WHERE TRASH BECOMES TREASURE

STUDENT COMPANY REPORT

TEACHER: ÜLLE SEEVRI MENTOR: JUTA KUHLBERG

ESTONIA HUGO TREFFNER GYMNASIUM 2016/2017 1. EXECUTIVE SUMMMARY

Costs Mission Statement - make living green so comfortable that it becomes a natural way of life

PRODUCT DEVELOPMENT 1. Add thin layer of SHARE CAPITAL PRODUCTION composting powder 120€ 1885.48€ 2. Throw in first waste IMPACT MARKETING 3. Add a bit of bacterial • Clients’ ecological footprint reduced 111.3€ liquid by approximately 8.3% OTHER • Collective carbon footprint reduced PROFIT 4. Plug in! by almost 3,700 m2 2448.22€ 323€ 5. Keep adding trash • Over 6000 kg biowaste recycled • Fertilizer for more than 20,000 6. Add substances every owerpots produced SALES LOAN two weeks 3278€ 70€ 7. After 2 months, take AWARDS 1300€ out the humus! Income Figure 3: Cash flow Figure 1: Simple Manual Figure 2: Impact

2016 2016 2016 2017 2017 2017 2017 2017 Skills Attitudes AUG OCT DEC JAN APR MAY JUN JUL 100% recycling habit Time management Environmental awareness Teamwork Challenges are Communication skills opportunities, not problems Running a company Learning Integrity Accounting Experiences READY TO 30 Innovative thinking IDEA PROTOTYPE 1st CLIENT NEW MODEL 1 HOUSEHOLDS PRODUCE Product BEST SC IN COYC 2017 Knowledge Festera produces innovative ESTONIA BRUSSELS Chemistry Business concepts Biology Engineering bioboxes that recycle food waste in Figure 4: Company Timeline Physics Marketing the home environment. Vision - Bioboxes are as common as smoke detectors. Figure 5: Learning Experiences

Advantages: Looking Back Table of Contents • 10 times quicker than common We have achieved all of our goals: reducing the carbon footprint of an average household, 1. EXECUTIVE SUMMARY composting promoting sustainable recycling culture in general, improving our business skills as a team 2. PRODUCT • no smell and doing all of that profitably. 3. THE DIFFERENCE WE MAKE • comfortable We have created a complicated product in co-operation with over 30 specialists and 4. PRODUCT DEVELOPMENT 5. BUSINESS STRUCTURE • producing nutritious humus enterprises. Festera biobox qualified for the CE certificate, the product is still in continuous 6. MARKETING • natural fertilizer development. 7. RESULTS • indoors, operational around the Festera has received 10 prizes from 6 different business and innovation competitions. 8. CHALLENGES 9. FUTURE year Last but not least, Festera LLC was founded on June 8, 2017. 10. ADDITIONAL INFORMATION 2. PRODUCT

Festera produces indoor trash cans 0.432 kW per hour and costs 9 cents Outer case Hatch Made from durable birch plywood and coated in - “bioboxes” - that recycle biological per month for an average European Makes access to humus high protection natural varnish which protects waste. In less than two months all of the citizen. 6-month set of two substances possible during the wood. composting period. family’s food waste is turned into a box necessary for the process are included Ventilation full of humus. in the price of the biobox. Ducts for a spontaneous air flow and faster process. Inner case We were convinced from the Made from plywood and covered in durable Our solution is unique and innovative - beginning that we would continue as a organic plastic. we use two microbiological substances, limited liability company and therefore BIOWASTE Bacterial liquid Contains microorganisms (from Mesophilic and heating and ventilation. The process could give our clients a 2-year warranty. Thermophilic families) that degrade the waste, help is user-friendly, extremely fast and Considering the quality of components remove bad smell and create pores into the humus. The bacteria used are harmless to the user. odourless. Using a Festera biobox used in the production of our bioboxes Natural composting powder reduces the ecological footprint of a we estimate their service life to be at Contains seaweed and helps to keep the necessary household by an estimated 8.3%[1]. least 10 -15 years. SEMIDEGRADED PH and humidity levels inside the Festera biobox. It also adds necessary elements to humus to make it more nutritious. Using the Biobox User Safety Insulation The outer case is insulated with 3cm Currently Festera produces two versions Safety has always been our main priority. aluminum faced rockwool. It is heat-saving 12V of the biobox - Magna (40l) and Minima Fireproof varnish is used around the and reduces heat loss remarkably. (25l). When using the bigger version, an heater and the temperature only rises to Electrical components HUMUS Electrical components. The heating system works on average 4-member family has to empty 50 degrees. We tested the decomposing direct current with a 12V 1.5A 18W adapter and 1.72 it once every 2-3 months instead of process successfully in Estonian ohms/m resistance wire combination. This gives the temperature of ca 50°C to make the conditions for taking food leftovers out every other University of Life Sciences to make sure microorganisms ideal. day. The volume of the trash is reduced that the amounts of separating gases Figure 6: Technical Details of Festera Magna by over 2 times during this time Using (CO₂, CO, CH₄) are not harmful to the user our product is passive - there is no (table 1). All the used materials are non- tests at accredited labs. Our product Magna (40l) is optimal for an average need to take care of it daily. It takes allergenic, the outer water-based polish had to comply with Restriction of Estonian family and the newer Minima about a month to produce humus with is environmentally friendly. We have also Hazardous Substances Directive, The (25l) was created in response to clients’ Festera, in standard outdoor conditions paid attention to child safety - the corners Electromagnetic Compatibility (EMC) feedback and research. Our aim is to it would take about a year[2]. Electrical of the lid are round. Bumpers avoid noisy Directive and General Product Safety create beautiful designs so the users do consumption of the biobox is marginal closing of the biobox. Directive. Today we can proudly say not have to hide Festera’s bioboxes under - when plugged in for a month, it takes To ensure the safety of our product that Festera’s bioboxes and its solutions their sinks, but can use them as a part of (and for marketing purposes), we have been proven safe by the Technical the decor. We have chosen minimalistic Gas Festera Festera + air Safe limit found applying for the CE certificate[3] Regulatory Authority of Estonia. style to suit both cosy country houses CO 0,032% 0,097% 0,1% 2 inevitable. It has been one of the and modern city kitchens. We also offer CO 0,034% 0,034% 0,52% most complex processes so far, as Design and Functionality the option to customize the colour of Table 1: Amount of separating gases, ULS we had to conduct several safety We have designed 2 different versions: your biobox for an extra fee. 3. THE DIFFERENCE WE MAKE

We have taken the responsibility to surpasses these problems and allows easy the future. Some clients already grow Denmark KosovoRomania Switzerland Serbia Cyprus 800 Poland promote green lifestyle, especially and convenient recycling of biowaste. flowers, herbs, onions, etc. on their Luxembourg Bosnia nad Herzegovina 700 handling the waste correctly. Carbon footprint of the production and window sills on self-produced humus. Germany 600 Czech Republic 500 Malta Slovakia of the electricity consumed is marginal. Self-grown pure food is not so common 400 Ireland 300 Estonia Environmental Impact Festera creates 3 main channels for these days - being able to follow the Austria 200 Hungary 100 Montenegro FYR Macedonia Saving the environment should be preventing CO2 from being released into process is a great added value. Netherlands Croatia everyone’s concern - out of 17 warmest the atmosphere. 1. It brings biowaste Iceland Turkey recorded years 16 have been after the back to the natural cycle and keeps it Educational Impact Greece Belgium [4] France Bulgaria year 2000 . Our product reduces the from being burned and turned into We want to take children back to nature- Finland Norway Italy Latvia average user’s carbon footprint 8.3% CO and CO₂. 2. Compost helps to bind awareness. The kids living in cities often United Kingdom Spain Portugal SloveniaLithuaniaSweden while actually making the users’ life carbon dioxide to the soil. 3. Self-made have no idea where the carrots in their easier. This is quite a large impact since humus replaces chemical fertilizers - salad come from. It is exciting and usually it takes so much effort to shave sources of harmful gases. In the long educating for them to experience the Figure 8: Municipal waste in kg per capita. Eurostat (2015)[7] off even a percent or two. To achieve a run, it saves fuel of garbage trucks. trouble and pleasure of growing their similar effect per year, a person should own food. Using Festera and sorting way of thinking. To spread the mindset stop using a car for a whole month or Ecological or carbon footprint[6] trash is like a game - we have created to as many kids as possible, we introduce [5] The total amount of greenhouse gas give up electricity for 3 months . People emissions caused by an individual, a playful user manual for children. our product and recycling in schools. do not recycle biowaste since it turns organisation, event or product. Learning by playing helps them take We will start with pilot projects of taking unpleasant really quickly; our biobox recycling and nature-friendly life for our bioboxes to school corridors and Social Impact granted. It is our mission - people should canteens, our school has purchased 3 Perhaps even more important than the live green lives without even noticing. products, other schools have already 0% to 14,9%

14,9% to 29,7% tangible results is the change in attitude Kids can learn the cycle of nature - soil shown their interest. Our vision is having 29,7% to 42,5% towards recycling. Purchasing our is created, plants are growing, crop is our bioboxes in every Estonian school 42,5% to 48% product is a decisive step on the way harvested and it will turn into soil again. in a few years. Visiting schools offers a 48% to 66,1%

towards sustainable recycling culture - They can see chemistry and biology unique and constant marketing channel over half of our customers have started functioning in real life. - people aware of green mindset are to sort all of their waste. Sure we cannot reach all the families, more likely to buy our product. Humus from our biobox is as not everybody cares about the green nutritious as the other fertilizers but completely natural. Creating a The Trouble with Trash In Estonia only 20% of waste is being sorted. 1/3 of household waste burned is biowaste community of self-supporting urban that could be brought back to circulation. Every year 160,000 t of CO2 is thrown into gardeners is a part of our vision - atmosphere. As seen on figures 7 and 8 both the recycling levels as well as overall people growing at least some of their trash production vary a lot between the countries. In some of our potential target

vegetables on their rooftops or in small markets it is important to start with introducing green thinking since recycling is not so Figure 7: Municipal waste recycling rates. Eurostat (2015)[7] gardens would be a great concept for widespread, in other countries we can focus more on sales. 4. PRODUCT DEVELOPMENT

2016 AUGUST research of components suitable heating system 3/01 15/05 idea of a 30/10 no smell rst product sold rst re ll round sold BIOBOX rst prototype added thermal insulation child friendly user manual CRISIS production in partnership research & consultations re safety partner stopped producing carbon footprint calculator with a furniture company co-op with experts and fire safety service essential component additional development

T enzymes our product is safe search for new suppliers testing prototype F dead end 31 units sold improvement in quality bacteria decomposing stench with the new supplier LLC 8/06 negative feedback from experts researching heater solution 15/12 idea to produce bacteria by ourselves customer feedback certi cate

T heater installation impossible starting production demand for a smaller box partners own system user manual co-op with Green Marine company producing high costs new development impulse bacteria in Estonia not economical co-op with University of exports Life Sciences testing testing wires increase eciency emitted gases are safe Festera Minima Festera Magna bacterial liquid and compost powder consulted physisists FT

Figure 9: Product Development Timeline

Product development was both the most bacteria was not feasible. We had to find energy efficient heat source. None of the in a workshop by himself. At the moment difficult as well as interesting process of alternative options and came up with ones available in stores suited our needs. our partners supply us with details, but the Festera experience. As can be seen on pre-produced bacteria. However, there We contacted physicists who gave us the assembling is done by ourselves. figure 9 the timeline of our biobox was are severe restrictions on importing recommendations for building our own not linear but had many branches and such substances from outside the EU. system. We found the perfect solution New Projects dead ends that had to be corrected or The easiest solution turned out to be by trial and error: the final result was a Later product development included directed. finding an Estonian partner, which we resistor wire based heating system. launching a smaller version of the biobox fortunately could. as well as adding a hatch and getting From an Idea to Reality Details Make the Difference rid of the inner plastic bag in the larger Right from the start most people liked Sticks and Stones Simultaneously we worked on the outer version. We have started cooperating our idea of an indoor biowaste recycler One problem solved, another arose. On design of the biobox. While working on with the Green Marine to produce much but were pessimistic whether we the third week of our tests the compost the appearance, we were inspired by the larger bioboxes for the use on Tallink could achieve a working prototype. started to stink and fruit flies appeared. Nordic taste of furniture. For the sake of ships. Hopefully we can use the the same We received negative feedback from We found that the temperature of the user’s comfort and preserving the inner solution for other business to business business contest juries who doubted compost was too low (about 30 °C). We part, we added an extra box into the sales as well as in school canteens. that a student company could realize this put the testcontainer in a bathroom with plywood shell. Air outlets for the aerobic Whatever the direction - we have idea. Even our own teacher was afraid floor heating for a trial, where the compost bacteria also function as decorational learned that with a product like ours the that we are not able to fulfill our dream. achieved a temperature of 40 degrees elements. Our product manager development process never ends. You In part they were right: our first idea of and the stench and flies disappeared[8]. developed and installed the heating always have to look for new solutions to producing our own strain of enzymes or We needed to find a compact and system and assembled the finished box stay competitive. 5. BUSINESS STRUCTURE

Festera has four members: the CEO groups. Urban people can form even Competing Solutions Festera’s advantages Their advantages Kevin Reisenbuk, production manager bigger part of the client base in the Automatic solutions, high High-tech composters in USA Low power usage, natural design, lower Kris-Robin Sirge, marketing manager future because more and more cities are efficiency, better known direct competitor price, better for smaller kitchens Joonatan Oras and CFO Sandra Võsaste turning recycling mandatory. brands .When a decision has to be made, we all A great opportunity for B2B sales Small simple boxes made of Natural material does not smell, more Lower price, washable in have one vote and the majority wins. In arose in May when we received a plastic or glass efficient, more space for waste. dishwashers case of a tie, the person responsible for cooperation offer from Green Marine direct competitor Municipal trash service Saves time for users, low transportation the given field decides. We took care to LTD. It is the company in charge for People are used to them divide tasks equally since we chose not the waste management in all bigger indirect competitor costs, humus for plants to pay salaries. Estonian harbours and Tallink ships. Less care needed, more sterile, not Solutions with earthworms everybody likes worms as pets, more waste No power needed Currently we are working on a pilot indirect competitor can be processed, less restrictions for Target Group and Clients project to produce a special and much processed food, no insects Compost piles in gardens Faster process, indoor possibility, no smell, Right from the start we considered larger biobox for their needs. If the pilot Easiest way to compost our primary target group to be turns out to be successful we can use the indirect competitor usable environmentalists and vegans (at least same product for other companies as Table 2: Competitive analysis 15,000 in Estonia). These people care well. The best scenario includes having about saving the environment but the bigger versions of our bioboxes usable, and serve an exact purpose. We experts. The Centre of Creative Industries vegans also produce lots of biowaste. on more than 20 ships in a few years’ hope that this innovation will help keep of Tartu facilitated the creation of our The next larger target group is time. Since they could not draw up a Festera’s bioboxes competitive on the business model. We did easier design urbanised people living fast-paced lives. contract with a student company we market for a long time. works ourselves, but bought most of We call this the “much-money-little- had to establish our LLC already at the the commercial photos and art & design time” group. They value comfort, small beginning of June. Our Partners and Experts service from our schoolmates. By doing ecological footprint, keeping up with We have had numerous partners and so we were sure of the quality of the time and design. So far these estimates Competitive Analysis experts supporting us in the different work and could also help young and have been proven to be true as most We started our first competitivestages of the complicated production. talented people to get started. of our customers come from these analysis before producing and renewed Since different stages needed different We have co-operated with 3 leading it continuously. Now we are proud to competence, we constantly looked for universities in Estonia - University of Tartu, say that our biobox is unique - no other new experts. Biobox’s wooden case is University of Life Sciences and Tallinn B2B company producing recyclers for regular made by Estonian furniture company University of Technology. Universities visionaries households uses the same solutions. We Sisuko who consulted us in developing helped us to boost our product to vegans urban schools divided the competition into direct and the design and offered a place for maximum efficiency and make it safe for environmentalists people green thumbs indirect competitors. building our final product. Estonian users (electrical engineering, separation families Our bioboxes are innovative: they Environmental Investment Centre gave of gases and other scientific questions). turned out to be unique in this market us an opportunity to participate in Altogether we have consulted with 33 Figure 10: Target groups and potential clients segment and price range, are readily an educational contest with different specialists. 6. MARKETING BRUSSELS 2017 We used an integrated marketing Festera biobox. 4. Wide-ranging learning approach where all of the details experience including problem solving, supported our key values - environment COYC ESTONIA communicating with experts, etc. JA Helsinki Fair and customer focus. This included best product a common visual identity for all our JA Riga Fair Festera in the Headlines materials (logo, product design, A great way to spread our green ideas clothing, sales stand, photos, etc.) and top 10 ideas and introduce our product has been 1000€ prize JA Tallinn Fair saving resources on every step. If it was idea for Minima media. About 30 publications and necessary to have printed materials best product magazines (biggest newspaper among 300€ we used recycled paper. Our own Tartu Fair them) and 4 major radio stations in eco-innovation prize best product accounting was totally paper free. best potential Pärnu Christmas Fair Estonia reflected our business during first fair & feedback the student company period. Sales Channels - More is Better We sold 25% of our products through CONFERENCES EVENTS FAIRS “If you’re not on Facebook...” social media, 30% at trade fairs and Social media has been the best and 45% through our webpage. In our long- Figure 11: From Polar Bears to Brussels easiest marketing channel for our target term plans we see resellers increasing mouth-to mouth marketing and learned Since we think that eco-friendliness group. Our sponsored ads reached over to 90%. Although the profit margin is networking. At first we were not very should be planted to children’s minds 50,000 people. So far, we have sold 7 substantially lower than of direct sales, successful since nobody believed we in early childhood, we have given products through Facebook, therefore it offers many benefits: lower marketing can actually create a working prototype. presentations in several conferences. the expense has paid off (used 35 costs, pre-existing sales network, larger However, we got invaluable feedback and In the biggest festival organised by euros on advertising). We took our sales volumes, brand development, etc. a lot of questions we had to find answers University of Tartu we introduced product to several photoshoots and This way we can also focus more on to. Later, when we had a sellable product recycling to more than 600 elementary made humorous videos for introducing product development. Our product can we started winning prizes. Altogether we school students. We were happy to Festera. Right now our Facebook and already be bought at six eco shops all got 10 awards at 6 contests, with total receive an invitation to perform in a Instagram pages have more than 1,500 over Estonia and at the newest market in prize money 1,300€. The most thrilling summer camp to 100 children. followers and our webpage has over central Tallinn. We are also in negotiations experience was literally jumping into The main benefits of these events 5,000 visitors. We have estimated that with the largest hardware store and the unknown and ice cold water - at are: 1. Free marketing as they are around 1% of our web page visitors furniture shop chains in Estonia. Polar Bear Pitching 2017 in Finland, covered widely in Estonian media. 2. actually purchase our product. In the Oulu we had to pitch in an icehole. The Both positive and critical feedback near future we aim to bring up the Events - Polar Bears and Prizes event was not only our first international have helped us develop our product number of visitors substantially through In addition to student company events, experience, but training in -20 degrees in unforeseen ways (e.g. the need for different campaigns. We will start with we started taking part in business in Estonia and finally competing in Oulu the CE certificate arose from one of different challenges and have already and innovation contests for startups among startups was the most fun we these events). 3. Prize money that we reflected our clients’ success stories with where we got our first experience with have ever had with our team. reinvested in the development of the Festera bioboxes. 7. RESULTS

We are satisfied that Festera has related to presentations in schools production techniques and raw BALANCE SHEET (EUR) 5.06.17 made a difference, but only aand conferences. We can estimate materials. The biodegrading Current Assets Liabilities fraction has been done considering that through our customers the substances for 6 months are Stock 161 Bank Overdraft 0 all the possibilities. bioboxes have been introduced priced at 25€. Since we buy these Debtors 0 Loans 0 close to a thousand people. During substances in bulk the cost per one Cash in Bank 2,096.22 Creditors 0 Impact different events we have presented package is 9€ for us. Cash in Hand 311 Owners Equity Today our biobox is in 31 homes, our product and way of thinking to at Profit 2,448.22 including that of our prime minister least 5,000 people. We can estimate Profit and Reinvestment Share Capital 120 Total Liabilities and Total 2,568.22 2,568.22 mr Jüri Ratas. Since we receive active that our message has reached about Our total income was 4,768€ of Owners’ Equity mouth-to-mouth and online feedback 200,000 people through media. which 1,300€ was prize money. Table 3: Balance Sheet from approximately half of our clients, Our costs were 2,319.78€, profit we are also able to evaluate the impact Finances 2448.22€ and profit margin 51.3% PROFIT AND LOSS ACCOUNT (EUR) 28.10.2016 - 5.06.2017 Festera has had on people. Our client Share capital was 120€. It proved to be (24.1% without awards). Due to a Business Actual families have recycled almost 6,100 insufficient and we had to take a loan long product development period plan kg of trash and created as much of 70€ to develop the first prototype. real sales could be started at the Income 4,768 humus - enough for fertilizing about We are grateful to our partners for beginning of 2017. The sales have Sales 3,570 3,278 20,250 flowerpots. These actionsflexible contracts and setting long gone up steadily during the past few Awards 0 1,300 have reduced the collective carbon term payment deadlines so we months and we are confident that a Materials (purchases) 1000 1,146.48 footprint over 3,500 m². could get started. A huge relief was whole year of selling will guarantee Production Wages 300 900 Even more important than the our first prize in January - 300€ from us a much larger income. Closing Stock (2) 161 tangible results is the change in an environmental contest. Further Without development of the Cost of Sales (B+C-D) 1,300 1,885.48 attitude we have seen in people. development could already be Minima, continuously developing Gross Profit (A-E) 2,270 2,882.52 Salaries, commissions 0 5 Festera has a wider impact than only financed from sales. the Magna and acquiring the CE and Bonuses the direct waste our clients recycle. We estimate that the proper certificate our sales could have fallen Licences 310 A lot of our marketing efforts are starting capital should have been by around 20-30% but we could have Registration fee 5 13 Figure 12: Pricing and margins about 1,000€. This was, however, more saved 755 €, making our hypothetical Marketing cost 100 106.3 200 139€ 159€ 159€ 139€ than our founding members could profit around 3,200€. We made this Total Expenses 105 434.3 150 afford. The fact that we could manage conscious choice to invest most of Operating Profit 2,165 2,448.22 69€ 77€ with minimal funds was an invaluable our profit including prize money into Miscellaneus Income 61€ 100 79€ Margin experience: it forced us to get very product development early on. In the Net Profit 2,448.22 90€ 82€ 78€ Production Appropriations of 2,165 0 2,448.22 50 60€ costs creative analyse all different options. long run, this decision will guarantee us a steady basis for the future, but in Profit 0 the short term this has definitely cut Dividends 2,165 0 Custom paint: Cost and Price of Product The changes in production costs our profit. All of our remaining profit Reinvested profit 0 2,448.22 40€ Table 4: Profit and Loss Account Original box (figure 12) were due to newerwill be reinvested into Festera LLC. ImprovedFestera box MagnaFestera Minima 8. CHALLENGES

The student company experience taught experience that will be useful in business Problem Period Solution Lessons learned Do not let pessimists us that you can learn equally from and in life. Lack of belief Sept - Continuing until the viable discourage you. If you want in our product achievements as you can from difficulties. Oct product was ready to achieve anything, you and us Plan B have to keep going. Not enough No need to know Scepticism We needed very specific biodegrading Contacting experts and knowledge in Oct - Nov everything ourselves, co- Belief in our product was the biggest substances for the process. Importing the specialists technical fields operation is the key. challenge - our teachers said the it was substance would have been too expensive Finding Sept - It is essential to be thorough impossible to make. It was hard to prove and time-consuming so we had to find a biodegrading Internet research Oct in your research them wrong since we had little knowledge partner from Estonia. The other parts of our substances of biochemistry. Despite their disbelief production are divided into many stages and Product development Sept - Dismantling the problems, Careful but flexible time and our dipping confidence, we started that makes it vulnerable. We learned that we took a lot of Dec allocation of tasks management is important working and testing to achieve our goals. always need an alternative partner in case of time It turned out that solutions can be found some company dropping out of business. A vital supplier

product development Looking for and finding an You always have to have a cut off co- Jan if we engage ourselves with one thing at alternative plan B (or even C) operation a time. Then we clearly understood the Getting Financially Creative Unsolved as we could not value of our team - when one of us lost Money is always a problem. We had to make take patent because of the An innovative product has Our solution is Oct - short life cycle of a student motivation, three others were supporting. special agreements with our partners - to be protected before sales unprotected today company and participation Team building events like swimming paying them after selling the first products. starts. at fairs. Industrial design is together in an icehole were great ways of While we were already making profit, we not enough. motivating each other but also just having still wanted to continue developing our Not a product Dec - Other channels in addition Learn how to negotiate, fun. The hope of changing the world has product and that was absorbing all our for trade fairs today to fairs, learning by doing how to close the deal helped us to stay on track. money. In order to maintain the quality, Highly specialised sales No special sales All members were involved people have to be hired for Dec - we took the risk of cutting expenses in person in the in selling, marketing making contacts with big

saleswork today No Need to Know Everything marketing, but also understood that this is team manager was responsible organisations in Estonia and Although we prepared ourselves for a not a permanent solution. abroad. difficult product development process, it Loan, getting creative, Make the most of the least, Not enough making agreements, it is impossible to make big Oct took us longer than expected - losing the Current Bottlenecks starting capital competitions, investing all business lacking resources, smell, creating the electrical system and We have not managed to solve all the the profit back investment is necessary. Great expenses Marketing is the easiest way proving its safety were not to be achieved problems yet. Our product is not properly Oct - Cheap/free ways of on product for cutting expenses, but it is in one day. The need for professional protected today because we had no today marketing

fiinances development not a long-term solution advice (chemists, biologists, electricians) financial capability to pay for a patent External investors is Further need of Dec - Participation in start-up also turned out irreplaceable. We learned application. Although we have continuously needed for growth and investments today competitions quickly that we can not know all the worked on our selling skills, it would be wise development. specifics in an area as complicated as ours. to hire a professional salesman in the future Reaching the right people was also an to increase our selling numbers. Table 5: Experiences 9. FUTURE

During our student company activities we have constantly kept in mind that we want to continue with our ideas and products. We have also started to compile a new business plan that will help us clarify our goals for the next few years. This plan is by no means complete and will be changed a lot during the coming months. Nevertheless, we believe that a detailed plan will be necessary for acquiring additional finances as well. According to the current sales plan and estimating that we will sell about 200 Festera Magnas and 100 Minimas, our revenue after the first year would be 45,700 EUR of which cost of production is 28,580 EUR. The need of paying VAT is already included in these numbers. Marketing and the first steps in further development would demand about 10,000 EUR. Even when we do not achieve the planned selling numbers, we will reach our break even point within the first year by selling around 150 products. Our short term plans show us going down two distinct roads. First, we are continuing with sales to private homes and will try to expand this to other countries in the near future as well. Secondly, if we manage to develop a larger biobox suitable for companies we are directly stepping into waste disposal. This is a very promising area but surely poses new challenges we are still not aware of. 1 YEAR GOALS Sales Production Marketing Finances Company 200 units sold to • Cooperation with furniture • Cooperation with Green Marine Participating in competitions for start-ups and eco-companies, at least 3 Specialised sales people needed for homes companies. • container version of biobox (garbage contests per year. Not a steady source of income, prize money as a bonus. faster growth. Different payment • start offering Festera bioboxes crusher, over a ton of waste at one time) methods considered (option to integrated kitchens. financed by Green Marine. To continue as a viable company- the need for capital the next year is almost agreements, commissions) • Minimal product development • In case of failure finding alternative 20,000€. Several options: needed. financing channels (incubators, • Loans. Hard to get from banks. State agency Kredex offers loan guarantees accelerators) for expanding companies. Enterprise Estonia. A government agency 100 units sold • Reorganising for mass • Cooperation with a start-up Click and offering financial aid of up to 15,000€ for starting companies. Our profile Affected more than 3,000 citizens to schools, production. Cuts costs for a Grow and other companies. promoting fits their priorities. recycling habits and created a businesses single biobox. ecological thinking. • Enterprise Estonia funds development of design solutions. strong client base that spreads our • Continuous work on design; • Joint marketing campaigns. Our values • Business incubators and accelerators. Connect new ideas with specialists, green ideas like fire. attracting lifestyle oriented and products complement each other. an invaluable tool for networking and investors. First steps have been people taken. • Angel investors - hard to obtain their trust. More realistic to find them Patent for new product meant Competitions for start-ups and eco- through accelerators and incubators. for large businesses. companies, a great marketing tool Additionally all of our profit will be reinvested into our LLC. 3 year goals • 5,000 products Accelerating production, • Expanding to Germany and Scandinavia • Additional personnel (salesmen, product development) • Affected more than 60,000 sold to homes widening manufacturing to (countries with larger incomes and • Fundings for expanding and export. The need for funding considerably citizens recycling habits either and businesses. more productive premises. eco-attitude), ca 20 million people with higher for export than expanding on home market. directly or indirectly • Festera • Different high-design ecological thinking[9]. Reaching 1 percent • E-sales on some of the markets, physical presence on others. bioboxes on bioboxes for lifestyle focused - a huge market. all Tallink ships, upper-middle-class customers. • Other European markets through e-sales. potentially on • Model range: still very • Attending large foreign trade fairs and other shipping compact models, also new exhibitions companies. designs taking biobox into the • Enterprise Estonia funds participation of centre of attention in interior. young companies with export goals.

Table 6: Goals 10. ADDITIONAL INFORMATION

Acknowledgements We would like to give our thanks to many supportive people who have encouraged us throughout the year:

Advisor Johannes Madis Aasmäe Tallinn Central Station’s Mentor Juta Kuhlberg handicraft market Supporter Janeli Virnas

Advisor Jürgen Jürgenson councelling Our teacher Ülle Seevri selling channels

Hugo Treffner Gymnasium 2 chemistry teachers University of Tartu IdeaLab 3 biology teachers 2 scientists Kevin Reisenbuk, Joonatan Oras, Kris-Robin Sirge, Sandra Võsaste JA Estonia bacteria ss sine Bu References n io t electricity u [1] http://www.wwf.eu/?229870/EU-continues-to-run-an-ecological-deficit-says-new-Living-Planet-Report l

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https://watchmywaste.com.au/food-waste-greenhouse-gas-calculator/ 3 physics teachers S

https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

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[4] https://climate.nasa.gov/evidence/ S [5] https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator 4 electricians [6] Wright, L.; Kemp, S.; Williams, I. (2011). “’Carbon footprinting: towards a universally accepted definition”. Carbon bacteria Management. 2 (1): 61–72

[7] http://ec.europa.eu/eurostat/statistics-explained/index.php/Waste_statistics suppliers [8] http://compost.css.cornell.edu/microorg.html [9] https://www.ecowatch.com/top-10-greenest-countries-in-the-world-1881962985.html

Festinator - Festera’s fun and flexible app to calculate your ecological footprint - PLASTIC - 1 + PAPER - BELGIUM HOW YES WHERE MANY + 2 ARE YOU - BIOWASTE YOU CAN DECREASE START DO + LATVIA MEMBERS SORTING YOUR CARBON FOOTPRINT YOU LIVE? IN YOUR - 3 TRASH? - GLASS - SPAIN BY ... FAMILY - 4 NO

Festera comes from two words in Latin - festinate meaning quick and terra meaning land. Figure 13: Partners Facebook: Festera Instagram: festeraofficial Homepage: www.festera.eu Email: [email protected] Phone: +372 5611 0201