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Making life easier. Finding things to BUY is HARD!. The web has grown up. Big business and amalgamators dominate. Massive amounts of irrelevant choices. Daunting – too many places to look. Time-consuming. Frustrating – failed enquiries. Incomplete – No humans, too much automation. - PowerPoint PPT Presentation
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Making life easier
Finding things to BUY is HARD!
Found
•The web has grown up.•Big business and amalgamators dominate.•Massive amounts of irrelevant choices.
•Daunting – too many places to look.
o Time-consuming. o Frustrating – failed enquiries.
•Incomplete –
o No humans, too much automation.o Some sellers can’t afford to be found.o Some put off completely.
Missed
Total Market
Advertise what YOU’RE BUYING.Be FOUND by all the market
1. Buyers advertise what they want to buy. 2. We Match to sellers stock/profile using algorithms, & inform matching sellers.3. Buyers choose from their responses – no obligation.
•Buyers get more real choice. Greater reach.•Very little effort, making the market work. •Process is controlled & secure.
Web site
Total Market
Approach
Free.
Source.
• Pay Per Click- for matches.• Partnerships for traffic – in talks now.• Social media & Apps.
Where we fit.
• They tell us what they want to buy.• Additional service - works differently• They may search too.
UK Car Buyer market
• Total buyers. 8m p.a. (2m new)• FY breakeven. 55,000 p.a.
Buyers
11
22
33
44
TRIAL RESULTS
Car buyers 18,000
Funnel conversion 6%
Buyer Recruitment cost £5
47% Female, 20% New Cars.
• Results robust over all 10 months.• Six times better than expected.• Reflects popularity of service.
£30 subscription per month.
• Low churn.• Low cost barrier for more buyer choice.• Barrier to emulators.
Recruitment.
• Direct.• Telesales.
Where we fit.
• Current marketing – for inbound sales.• When no inbound calls – FindsYou for
outbound sales.
The seller market.
• Total dealers. 15,000• Breakeven.
4,000
Sellers - Dealers
11
22
33
44
TRIAL RESULTS
Dealers recruited 3,000 on a free basis.
Dealers paying 1,400
or agreeing to pay in 6 weeks at end of trial.
“Using FindsYou is a no brainer”
Allen Scott – Marketing Director Inchcape
Phase 2: UK Cars – Key Metrics
Gross Revenue based on metrics for buyers needed for average dealer subscription.
FindsYou Profitability
•75% gross margin, and will improve.•6 times better than expected.
Car Dealers Costs
•Spend average £2,000 p.m on Classifieds.•Lead cost a fraction of lead gen services.
£5 Cost of Acquiring a Buyer.Proven, robust & will trend downwards.
£20 Gross Revenue
Proven demand, Will trend upwards.
£30
Monthly Subscription Cost.
£1 - £2 Cost per Lead.ROI is off the scale..
Competition
We are a new and unique activity for buyers and sellers.
Phase 2 UK Cars: ForecastUsing only proven metrics
£000 Year One Year Two Year Three
Total Revenues 710 2,058 2,978
Total Costs 911 1,398 1,622
EBITDA -201 660 1,355
•Dealers join slower than expected.
•Dealers join quicker than expected.•Private sellers.•Site performance increases.•Alliance deals and natural traffic.
Downside risk.
Upside Potential.
Phase 2: Next Steps
Other areas in car sector:
EuropeAmericaAsiaMid EastRussia
Other areas in car sector:
EuropeAmericaAsiaMid EastRussia
New SectorsNew Sectors
New sectors say:
Accommodation.Domestic propertyCommercial propertyVenue Hire.
New sectors say:
Accommodation.Domestic propertyCommercial propertyVenue Hire.
Non UK CarsNon UK Cars
Licensing/Franchising Health
OthersJobs Tradesmen
Social CausesSocial
Causes
OtherOpportunities
OtherOpportunities
Related UK Sectors:
After salesClassicsCommercialsMotorbikesTrade Only.
Related UK Sectors:
After salesClassicsCommercialsMotorbikesTrade Only.
Hyper LocalUK Cars UK Cars
Students Others
PartnershipsPartnerships
Flex – Private Sellers and Dealers
15,000 per month is 6% of private sellers p.a.12,200 dealers is 80% of total dealers.Ignores all other variables.
Year 3 EBITDA
Private sellers per month
Dealers
Current Web Sites
UK Accommodation
UK cars
Team
Guy Walker – CEOPrice Waterhouse, Yule Catto plc – Audit and Corp Finance.
CFO/COO Marketing & Media businesses. Turnarounds and building by acquisition and organic growth.
CFO/COO Initiative Media Inc. Re-engineer for profits - $125m p.a. positive swing.
Matt Seaman – COODixons Retail, BSkyB, ITV. Sales and management.
Director Virgin, Freeview; Management of business units.COO Top Up. Exec team that made £60m+ for backers.
Nick O’Connor –Sales/Promotion/DigitalTeleWest, ITV Digital, Head of Trade marketing. Gained 70% market share.
MD Kizoom. Managed for growth and exit.Director Caboodle – All marketing and development.
Jim Lee – Sales & Motors ManagementSales within and media sales to the motor trade.
Founder member Motors.co.uk – classified ad company.Publisher WhatCar.Media Sales Haymarket Motors Division.
Funding - Use of Funds
Seeking £300k out of £500k EIS Pre-approved. Lead investor in place. £200k Committed.
Use of Funds Sales to Dealers 45%Sales to Buyers 30%Overhead and Tech 25%
Exit Trade sale in 3-5 years. To struggling media business with weak digital model. Many such businesses exist.
Valuation on Exit 10 X EBITDA should be easily achievable.
1. Very popular & proven model for buyers and sellers.– Makes life easier – people use things like this.– How the web should work
2. First mover, ready to move. – Unique position in all markets.– Immune from giants – barriers against emulators.
3. High potential returns.– Scalable and Applies to many markets and geographies.– Network effect. Ideal for mobile applications.– Profitable model.
Where what you’re looking for
