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PeopleTXT, LLC PeopleTXT, LLC Getting Everyone In The Know Management Team: Chris Belle, Kevin Clarke, Ryan Courech, David Morris, Sandra Timms, and Frank Trevino

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  • 1. PeopleTXT, LLC Getting Everyone In The Know Management Team: Chris Belle, Kevin Clarke, Ryan Courech, David Morris, Sandra Timms, and Frank Trevino

2. What do we do?

  • Help businesses and organizations contact customers in an easy, immediate and cost-effective way through text messaging.

3. Why is this a Great Opportunity?

  • 233 million cellular phones in the US
  • 90% capable of sending and receiving text messages
  • In the final six months of 2006 94 billion messages were sent
  • 89% of the time the messages are read
  • $50 billion industry

4. The Opportunity

  • Online Text Message Management System
    • Web based
    • Cell phone lists
    • Messages
      • Timed dispersal of messages
      • Short in length
  • Specialized site for each market
    • Bars/night clubs
    • Universities and schools
    • Emergency Messaging System

5. Our Value

  • PeopleTXT increases customer contact
    • Cheaply
    • Quickly
    • Proven Results
  • Help prevent slow nights and sales
  • Low Cost $0.10 per message
    • Reach 1000 people for $100
  • Manage distribution of advertisements and promotions to a captive audience

6. Market Offering

  • Current Offerings
    • Enterprise level products
    • Bulk messages
    • Pay up-front
    • Websites not user friendly
  • Why PeopleTXT?
    • Personalized account managers
    • Pay as you go
    • Easy to use website
    • Advertising on our site
    • Turnkey

7. Customer Analysis

  • Bars
    • Target those who sign up on website
    • Weekday lull in patrons
  • Schools
    • Clubs and organizations
    • Emergency information distribution
  • Municipalities
    • Emergency Management

8. Sign-up Cycle

  • Reaching Clients
    • Trade magazines
    • Referral fees
    • Internet advertising
    • Demonstrations
    • Introductory offers
  • Collecting Numbers
    • At the door
    • The bar website
    • Our website
  • Customers
    • Bar owner/manager
    • Promoters
    • Event planners
    • Bar patrons

9. Customer Satisfaction

  • Our Customer
    • 24 hour technical service
    • Websites
    • Telephone
    • Site visits
    • Email
  • Their Customer
    • Industry standards
    • Customers can opt out of list
    • Drop bars not following best practices

10. Our Legal Structure

  • Start as
  • Multi Owner LLC
  • In 2010
  • Transfer to
  • S-Corp Tax Structure

Multi Owner LLC file a partnership return - IRS Form 1065 with members being given schedule K-1 Can check the box for Taxation as a S-Corp or C-Corp*Retained Earning are taxed at the Corporate bracket *Retained Earnings are taxed at owners tax bracket Single member LLCs file as sole proprietor IRS Form 1040 - Schedule C Taxation May be subject to state requirements.An event such as death or withdrawal of a member may trigger dissolution Existence Owners has flexibility Managed and Member Managed LLC Structure Transfer of membership interest may be outlined in the operating agreement Transfer of Ownership of Ownership Ownership is based on membership Interest.Evidence One or many members are not required to be citizens or residents of USMembers can be corporations, LLCs or Partnerships Ownership Not subject to formalities. Does not have to hold annual meetings Formalities Limited Liability Company 11. Organizational Structure TBD Sales Manager Hire Oct. 2008 Contacted Sales Force 100% Commission Hire Jan. 2009 TBD Tech Officer Hire Jan. 2010 David Morris COO Chris Belle CEO 12. Sales Force

  • 100% commission contract labor
  • Ability to work from home
  • 20% for life based on client retention
  • 90 days probationary period

13. Risks

  • Client abuse
  • Underage users
  • Bad press
  • Unsolicited messages
  • Cell phone e-mail
  • Disruptive technology

14. Timeline

  • Launch January 2008 Orlando, FL
    • Add Tampa and Northern Florida Jul-08
    • Expand to Southeast Jan-09
    • Go National July-09

15. Tipping Point

  • Breakeven
    • $65.1K/Mo
    • Projected April 2010
  • Burn Rate
    • 2008 Loss of $167K
    • 2009 Loss of $141K
    • 2010 Profitable!!!
      • $75K Projected

16. Income Statement 17. Funding Required

  • Seeking initial investment of $1M
  • Funds used for
    • Salaries 57%
    • Website 1%
    • Marketing Expense 1%
    • Travel 3%
    • Bulk Text Purchases 20%
    • Working Capital 18%

18. Exit Strategy

  • Look to Sell in 2012
  • EBITDA Projected to be $3.5M
    • 3X Multiplier = $10.5M Sale Price
    • 5x Multiplier = $17.5M Sale Price
  • Margins exceed 36%

19. Questions? 20. Balance Sheet 21. Growth Chart