case, a12oz. canofCampbell’sTomatoSoup). Allof this information in thistablewasgleaneddirectlyfromthecanlabeland/ortheCambell’sSoupcorporatewebsite.

4.1.2TheSnowShoeConsumerBehaviorDatabaseWhenconsumersconsiderpurchasingafooditem,useouriPhoneapptocalculatethat item’s carbon footprint, but end up choosing another item, the SnowShoeConsumerBehaviorDatabasewill record that decision. This is just one of severaluniquedatatypesthatSnowShoeLLCwillbeabletomarkettofoodproducersandadvertisers.Overtime,thedatabasewillexpandbymarkingtheitemscomparedtothe items ultimately purchased for each consumer, for each region, and for theentirecountry.This service will help producers identify what customers want and need. Forexample, the producer of an item that is considered but not purchased wouldotherwise be unsure of the consumer's decision‐making process, unable todistinguishamongpurchasesbasedonprice,nutritionalcontent,carbon footprint,or any factor. But now, by noting which information types are frequentlyrequested by a consumer, and how several items compare based on thisinformation,theSnowShoeConsumerBehaviorDatabasecanhelpproducersfocusonthemostbeneficialareasofproductimprovement.It is importanttonotethatnopersonally‐identifiable informationwillbeavailableonthisdatabase. Inaccordancewithoursecondguidingprinciple ‐ transparency,consumerswillbenotifiedoftheSnowShoeLLCConsumerBehaviorDatabaseanditsuseoftheirdataintheSnowShoeiPhoneAppTermsandConditionsDocument.

4.2TheSnowShoeiPhoneApplicationEqually important to the aggregation of information is its dissemination. ForSnowShoeLLC, theprincipal formof interactionwithour informationwillbethrough the SnowShoe iPhone App. Two‐way communication facilitated by theSnowShoe iPhone App significantly addresses the second SnowShoe LLC assetcategory:theexpansionandactiveinvolvementofouruserbase.The iPhone app will use the powerful, user‐friendly iPhone interface to quicklyprovide and process data for consumers. This app will be the first step towardmakingourdatabaseaccessibleandwewilldevelopsimilarapps forothermobilemedia devices in the future. In the meantime, SnowShoe LLC’s mobile‐enabledwebsite can be accessed by any smartphone or similar device, allowing thecustomerfullaccesstoSnowShoeapplicationfunctionality.The following is a brief description of the SnowShoe iPhone App’s function andstructure:

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Whentheuser launches theapplication, theywillbegreetedby theHomeScreen,which displays the user's running average of “CO2 per $,” based on previousshopping sessions. It also displays the averages for their region (for example,“Madison, WI area”) and the nation as a whole. Any of these 3 averages can bechosentoshowtheirprogressionovertimeinalinegraph.TherestoftheSnowShoeLLCviewsaremodeledaftertheactualgroceryshoppingexperience:

4.2.1Step1:GrabACartTobeginanewshoppingsession,theusereitherchoosestheircurrentstorefromalist of “Favorite Stores,” or chooses “New Store” to activate the iPhone's CoreLocation framework (GPS) to take latitude and longitude data, finding the storeclosest to their current position. This location is used to calculate distances andcarbonfootprints.

4.2.2Step2:SearchTheShelvesMostoftheuser'stimewillbespentinthisview.Here,theusercanmakeuseoftheiPhone'scameraimagingtechnologytoscanfooditembarcodes,orchooseanitemfromalistof“FavoritesItems.”TheSnowShoeiPhoneAppwillcalculateatotalcarbonfootprintbyaddinglocationspecific transport‐related carbon emissions to the SnowShoe Foodie Database’svalue for pre‐producer carbon emissions. To quantify the transport‐relatedemissions, we will use an algorithm to calculate the road distance between theiPhone’scurrentGPS‐derivedlocation(i.e.thelocationofthegrocerystore)andthedistribution location for each food product in our database. The final transportgreenhouse gas emission estimatewill be derived bymultiplying this distance bythe average fuel economyof theUS freight truck fleet and scaling by the productweight.Theuserwillalwayshavefouroptionsafterfindinganitem'sinformation:1)TossInTheCart–theuserspecifiesaquantityandplacesinthecart.2)HoldToCompare–theuserholdsupto5itemstopotentiallyplaceinthecartlater.3)FindSimilar–displaywherethecurrentitemranksintermsofcarbonfootprintintherangeofsimilaritems,andidentifythe“bestincategory”forthefoodtypeinquestion.4)PutBackOnTheShelf–theuserdecidesnottobuytheitem.Thenavigationof theseoptions ismade simpleby the touchscreen capabilities ofthe iPhone.Forexample,placingan item into thecartorbackonto theshelf isaseasyasdraggingtheitem'spictureontothecorrespondingicon.

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NotethatnotallitemsinastoremaybeincludedintheSnowShoeFoodieDatabase,meaning that the applicationwill not be able to process these items. Though ourteamiscommittedtodevelopingthedatabaseascomprehensivelyaspossible,suchsituationsare inevitable.Bysending inSKUphotos thatdonot register,userscanprovidehelpfulfeedbacktohelpguideSnowShoeFoodieDatabaseexpansioneffortswhere they are most necessary. The SnowShoe team is also investigating thepossibilityofincorporatingauser‐supplieddataentryprotocol(thusenablinguserstoprovidedatathroughhe iPhoneapptotheSnowShoeFoodieDatabase), thoughthisprogramfunctionhasnotyetbeenfullyplannedordeveloped.

4.2.3Step3:CheckYourCartAt any time, the user can review the current contents of their “shopping cart” bytouching the cart icon. Items can be removed and quantities can be changed tomatchtheuser'sactualcart.

4.2.4Step4:TakeYourReceiptOnce the user has completed shopping and is ready to checkout, they are givenseveral activity options. Note: this step is designed to provide information andentertainmenttohelpourcustomerspasstimewhilewaitinginthecheckoutlineattheirgrocerystore.First,theusercanreviewtheCO2per$valuefortheircurrentpurchases. AswiththeHomeScreen, thisvaluecanbeeasilycomparedwiththeuser'spastshoppingsessions,aswellaswithregionalandnationaldata.TheuseristhepresentedwiththeoptiontobuycarbonoffsetsdirectlythroughtheSnowShoe iPhone App. SnowShoe LLC is committed to stepping beyond asimple transaction­based model by enabling users to take further action.SnowShoewillsellcarbonoffsetswithoutretailmarkupandwewillimplementaninternal program to audit carbon offset providers and make sure our user’sinvestmentsareactuallytranslatedintorealworldcarbonemissionreductions.Finally,theusercanalsopublishtheircarbonfootprintdatatotheSnowShoeBaseCamponFacebookoronTwitter.

4.3TheSnowShoeBasecamp SnowShoeLLC’sthirdguidingprinciple,thatofdevelopingnetworkconnections,means thatavibrantcommunity isakey ingredientofour long‐termsuccess.TheSnowShoeBaseCamp,comprisedofatraditionalwebsiteandseveralweb2.0userinterfaces(e.g.TwitterFeeds,aFacebookpage,Blogs,etc.),servesasthecentral home for discussion, collaboration, and exploration of foodsustainability.

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Thewebsitewill be updated regularlywith the latest news and opinions on foodsustainability and other important environmental issues, and will be open tocomment from SnowShoe users. Keeping the community updated and directlyconnected with the actions of SnowShoe LLC directly serves our second guidingprinciple:transparency.Amongthenumerousways inwhichtheSnowShoeBasecampwillencourageuserinvolvementandcommunitybuildingarethefollowing:

• Aspaceformemberstoshowtheircreativitywithalocalfoodrecipesection.• “Cookingtutorial”videocontestsusingonlylocalingredients.• Twitter updates highlighting customers who exhibit markedly reduced

carbonfootprintsforagiventimeperiod.Lastly,thewebsitewillannouncetheprogressofSnowShoeLLCintermsofCO2emissionsmitigated‐eitherthroughsustainablebuyingpracticesorcarbonoffsetsthroughtheapp.

5.EnvironmentalManagementandResultsSnowShoe LLC's vision is one of environmental, social, and economic health. Assuch,itisimportanttoassessnotonlythefinancialfutureoftheorganization,butalsothepositiveandnegativeimpactsthatSnowShoeLLCwillhaveontheenvironmentandsociety.The chief environmental benefits of SnowShoe LLC have been quantified using ametric of CO2‐equivalent reduction (outlined in Appendix C). All otherenvironmentalbenefitsandsocialbenefitshavebeenlistedasqualitativefactors.

5.1PositiveSocialImpactsSnowShoeLLCintendsto:

• increaseconsumerawarenessofbuyinghabits.• increaseawarenessofFairTradeproducts.• influenceconsumernutritionhabits,promotinghealthyandlocalfoods.• provideaconnectionbetweenfoodconsumersandproducers.• createanonlinecommunitytoshareinformationandorganize.• increaseconsumerawarenessofclimatechangeanditssocialimpacts.

5.2NegativeSocialImpactsSnowShoeLLCmaybeunabletoavoid:

• marginallyreducingconsumerprivacy.• increasingrelianceoncellphonesandtechnology.• quantifyingfoodonalimitingmetricthatmaynotapplyforallusers.

5.3PositiveEnvironmentalImpactsSnowShoeLLCintendsto:

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• changeconsumerbehaviortofavorlow‐carbonfoods6.• implementaconvenientandrelevantcarbonoffsetprogram.• increasesustainablepracticesamongstfoodproducers.• increaseawarenessofclimatechange.• purchasecarbonoffsetstomitigateourdirectcarbonfootprint(i.e.the

emissionsemanatingfromtheday‐to‐dayoperationsofSnowShoeLLC).

5.4NegativeEnvironmentalImpactsSnowShoeLLCmaybeunabletoavoid:

• databaseserverandcomputingenergy‐related impactson theenvironment thatarenotaccounted for in our carbon offset purchases (e.g. emissions of non‐greenhouse gas airpollutants).

• general negative environmental externalities that are not directlyquantifiable.

• Increasing the number of toxic iPhone batteries and other sources of “e‐waste.”

6.BudgetandFinancialFeasibility

6.1Action‐ReadySolutionAwardBudgetIfSnowShoeLLCreceivestheAction‐ReadySolutiongrandprize,weplantoacceptallbenefitsofferedinconjunctionwiththattitle:the$50,000instartupfunding,the$5,000 in promotional trip funding, and the 12 month office space lease at theUniversityResearchPark’sMetroInnovationCenter(MIC).SnowShoe LLCwill use theMIC as our base of operations for the first year. Thebenefitsofthislocationarenumerousandextremelysignificant.ThroughtheMIC,SnowShoeLLCwillhaveaccesstoa1GBdataconnection,cooledserverroom,andprofessional Internet technology support. We would not be able to afford theseresources on the open market, and, therefore, the office space included in theAction‐ReadySolutiongrandprizeisacriticalpartofourproposedoperation.Of the $50,000 in startup funding, we plan to gift $34,657 to the University ofWisconsin‐MadisonFoundationtofunda12‐month60%projectassistantship(PA).MattLuedkewillacceptthisPApositioninSeptember2010,andwouldworkasaPAassigned toSnowShoeLLC throughAugustof2011. HiringMatt throughaPAappointmentallowsSnowShoeLLCtoofferhimanextremelycompetitivebenefitspackage at dramatically reduced costs, when compared to similar packagescurrentlyavailabletosmallbusinessesthroughtheopenmarket.

6SeeAppendixCforacompletequantificationofSnowShoeLLC’simpactoncarbonemissions

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Therestofthefundswillbeallocatedinthefollowingmanner:iPhonestobeusedinapplicationdevelopment,hiringasubcontractortohelpMattwithprogrammingtheiPhoneapp,andahandheldscannertoexpeditedataentry.

• Approximately $10,000 will be allotted toward a computer server andhardwaretohosttheSnowShoedatabases.

• Approximately$5,000willbeusedtohireasubcontractortohelpprogramtheiPhoneapp.

• $800 will be used to purchase a hand held bar code scanner to expeditedevelopmentoftheSnowShoeLLCdatabase.

• $500 will go towards hiring a lawyer to draft the SnowShoe iPhone AppTermsandConditions.

• $5,000willbeusedtofundapromotionaltrip.TheSnowShoeLLCincomestatement(AppendixA),cashflowstatement(AppendixB),andsalesprojection(AppendixC)arecalculatedassumingthatwecanreach5%market penetration amongst our core audience (the 30% most‐environmentaliPhoneownerswithintheagerangeof19‐54y.o.)withinthreeyearsofoperation.Allgrowthstatisticsassumeanexponentialgrowthcurvethatreachesthisgoal(i.e.630,000totaliPhoneappsales)byJuneof2013.Pleasenote:anexponentialgrowthcurve dictates that app sales in years one and two of operation are dramaticallylowerthanthoseinthefinalyear,and,thus,amorelineargrowthcurvewouldhavea positive impact on our monthly cash flow and yearly income statements. Webelievethat thehereinassumedexponentialgrowthcurverepresentsa low­bound on the full range of growth trajectories that still have SnowShoe LLCreachingtheJune2013totalsalestarget.WhileweanticipatethatSnowShoeLLCwillbeabletofullyimplementtheactivitiesoutlinedinthisproposalwiththeCLCAction‐ReadyAwardasouronlynon‐revenuestart‐up funding, SnowShoe LLC would benefit from other outside fundingopportunities. Thiswouldallowus tohirea subcontractor toassistwithmoreoftheapplicationprogrammingortoacceleratethereleaseofSnowShoeappsfornon‐iPhonesmartphonearchitectures.Otherpossibleusesofadditionalstart‐uprevenueinclude increased traveling for database development and increased advertisingexpenditures.WeappreciatethatwinningtheCLCAction‐ReadyAwardwillbestowsignificantpublicityuponournascent company, andwouldonly serve toenhanceourabilitytosecureadditionalstart‐upcapital.

6.2InnovativeSolutionAwardBudgetIf SnowShoe LLC wins the one of the Most Innovative prizes we would eachpurchaseaniPhoneandthendividetherestofthemoneyequallytohelppayeachmemberforthetimethatweplantocontinueworkingontheproject.Itisstillourgoal to build the iPhone app and databases, andwe have decided to continue to

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work on the SnowShoemovement regardless of CLC funding level. Wewill alsopursueadditionalsourcesoffunding.Weareawareofothercompaniesthatmarketpoint‐of‐salesmartphoneapps,butnone that track carbon emissions.7,8 Most of these apps are designed to informcustomersoffoodrecallsortoprovidenutritionalinformation.InEuropethereareseverallargefooddatabasescreatedtotracksourceinformation. ThesedatabasesweredesignedinresponsetoEuropeanfoodscandalsthattookplaceinthe1990s(e.g. mad cow disease), and they are now used to improve the efficiency of fooddistribution networks and to increase food production safety.9,10 Although thesedatabasesandiPhoneappsmay,atfirstglance,seemsimilartoours,SnowShoeLLCfillsalargevoidnotcurrentlysatisfiedbyotheravailablesmartphoneproducts.SnowShoeplanstobeafirst­moverinourspecificmarketniche. First‐moverstatuswill giveusaheadstart in the constructionofourdatabase resourcesand,therefore,provideanimportantbarriertoentryforanypotentialcompetitors.

7.OrganizationalStructureSnowShoeLLCseekstocreateacultureofcollaboration,both through theexternalactivitiesof theorganizationand its internal structure. The SnowShoe LLC team,comprisedofClausMoberg, JamiMorton,andMattLuedke,met on the UW‐Madison campus in the Nelson Institute'sCenter for Sustainability and the Global Environment(SAGE). While having different geographic and academicbackgrounds, they found that their shared passion forenvironmentalsustainability ledtoeffectiveteamwork.TheCLC competition became an ideal place to put thiscollaborationtowork.

7.1ChiefExecutiveOfficer‐ClausMobergClaus has a marked affinity for interdisciplinarycollaboration and entrepreneurial enterprise. This isexhibited both through his formal academic development

andintheactivitieshepursuesduringhisfreetime.

Claus iscurrentlyanM.S.Candidate in theDepartmentofAtmosphericandOceanic Sciences at the University of Wisconsin. His research uses advanced

7http://www.goodguide.com/AccessedMarch6,20108http://www.readwriteweb.com/archives/ibm_debuts_food_traceability_iphone_app.phpAccessedMarch10,20109http://www.tracetracker.com/AccessedMarch1,201010http://www.foodtraceability.eu/page/homeAccessedFebruary27,2010

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computer modeling techniques to examine the interface between regional‐ andglobal‐scale air pollution and associated impacts on humanwelfare. Unlikemostatmospheric scientists, however,Claus’ undergraduatedegreeswere conducted inthe social sciences: he majored in Political Science and completed an individualmajorentitled“Politics,EconomicsandEnvironmentalStudies”attheUniversityofWisconsin‐Madison,inthespringof2007.Claus has pursued many extracurricular opportunities that have advanced hisunique personal skill set. Perhaps most relevant to SnowShoe LLC was hisparticipation in the 2008 Wisconsin Entrepreneurial Bootcamp. This seven dayintensive learning opportunity is designed to expose science and technologygraduate students to the principles of businessmanagement and entrepreneurialscience.Further,inthesummersof1999,2000and2001,ClausparticipatedinaninternshipwiththeHurricaneResearchDepartmentof theAtlanticOceanographicand Meteorological Laboratory where he took part in hurricane reconnaissanceflights.HehasalsointernedintheofficeoftheHon.JenniferSchilling,aWisconsinState Representative, was the chair of the University ofWisconsin chapter of theSierra Student Coalition andwas a foundingmember of theMadison Clean Energy Coalition. Through these and otherpossitions, he has gained extensive knowledge of energysystems infrastructure, event planning, logisticalorganization,statisticalevaluationanddatamanagement.Born in themountains of North Carolina and raised in thesuburbsofWashingtonDC,Clauscurrently lives inMadisonwith his wife, Christine, and their two dogs. He enjoys icehockey, cycling, skiing, mountaineering, kayaking andanythingelsethatcanbedoneintheoutdoors.

7.2ChiefFinancialOfficer‐JamiMortonWhen Jami is not cooking in her kitchen or at the localfarmers market she is at the UW‐Madison completing herM.S. in Environment and Resources. She transferred fromDuke University in fall 2009 to focus her studies on airqualityandclimatechange.Hercurrentresearchprojectistoadvance scientific understanding of the mercury chemicalcyclewhileusingtheEPA’sCommunityMultiscaleAirQuality(CMAQ)model.JamireceivedaB.S.inChemistryandaminorinEnvironmentalEngineeringandSciencesatColoradoSchoolofMinesin2008. It was her extensive research background that aided her to explorecurrentsmartphoneapplicationsandotherfooddatabases,allowingforSnowShoeLLCtodevelopamorecomprehensiveproduct.

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As an undergrad, Jami participated in many extracurricular organizations whilesupervisingthemonthlybudgetfortwodistinguishedclubs.ShealsowasastudentinternfortwoyearsattheNationalRenewableEnergyLaboratory(NREL)intheirTransportationDepartment.ItwasatNRELwhereshewasexposedtocutting‐edgeresearchrelatingtobiofuels,andstartedtorecognizehowenvironmentalpolicycanbeshapedbyscientificresearch.It is because of Jami’s love of fresh and local food that she became excited aboutSnowShoe LLC and the CLC competition. It is her organization skills and creativethinkingthathasaddedvaluetoSnowShoeLLC’sdevelopment.Shealsocontributedto the financial feasibility of the company and constructed a yearly budget for

SnowShoeLLC.InJami’ssparetimenotonlydoessheenjoycooking and baking, but she takes pleasure in reading,runningaroundMadison,andisabouttostartgardeningforthefirsttime!

7.3ChiefOperatingOfficer‐MattLuedkeMatt is a first‐year graduate student in Civil andEnvironmental Engineering (CEE) at UW‐Madison. Hisundergraduate studies were at the University of Illinois atUrbana‐Champaign(UIUC),graduatingin2009withamajorin Industrial and Entrepreneurial Systems Engineering(IESE) andminor inBusinessAdministration.The systems‐thinkingapproachhedevelopedinthatprogramwashelpfulwhile constructing the SnowShoe LLC product plans,including the logical framework for the SnowShoe iPhoneApp.MattwasalsoasummerinternwiththeIllinoisEnvironmental

ProtectionAgency(IEPA)in2008and2009,intheOfficeofPollutionPrevention. Here he was able to see the interaction between government

andbusinessactors,andtheimportanceofusingadaptableincentivestoencouragesustainable change while making important information accessible to allstakeholders.Thisfocusonincentives,information,andaccessibilityareallcentraltoSnowShoeLLC'smission.He combines this practical knowledgewith important leadership experience fromadvisinga residencehall for twoyearsatUIUC.Hewentbeyond the standard jobresponsibilities by founding and running a residence hall‐based environmentaljustice student group. His community organizing, social marketing, andmanagementexperiencewiththisstudentgroupwillbehelpfultoeffectivelymarketSnowShoeLLCandmaintainitsfocusonenvironmentalandsocialsustainability.Healsoenjoyswritingmusicandhopestolethiscreativesidecontributetomarketing

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and advertising efforts such as the SnowShoe LLC YouTube Video (described inAppendixD).

8.MarketingandSalesStrategyAs stated earlier, SnowShoe LLC’s first guiding principle is data. Any potentialenvironmentalorsocialbenefitswouldbeforfeitiftheinformationremainsunused.Toensurewidespreaddisseminationofinformation,theSnowShoeLLCteamwillpursueanenergeticanddiversemarketingapproach.

The simplest form of marketing will be SnowShoe LLC'sadvertisements. SnowShoe LLC’s primary merchandising logo is anegative image composition of a snowshoe depicted such that thepositive image is an ear of corn. We believe this is an effectivecommunicationofourcompany’s corebeliefsas ithighlightsboththe “footprint” and “food” aspects of our business niche. TheSnowShoebylineisaNativeAmericanproverb:“Wewillbeknownforeverbythetracksweleavebehind.”It isourperceptionthatthetargetmarket(18‐54yearolds) forSnowShoe LLC has grown weary of products advertised in a“billboard”manner,especiallyintheageofsocialtechnology.Inother words, a simple one‐way, advertising‐only marketingscheme will not be successful. While name recognition willcertainly be served by buying ad space on popular online social

networks such as Twitter and Facebook, user feedback andcommunityinvolvementwillbeanevengreaterfocus.RememberthatSnowShoeLLC'svisionistonotjustbeaproduct,orevenjustasolution,

buttobeanentiremovement.Geographically, SnowShoe LLC is currently based in Madison, WI. Themarketing and database development effortswill begin there, andwill expand toother “campustown” communities across theMidwest such as Champaign, IL andAnnArbor,MI.SnowShoeLLC’sfirstmarketingactivitywillbetobeginahealthyconversationwithcampus and community environmental groups, presenting the importance ofSnowShoeLLCinawaythatresonateswiththeircommunitygoalsandvalues.Thesocial andenvironmental sustainability goalsof theSnowShoeLLCmovementarewellalignedwiththesegroups,andproductdemonstrationstothesegroupscouldspurastrongword‐of‐mouthcampaign.At the same time, SnowShoe LLCwill communicate with the local food producercommunity, establishing contacts and showinghowSnowShoeLLC canhelp them

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positionthemselvestogainmarketsharewithawell‐informedconsumerbase.Wewill give food producers a space to describe the environmental benefits of theirpracticesonourSnowShoeBaseCampwebsite,andwilldisplaytheimportanceoftheSnowShoeConsumerBehaviorDatabase.Next, SnowShoe LLC will begin partnerships with several Madison‐area grocerystores. Some storesmay allowus to hold product demonstrations in their stores,videosofwhichwillbepostedontheSnowShoeBaseCampwebsite.Thiswillnotonlyhelpus increasebrandawareness,butwill enhance the store's imageamongouronlineusers.Wealsoplantodevelopanin‐storeadvertisementdisplayingtheSnowShoe LLC logo and informing customers that this particular store has beenfullyenteredinourSnowShoeFoodieDatabase.Thiswillincreaseawarenessofourmovementandalsoencouragecurrentmemberstoregularlyshopatthatstore.As described earlier, the SnowShoe Base Camp web presence will encouragediscussion and foster food sustainability accountability among SnowShoe users.Members can choose to follow SnowShoe LLC on Twitter,whichwill periodicallyupdate with database expansions, cumulative carbon footprint reductions by theSnowShoeLLCmovement,andotherfoodsustainabilitynews.On theFacebookpageandwebsite, theSnowShoeLLC teamwillhostcontests forusercreationssuchas“LocalRecipeCook‐off”videos,environmentalphotography,andeven“EnvironmentalDetectiveWork”(i.e.findingwhereacommunity'swasteis sent, where and how a particular product is made, how many plastic bags aparticular store uses, etc.) The goal of these contests is to spur user action andcreativity in a direction towards which the users already lean but need extraincentives.

9.ProjectedTimelineWe anticipate significantgrowth for SnowShoe LLC inthe first year of operation(July2010‐June2011).July,2010:Wewould liketohave CLC funding awardedtoSnowShoeLLCsometimebetweenJuneandJuly. Wewill have several majorexpenditures for July andAugust of 2010. Theseinclude the purchase of a database server and associated software, computerlicenses and fees, aswell as the hiring of a subcontractor to help construct theiPhoneapp. Thesummerof2010willbeprimarilyusedfordevelopingthefood

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databaseandbuilding the iPhoneapp. Wealsoplan to spend timeapplying foroutside funding opportunities, as we anticipate costly expenses during the firstyearofoperationwithfewrevenuestreams.

September, 2010: SnowShoe LLC plans to gift, to the University of WisconsinFoundation, funds sufficient to supportMatt Luedke as a 60% project assistant(PA) assigned to work with SnowShoe LLC in all business and developmentcapacities.MattwillbetheprimarypersoninchargeofprogrammingtheiPhoneapp andbuilding thedatabase for theperiodofAugust 2010 throughAugust of2011.

October, 2010: The board members of SnowShoe LLC will consult with theWisconsinAlumniResearchFoundation(WARF)aboutprotectingourintellectualproperty rights, including the patentability of both the iPhone app and thedatabases,aswellascopyrightandtrademarkrightsforourcorporateidentity.

November,2010:Priortothereleaseofourfirstproduct,weplantohirealawyertodrafttheTermsandConditionsdocumentthatwilldistributedwiththeiPhoneapp.

December,2010:Itisourhopetohavemorethan50%ofthedatabaseconstructedby the end of the year, withpackaged goods being ourfirstpriority. January, 2011: We plan tolaunch the SnowShoe LLCiPhone app on January 1,2011. Initial advertisinginitiativeswillfocusonsocialnetworking, web2.0, andword‐of‐mouth promotion.Also in January, we plan tosend Matt Luedke to the 7thAnnualCleanTechSummittogain insightful informationfor our business and topromote our product and

ever‐growingdatabase.April, 2011:By the spring of 2011, we will begin assembling the fresh producesection of the SnowShoe LLC database. We expect that defining the carbonfootprint for grocery store produce will be challenging and thus we plan tocontinueworkonthistaskthroughout2011andbeyond.

May2011:Towardtheendofour firstyearofoperation,andoncetheSnowShoeLLCdatabase is sufficiently comprehensive,we anticipate launching a corporatefoodsustainabilityandinstitutionalfoodconsultingenterprise

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Appendices

AppendixA:SnowShoeLLCprojected3‐yearincomestatement

SnowShoe LLC 2010-2011 Income Statement

Year 1

(July 2010-

June 2011)

Year 2

(July 2011-

June 2012)

Year 3

(July 2012-

June 2013)

Revenues CLC income w/o interest 50,000 0 0 Traveling funds from CLC 5,000 0 0 Revenue from app 57 5,474 529,969 Advertisement sells 95 10,258 994,098 Grants 0 50,000 0 Database consulting 10,000 60,000 75,000 Total Revenues 65,152 125,732 1,599,067 Expenses Gift to university for Matt's PA 34,657 0 0 Salary 0 55,000 150,000 Subcontractor fees app 5,000 3,000 2,000 Marketing/advertisement activities 0 7,000 20,000 Taveling for conferences- CLC funds 5,000 10,000 40,000 Computers/ hardware 10,000 5,000 20,000 Software + online security software 0 4,000 6,000 Legal fees - lawyer 500 5,000 5,000 Insurance 0 2,000 10,000 Repairs and Maintaince 0 1,500 3,500 iPhones 3,880 3,880 3,880 traveling for database 0 10,000 10,000 Training fees 0 500 0 Internet service fee 0 7,200 14,400 Utilities 0 2,400 6,000 Miscellaneous 0 3,000 3,000 Hand held scanner 800 800 800 Total Expenses 59,837 120,280 294,580 Net income before income taxes 5,315 5,452 1,304,487 Income taxes 2,126 2,181 45,270 Net income 3,189 3,271 1,259,217

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IncomeStatementExplanation:

Note:thecalculationsemployedintheSnowShoeLLCfinancialdocumentsherepresentedareconservativeinnature.WeconsiderthesenumberstobethelowerboundonprojectedSnowShoeLLCrevenueforallcaseswhereinthecompanyachievesitsstatedgrowthmilestones.Itislikelythatactualmonth‐to‐monthincomewouldbehigher(asaresultofaflatter,lessexponentialusergrowthrate),solongasallgrowthmilestonesare,infact,achieved.IntheeventthatSnowShoeLLCdoesnotmeetourspecificgrowthmilestones,bothmonthlyandend‐of‐yearrevenueswouldobviouslybelowerthanshowninthisforecast.

Revenues:• CLCincomew/ointerest:Weanticipatereceivingthefull$50,000MostAction‐Ready

award• TravelingfundsfromCLC:Wewilltakeadvantageofthe$5000inadditionaltravelfunding

allottedthroughtheCLCMostAction‐ReadyAward.ThesefundswillsupportMattLuedke’sattendanceatthe7thAnnualCleanTechSummitinPalmSprings,CA.

• Revenuefromappsales:AsisoutlinedinappendixC,wehaveforecastanexponentialgrowthcurvethathasSnowShoeLLCreach630,000appsalesbyJuneof2013.Asaresultofthisexponentialgrowthrate,actualappsalesinthefirstyeararequitesmallrelativetothesubstantialgrowthshowninyearthree.The630,000‐salefigureisequalto5%ofthetotalexpectedsizeofourtargetaudienceinJuneof2013.Appswillbesoldatapriceof$1perdownload,with30%ofgrosssalesrevenuekeptbyAppleIncforsalesthroughtheAppleAppStore.7

• Advertisementsales:Wehaveestimatedtotalrevenuefromadvertisingsalestobe$1/month/realuser.Thequantityofrealusers(i.e.userswhoactivelyutilizetheapponaregularbasis)isdefinedhereasthetotalcumulativeSnowShoeiPhoneAppsalesinagivenmonth,reducedby50%toaccountforuserattrition.

• Grants:SnowShoeLLCwillactivelypursueothergreenbusinessplancompetitionfundsandothersimilar“angelgifts.”Tomaintaintheconservativenatureofthehereinprojectedfinancialstatistics,wedonotanticipatereceivinganyadditionalfinance‐freefundsinourfirstyearofoperation,thoughwedoincludeanadditional$50,000infundingforoursecondyear.

• DatabaseConsulting:WearequitecertainthatSnowShoeLLCwillbeabletotranslatethesignificantvalueofourfoodsustainabilitydataresourcesintorealfinancialbenefitsthroughtheconsultingactivitiesdescribedinthisproposal.Wehave,therefore,estimatedannuallyincreasingrevenuesfromtheseactivities,thoughtheexactnatureoftheindividualconsultingagreements(e.g.paymentplansandtermsofservice)have,obviously,yettobedefined.

Expenses:• GifttoUniversityFoundationtofund60%PAappointment:Thesefundswillprovide

MattLuedke’stuition,salaryandbenefitspackageforthe2010‐2011academicschoolyear(Aug2010‐Aug2011).

• Salary:asaresultoffundingMattthroughaPA,wehavenosalaryexpensesinthefirstyear.Weanticipatehiringonefulltimeandonehalf‐timeemployeeinoursecondyearofoperation,and,inourthirdyearofoperation,hiringthreefull‐timeemployees.

• Subcontractorfees:Wewilluse$5000oftheCLCaward,inthefirstyear,tohireasubcontractortobuildsignificantportionsoftheSnowShoeiPhoneApp.WeanticipatedecreasingsubcontractorcostsasSnowShoeLLCinternalprogrammingcapacityisbuiltthroughhiringnewemployeesinyearstwoandthree.

7http://blogs.wsj.com/digits/2009/07/02/just‐how‐successful‐is‐the‐iphone‐app‐store/tab/article/AccessedMarch23,2003

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• Marketing/advertisingactivities:ThefirstyearoftheSnowShoeLLCbudgetdoesnotprovideroomforsignificantadvertising‐explicitexpenditures.However,weanticipatereceivingsignificantpublicityfromwinningtheCLCcompetition,andthroughnon‐traditional“freemarketing”pathways(e.g.wordofmouthandparticipationinweb2.0communitybuildingactivities).89

• Travelingforconferences:Asisstatedabove,wewillacceptthe$5000inCLCtravelfundstosupportMattLuedke’sattendanceatthe7thAnnualCleanTechConferenceinPalmSprings,CA.Weanticipatesendingalargerpresencetosuchconferencesandpublicityopportunitiesinfutureyears,withsuchtravelingexpendituresroughlyscaledtoSnowShoeLLC’srevenuegrowth.

• Computershardware:Weanticipatespending$10,000oncomputertechnologyinthefirstyear,andthatthecapacityattainedatthistimewilllast,withsmallmodifications,throughyeartwo.Wethereforehaverelativelylowcomputerexpendituresforecastforyeartwo,withasecondroundofmajorcapitalinvestmentforecastforyearthreeofSnowShoeLLCoperationtoaccountforexponentialgrowthofouruserbase.

• SoftwareandInternettechnologysecurity:Weexpectthesecoststogrowinproportiontothesizeofouruserbase,andthatsomeoftheservicesprovidedbytheMICwilloffsetthesecostsinSnowShoeLLC’sfirstyear.

• Legalfees:Inthefirstyear,wewillhirealawyertodrafttheSnowShoeiPhoneAppTermsandConditionsdocument.Insubsequentyears,asSnowShoeLLCgrowsintoalargercompany,weanticipateincreasesinourlegalexpendituresfortaxprocessingandreporting,aswellasforotherassortedlegalrequirements.

• Insurance:WedonotanticipateinsuringanyaspectsofSnowShoeLLCactivityorcapitalinthefirstyearofoperation,thoughwewillinsureourcapitalinvestmentsinsubsequentyearsandinaccordancewiththesizeoftheseinvestments.

• Repairsandmaintenance:AsSnowShoeLLCcapitalinvestmentsage,wehaveforecastincreasingrepairandmaintenancecosts.Thesefundswillbesetasideasa“rainydayfund”intheeventthatactualrepairandmaintenancecostsarelowerthanpredicted.

• iPhones:EachofthethreeSnowShoeLLCpartnerswillbegrantedacompanyiPhonetouseiniPhoneappdevelopmentanddatabaseconstructionactivities.

• Travelingfordatabase:InitialdatabaseconstructionwillfocusoncomprehensivecoverageforfooditemssoldinMadison,WI.AscoverageinthesouthernWisconsinregionincreasesinyearstwoandthree,wewillbegintoventureintoadditionalgeographicmarkets,thusnecessitatingtravelexpenditurestoallowfordataentryoflocalandregionalfooditems.

• Trainingfees:Wehaveallottedasmallamountofmoneytofundemployeeenrollmentinatrainingcourseinyeartwo.

• Internetservicefees:DuetotheexcellentinternetserviceprovidedatheMICofficespace,wearefortunatetonotrequireadditionalexpenditureofinternetserviceduringyearoneofoperation.Subsequentyears,however,willseeourinternetserviceexpendituresincreaseinproportiontodatabaseandappuseractivity.

• Utilities:Again,duetothesupportprovidedbytheMIC,wedonotforecastutilityexpendituresinourincomestatementforyearone.

• Miscellaneous:wewillmaintainareservepettycashfundinyearstwoandthreetoprovidefinancialflexibilityandaccountforunforeseenexpenses.

• Handheldscanner:wewillpurchaseonehand‐heldbarcodescannerineachyearofouroperation.

8http://www.mobilemarketingwatch.com/free‐iphone‐apps‐ad‐revenue‐still‐steadily‐increasing/AccessedMarch23,20039http://techcrunch.com/2009/05/06/just‐how‐much‐money‐can‐free‐iphone‐apps‐make‐quite‐a‐bit/AccessedMarch23,2003