Rick Harlow
Campbell, CA (USA)
Role(s):
Founder/Owner/Principal
CleanAire
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Startup
Location:
Campbell
Industry:
Bio-Technology
Year Founded:
2009
Number Employees:
1-10 people
Description:
CleanAire is an exciting start-up company based in San Jose, California, in the newly emerging field of Automatic Toilet Ventilation Systems.
The innovative green products CleanAire, will introduce to the consumer and commercial markets are new, different and attractive; key factors to a successful and profitable brand.
Products and Services
CleanAire, Inc. (CleanAire) will develop and distribute Automatic Toilet Ventilation Systems (ATVS). ATVS's are toilet systems that automatically eliminate toilet use odor and airborne pathogens during toilet use, at the source. These systems are green technology systems that reduce electricity use and water consumption. To operate, our systems require a consumable filter. The manufacturing of our systems will be subcontracted through Magic Plastics of Valencia, California. CleanAire will develop the supporting software and systems internally. CleanAire systems can reduce overall bathroom ventilation costs by up to 70% while creating an odor free environment and reduced airborne pathogen exposure. Our systems can be customized by the manufacturer for different applications.
Market
Our primary target markets include, but are not limited to, high rise commercial and residential buildings, sport stadiums, the family consumer, channel sales to original equipment manufacturers (OEM's), boat manufacturers and the governmental arena, among others.
We predict our systems will appeal strongly to families concerned with the safety of their loved ones and the conservation of the environment.
The combined number of "potential" customers for our products is well over 500,000,000 with millions in the first 5 years. However, we will focus on a more realistic and attainable five-year sales goal of roughly 500,000 units.
It is important to note the company's future results could differ materially from those projected because of a number of factors, including, but not limited to, general financing conditions, competitor pricing activity and expense volatility.
Objectives
CleanAire has identified three types of objectives that will serve as challenging but attainable goals for the organization. They are:
Business Objectives
a. To become the market leader in the new and emerging Automatic Toilet Ventilation Systems (ATVS) global arena
b. To reach profitability within two years of the company's launch
c. To develop multiple profit centers such as retail outlets, product licensing, commercial OEM licensing, incremental toilet ventilation innovations and eventually expand into other toilet sanitation markets.
Financial Objectives
a. Increase product sales to several million dollars annually by the end of the third year
b. Bring gross margin up and maintain that high level by the third year
c. Improve inventory turnover on an ongoing basis, until "just-in-time" inventory is standard by the third year
Marketing Objectives
a. Focus on target marketing to increase market penetration and domination
b. Expand target markets with controlled growth
c. Establish brand awareness for the CleanAire name and products
d. Position ourselves as the leading Automatic Toilet Ventilation Systems Company in the world
e. Aggressive distribution
Keys to Success
• Product quality and efficiency for real-life situations.
• Utilizing next-generation technology in order to improve upon current systems, while differentiating ourselves from our competition.
• Marketing: dealing with channel issues and/or barriers to entry and solving problems with major advertising and promotion budgets in order to penetrate our target markets.
• Management: products delivered on time, costs controlled, and marketing budgets managed. There is a temptation to increase growth at the expense of profits; we will keep a close eye on this temptation in order to live up to our plan.
• Sustaining controlled growth in order to manage start-up costs more efficiently.
To maintain these key factors, CleanAire needs to include start-up funding, aggressive marketing, quality sales professionals, accomplished C-Level management, product branding, increasing reach into target markets, affiliating with the right channel licensees, competitive intelligence and appropriate use of evolving technologies.
2.0 Company History
MISSION STATEMENT
CleanAire commits to helping people live healthier lives by making toilet sanitation safer through our state of the art systems that will eliminate offensive bathroom odor and airborne pathogen risks related to toilet use while reducing the consumption of limited environmental resources.
COMPANY STATEMENT
CleanAire succeeds by delivering outstanding performance.
We believe in service beyond expectation, achieved through a constant desire to anticipate and fulfill evolving customer needs.
The integrity, intelligence and commitment of our people are vital to CleanAire's mission. We share pride in the Company and respect each individual's contribution at every level.
Exemplary customer relationships drive CleanAire's growth and prosperity.
CleanAire is dedicated to pushing the limits of excellence, standing at the forefront to provide the finest and healthiest environments attainable in the industry.
CleanAire always strives to exceed its best.
3.0 Market Research
CleanAire has developed revolutionary systems for the restroom environment which reduces ventilation electricity usage by as much as 70% of what is required to recondition the air back to thermostatic settings. This equates to millions of kilowatts of electricity saved per year. Furthermore, CleanAire systems will aide in reducing the amount of water wasted whenever a toilet is used, by at least 6 gallons of water per day, per toilet. CleanAire will also extract airborne pathogens associated to toilet use by up to 99.95%. Finally, CleanAire will eliminate the need for aerosol sprays and deodorizers which only masks odors and expose consumers to chemical hazards.
There are 300 to 350 million toilets in use in America alone.
Architects and builders now produce homes and commercial buildings to much tighter standards against outside air leaks. Ironically, this causes indoor air pollution to build up more than in previous designs. To counteract this, they use ventilation to improve indoor air quality through the dilution of indoor air pollutants, stale or bad odors and the introduction of more oxygen. Unfortunately, this causes the air to be re-conditioned which is contributing to greenhouse gases on a scale of millions of tons per day. Despite all this, elimination of infectious airborne pathogens are rarely addressed.
One of the ways airborne disease transmission occurs is when pathogenic microorganisms hitchhike on dust particles or respiratory droplets through the human defecation process which can send these unhealthy pathogens airborne.
Pathogenic microbes are initially distributed in droplets, about 10-100 microns in diameter. These dry quickly to droplet nuclei of 1-4 microns, averaging about 3 microns in size, containing viruses or bacteria.
In office environments, a US Department of Labor website states: “Inadequate or improper ventilation is the cause of about half of all indoor air quality (IAQ) problems in non-industrial workplaces.” Indoor air can be two to five times more polluted than outdoor air, and in extreme cases, improper ventilation causes contributes to “sick building syndrome”, according the US Environmental Protection Agency.
Furthermore, although no one talks about it much, most everyone “courtesy flushes” at least once and sometimes multiple times during toilet use to try to get rid defecation odor. This results in thousands of acre feet of water to be unnecessarily wasted daily to try to get rid of defecation odor in the U.S.
AB32, California’s 2006 effort to cap green house gas emissions is the first state attempt of its kind and as a result companies like CleanAire have been formed.
US Toilet Data
• There are 300 to 350 million toilets in use in the US. (2003)*
• There are approximately 225 million residential toilets in use in the US. (2003)*
• There are approximately 75 to 125 million commercial toilets in use in the US. (2003)*
• There are 9 million toilet seats sold annually. (2003)*
• There are 8 million toilets installed annually. (2003)*
• In 1996, there was $52.9 billion spent on toilet articles and preparations. *
• In 1999, there was $176 billion spent on plumbing fixtures and hardware in the U.S. *
Water & Electricity
• National Energy Average cost per kilowatt $0.0928. *
• In 1996, $99.3 billion was spent on electricity and $4.2 billion spent on water in the U.S. *
• The average kilowatts per unit for a 50 cfm overhead fan is 226.45 kilowatts per year. (2007 HVI)
• Average kilowatts per CleanAire unit (13.8 CFM) is 12.69 per year.
• Restroom airflow in CFM (Cubic Feet per Minute) is 50 CFM per toilet (2006 IMC, 2007 HVI) vs. CleanAire’s @ 13.8 CFM.
• Electricity savings using CleanAire vs. overhead fan @ national average is 86%. (CleanAire would be 12.69 KWh per year vs. overhead fan 226.45 KWh per year = 86% savings)
Water Conservation Fact: If 10% of estimated US residential toilets, which equates to 16,114,600 toilets, used CleanAire systems and that population did not “courtesy flush” just one time (1.6 gallons), 25,783,360 gallons of water would be saved. The average cost savings for that water use reduction is $64,458.00 based on the average cost of tap water per gallon @ $0.0025.
Target Market
Individuals and businesses with an income of over $100k per year equates to 52.58% of the US population. CleanAire’s overall target market is 1% of the 52.58% of the U.S. population.
Commercial Buildings
• There is an average of 4,645,000 commercial buildings in the US. (2003) *
• The national average of toilets in building rest rooms is based on the number of employees and egress. (2006 IBC, IPC, CAPC)
• The national average of commercial building area is 13,900 square feet. (2006) *
• The average worker population per commercial building is 64 people. (2006) *
• There is a minimum average of 6 toilets per commercial building based upon the national requirements being 1 toilet per 25 persons up to the first 50 persons and 1 per 50 for the remainder exceeding 50 and 1 ADA toilet (American Disability Association) per sex. (2006 IBC, IPC, CAPC)
• The average commercial building use per week is 61 hrs. That equates to 3,172 hours per year.
• Average CFM reduction per building using CleanAire systems is 217.8 CFM
• Average cost savings per commercial building is $132.00 per year at the national average electrical cost of $0.0928 per KWh (Kilowatt hours). (2006)*
• Electricity savings using CleanAire vs. overhead fan at the national average is 86%. (CleanAire would be 12.69 KWh per year vs. 226.45 Kilowatts per year = 86% savings)
Commercial Building savings at 10% of US population numbers:
• CFM Savings: 100,889,400 CFM airflow requirements eliminated.
• Electricity Savings: 595,749 MWh = $55,282,000.00 per year (Average Commercial Building working hours is 61 hours per week, 3,172 hrs per year. All electricity savings figures are based on this formula.)
• Water Savings: 17,836,800 gallons of water per day (54.74 acre feet) through reduction of “courtesy flushes” (based on 4 flushes per day @ 1.6 GPF [gallons per flush]). 6,510,432,000 gallons of water can be saved per year on courtesy flushes by using CleanAire Products.
Assisted Living/Nursing Homes
• Patients and Staff equates to 3,415,568 (2005)*
• Number of Facilities US: 15,898 (2005)*
• Number of beds/units: 1,743,000 (2005)*
• Toilets in these facilities are 1 per 10 persons, including staff. (2007 IPC, IBC, CAPC)
• The total population of people that were 65 and older in 2005 was 37 million and the 2025 projection is 64 million. (2003)*
Assisted Living/Nursing Care Facility savings at 10% of US population numbers:
• CFM Savings: 300,573 CFM
• Electricity Savings: 7,301,186 KWh = $677,550.00 per year
• Water Savings (4 flushes per day): 218,598 gallons of water per day.
Hospitals
• There are 5,764 hospitals in the U.S. (2003)*
• In 1996, 18 million people had digestive tract injuries. *
• Approximate total number of rooms was at 695,000 and that equates to a 167.5 rooms per hospital. (2003)*
• Toilets per room in a hospital are at a scale of 1 toilet per room and toilets per staff are at 1 toilet per 25 staff members. There is 1.5 nursing staff per patient. (2007 IBC, IPC, CAPC)
• Total staff with rooms equals 2,412,500 toilets.
• These figures do not include medical offices.
Hospital savings at 10% of US population total numbers:
• CFM Savings: 8,733,250 CFM
• Electricity Savings: 5,1569,600 KWh = $4,785,659.00 per year
• Water Savings (4 flushes per day): 1,544,000 gallons of water per day (4.74 acre feet)
Residential
• Total households in the U.S. in 2005 were 126,316,131 with 2.59 persons per household.*
• Minimum toilets of households were 188,766,000,000. (2005)*