Support American Economy Business Plan - Presentation Transcript
Business Plan--Quick Pitch SupportAmericanEconomy.com
Idea
A website to sell American-made Products.
Motivation
While the government cannot explicitly demand or encourage that its procurements are fulfilled through American-made products out of fear of WTO tariff wars, the public sector and public contractors of government can buy their supplies domestically. This helps American manufacturers keep their workforces.
How it will make money
Commission from sale of products
What would it sell
Any American-made consumer products from pencils to cars
Business supplies. There will be an emphasis initially on signing up manufacturers that sell construction material and equipment (stimulus plan)
Who will supply products
- Any domestic OR foreign manufacturer or distributor can upload their products
- If you are confused, don't see the competitive advantage, read on. two more slides!
Why would they supply products Through Us
- Domestic manufacturers benefit from potential increased sales. We charge them only from 8-20% premium. Also the points system (see later slides) gives them another competitive advantage
- Foreign manufacturers benefit from potential increased sales. We charge them from 10-60%
Who will buy the products
- Individuals, businesses and organizations that need those products and raw material
Why would they buy through us
- Compare American-made brands with foreign alternatives for price, quality, delivery time and total cost of ownership
- After comparing, the buyer chooses to buy an American-made brand, they will get the difference in price between the American-made brand and the median of the foreign alternatives in points.
- Buyers can use points to buy more American-made products
Everybody reading this copying the idea and doing it
Competitive Advantages
We will be dynamically updated
We will have an array of useful products both for individual consumers and businesses
Easy metrics for comparing various brands for domestic and foreign products
Experience with successful startups
Competitive Advantages (Cont.)
Experienced at designing, implementing and managing software development projects
Experienced at managing suppliers and distributors
Keys to success in 60 days
Have product upload interface up in 2 weeks
Beta site up in 4 weeks
Have 100 products up at Beta
Launch in 6 weeks
Funds Needed
Website Creation $25,000
Web Hosting 500
Business Coordinator 7,500
Signup Coordinator 7,500
System/Database Designer 15,000
Web Engineer 15,000
Office Rent 3,000
Computers & Equipment 3,000
Supplies 500
Legal/Admin 3,000
Advertisements 10,000
Total $90,000
Return On Investment
25% equity at the company
Monthly Expenses
Web Hosting $500
Salaries 10,000
Supplies 200
Phone/Fax/Internet 200
Office Rent 3,000
Legal/Admin 500
Advertisements 3,200
Total 17,600
Breaking Even in 60 Days
- Average daily profit of ~$600
- At 15% average commission, translates to $4000 daily revenue
- Encourage minimum spending of $100 by offering double points.
- Need only 40 transactions per day
Q&A
Q. Aren't you giving American manufacturer's an unfair advantage?
A. Yes, however if a non-US made product sells well and has great ratings, the commission the manufacturer/distributor pays will be reduced so the American brands have to stay competitive
Q. How will you verify a manufacturer's products are made in USA?
A. Manually for new companies, established ones based on trust and occasional audit
Q. How about fraudulent companies or knock offs?
A. We collect all payments. companies only get shipping information. (continued...)
Q&A (Cont.)
We release payments at the end of the month. If there are any undelivered products or fraud claims, they will be withheld. violators will be suspended. Moreover non-American based companies need to pay a $10 monthly membership fee.
Q. How easy will it be for companies, their reps and distributors to upload products?
A. Very simple. The system will fill out most of the details and even import from file (from existing online stores)
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