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Marks web based startup venture

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  1. 1. Blue Ocean confidential and proprietary n Move A Blue Ocean Enterprises Company Online Projects Move Faster.
  2. 2. <ul><li>Loss of employer/employee loyalty </li></ul><ul><li>Shift towards part time work over full time </li></ul><ul><li>Huge shift toward outsourcing and labor arbitrage on a global scale </li></ul><ul><li>Use of contract/contingent labor in many industries: </li></ul>Blue Ocean confidential and proprietary <ul><ul><li>Construction </li></ul></ul><ul><ul><li>Field support </li></ul></ul><ul><ul><li>Web design </li></ul></ul><ul><ul><li>Marketing services </li></ul></ul><ul><ul><li>Film making </li></ul></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Legal/medical/dental/health intervention </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Staff augmentation </li></ul></ul><ul><ul><li>Accounting </li></ul></ul>
  3. 3. Executive summary <ul><li> is </li></ul><ul><ul><li>a website for outsourcing services and projects using project management techniques and disciplines. Beta site is 80% complete </li></ul></ul><ul><ul><li>based in Evanston, started by a Northwestern lecturer and some students from UofC. $20K of bootstrap capital has been spent to date </li></ul></ul><ul><li>A freelance version of the site can be launched for $500K </li></ul><ul><li>An enterprise version will require more capital and resources, to achieve breakeven will require $2.8Million </li></ul><ul><li>The business plan shows how the company can grow to $300 Million in sales by 2015 </li></ul>
  4. 4. <ul><li>Global labor arbitrage is an economic phenomenon where, as a result of the removal of or disintegration of barriers to international trade, jobs move to nations where labor is inexpensive. (Wikipedia, 2007) </li></ul>Blue Ocean confidential and proprietary
  5. 5. <ul><li>90% of all U.S. businesses now outsource some work. </li></ul><ul><li>Employers of all sizes have always relied on outside workers as demand picks up following a recession. </li></ul><ul><li>The reason: They face the same relentless pressure to cut prices as their bigger brethren. </li></ul><ul><li>&quot;This is more than a temporary phenomenon&quot; </li></ul><ul><li>– Griffin, Kubik, Stephens & Thompson. </li></ul>Blue Ocean confidential and proprietary Reference: Business Week article March 11, 2004
  6. 6. <ul><li>Will the large industrial corporation dominate the twenty-first century as it did the twentieth? Maybe not. Business will be carried out autonomously by independent contractors connected through personal computers and electronic networks. </li></ul><ul><li>These electronically connected freelancers -- e-lancers -- would join together into fluid and temporary networks to produce and sell goods and services. When the job is done -- after a day, a month, a year -- the network would dissolve and its members would again become independent agents. </li></ul>Blue Ocean confidential and proprietary
  7. 7. <ul><li>There is a problem in industry today. There is no environment for sourcing, implementing and managing complex new product or new business development projects </li></ul><ul><ul><li>Several websites try, but they either are scaled to the very simple projects or they deal with project scheduling and management as an abstraction and don’t deal with project contracting, sourcing of resources or payments </li></ul></ul><ul><ul><li>Project planning sites don’t help you obtain resources for your project while project sourcing sites don’t help you manage or plan your project </li></ul></ul>Blue Ocean confidential and proprietary
  8. 8. Blue Ocean confidential and proprietary Growth averages 29% per year on a compound basis
  9. 9. <ul><li>A web platform for global sourcing and management: </li></ul><ul><li>NMOVE.COM will use the latest Web 2.0 technologies to connect Managers, Professionals, and Workers Abroad </li></ul><ul><li>We are a Community of businesses as well as a Toolset for Managers </li></ul>Blue Ocean confidential and proprietary
  10. 10. <ul><li>E-Lance -A global freelance marketplace concentrating on low-budget software and web design projects </li></ul><ul><li>Base-camp . A task-oriented collaboration website for project managers similar to Yahoo-groups and Google-groups </li></ul><ul><li>Linked-in -A Viral Professional Networking website with your Online Contact Network, without sourcing or project tools </li></ul>Blue Ocean confidential and proprietary
  11. 11. <ul><li>Freelance -A less powerful version of Elance based in Europe and publicly traded </li></ul><ul><li>EProject -Deals with projects as abstractions. Similar to MS Project, it merely schedules and resource levels projects. Much more geared for the enterprise project manager </li></ul><ul><li>Attask -A better version of EProject that includes portfolio management. </li></ul><ul><li>Microsoft Project A project scheduling tool, now being applied at an enterprise level through the Project server application </li></ul>Blue Ocean confidential and proprietary
  12. 12. <ul><li>Proposed solution </li></ul><ul><ul><li>Teambuilding and Collaborating </li></ul></ul><ul><ul><li>Project Bidding and Contracting </li></ul></ul><ul><ul><li>Online Payments and Accounting </li></ul></ul><ul><ul><li>Real-Time Community </li></ul></ul>Blue Ocean confidential and proprietary E-Lance Base-camp Linked in E-Project Closest competitor
  13. 13. <ul><ul><li>Teambuilder </li></ul></ul><ul><ul><li>Creates and builds teams from a worldwide pool of resources </li></ul></ul><ul><ul><li>Each team member has a rating based on prior experiences </li></ul></ul><ul><ul><li>Cash Flow and Payments </li></ul></ul><ul><ul><li>Manage your Project budget </li></ul></ul><ul><ul><li>Perform International Payments </li></ul></ul><ul><ul><li>Team collaborator </li></ul></ul><ul><ul><li>Share Documents, Messages, Calendars, Events </li></ul></ul><ul><ul><li>Track Member Tasks, Progress, and Activity </li></ul></ul>Blue Ocean confidential and proprietary
  14. 14. <ul><li>Manage contracts </li></ul><ul><ul><li>Manage scope, deliverables, costs and timeframes </li></ul></ul><ul><ul><li>Ability to include terms and conditions to each transaction </li></ul></ul><ul><ul><li>Attach payment milestones to each transaction </li></ul></ul><ul><ul><li>Manage changes to contract in real time </li></ul></ul><ul><ul><li>Attach terms and conditions to each transaction </li></ul></ul>Blue Ocean confidential and proprietary
  15. 15. <ul><li>Viral Marketing (see next slide) </li></ul><ul><li>Seminars and Conferences </li></ul><ul><li>Google Adwords Campaigns </li></ul><ul><ul><li>Keywords: Project Management, Freelancers </li></ul></ul><ul><li>Affiliate Relationships with Large Hosting and Web Design Companies </li></ul>Blue Ocean confidential and proprietary
  16. 16. Blue Ocean confidential and proprietary Every Connection Is a Node of New Connections
  17. 17. <ul><li>Small Software developers </li></ul><ul><li>Web site design and hosting companies </li></ul><ul><li>New product design </li></ul><ul><li>Business applications </li></ul><ul><ul><li>Training projects </li></ul></ul><ul><ul><li>Process design/redesign </li></ul></ul><ul><ul><li>Workflow automation </li></ul></ul><ul><ul><li>Business or market planning </li></ul></ul><ul><ul><li>Accounting or tax preparation </li></ul></ul><ul><li>Legal services </li></ul><ul><ul><li>Trademark or patent searches </li></ul></ul><ul><ul><li>Business incorporation </li></ul></ul>Blue Ocean confidential and proprietary
  18. 18. <ul><li>Independent user (our initial focus) </li></ul><ul><ul><li>Wants an easy to use and popular site that generates traffic but also is packed with functions that help them manage their projects and clients </li></ul></ul><ul><li>Enterprise user </li></ul><ul><ul><li>Wants to implement their processes and systems in a consistent and easy to use tool </li></ul></ul><ul><ul><li>Willing to pay a license fee but will demand custom features and ability to host their own site </li></ul></ul>Blue Ocean confidential and proprietary
  19. 19. <ul><li>Viral Marketing (see next slide) </li></ul><ul><li>Seminars and Conferences </li></ul><ul><li>Google Adwords Campaigns </li></ul><ul><ul><li>Keywords: Project Management, Freelancers </li></ul></ul><ul><li>Affiliate Relationships with Large Hosting and Web Design Companies </li></ul>Blue Ocean confidential and proprietary
  20. 20. Blue Ocean confidential and proprietary Every Connection Is a Node of New Connections
  21. 21. <ul><li>Buyers are typically not charged to post a project </li></ul><ul><ul><li>This will encourage a Large User Base of Service Buyers </li></ul></ul><ul><li>Managers with Multiple Projects, Large Teams, or Many Files are charged a subscription fee between $25 per month and $100 per month </li></ul><ul><li>Sellers are charged to respond to a bid and are charged a subscription fee to post their business on the site </li></ul><ul><ul><li>$100-$450/year, or $2 per bid response </li></ul></ul><ul><li>Wire transfers/escrow are an additional source of revenue ($40 per wire transfer) </li></ul>Blue Ocean confidential and proprietary
  22. 22. <ul><li>Approximately 34,000 registered sellers </li></ul><ul><li>Generates approximately $7.4Million in annual revenue on this alone based on seller’s fees </li></ul><ul><li>Approximately 16,000 projects generate approximately $4.8 Million in buyer based revenue </li></ul><ul><li>Does not include enterprise user revenue (200,000 registered enterprise users) </li></ul>Blue Ocean confidential and proprietary
  23. 23. <ul><li>Based in Europe-publicly traded. Established revenue operations in 2004 </li></ul><ul><li>Market capitalization of 11 Million Euros </li></ul><ul><li>Annual revenue in 2006 of 31 Million Euros </li></ul><ul><li>Generally considered a regional player </li></ul>Blue Ocean confidential and proprietary
  24. 24. <ul><li>Growth in user base assumed to pattern after e-lance early years </li></ul><ul><ul><li>5000 paying users and 110 projects in system after year 1 of revenue ops </li></ul></ul><ul><li>Revenue per user is assumed to be $40/month and $300/project in transaction fees </li></ul><ul><li>Costs based on a 25 person team consisting of </li></ul><ul><ul><li>In-house product development team of 9 specialists (security, architecture, testing and debug) </li></ul></ul><ul><ul><li>In-house marketing team of 3 </li></ul></ul><ul><ul><li>Sales team of 5 </li></ul></ul><ul><ul><li>Customer support team of 4 </li></ul></ul><ul><ul><li>Part time accounting, full time bookkeeping and A/R </li></ul></ul><ul><ul><li>One IT support </li></ul></ul><ul><ul><li>Full time COO and CEO </li></ul></ul>Blue Ocean confidential and proprietary
  25. 25. Blue Ocean confidential and proprietary Assumes fee paying customers in month 4 of operations Cashflow positive is achieved in 12 months
  26. 26. Blue Ocean confidential and proprietary Assumes fee paying customers in month 8 of operations Achieves positive cash flow in 17 months
  27. 27. Blue Ocean confidential and proprietary Ending market share=23% after year 7, based on elance growth rates
  28. 28. <ul><li>Short-Term Development </li></ul><ul><ul><li>Combine US Day and India Day for 24-hour development cycle </li></ul></ul><ul><ul><li>Using 2007-Standard Open Source Languages: PHP 5, MySQL 5 </li></ul></ul><ul><ul><li>Software-as-Service Philosophy </li></ul></ul><ul><li>Long-Term Development </li></ul><ul><ul><li>In-House US Managers, 20+ Programmers Abroad </li></ul></ul><ul><ul><li>LAMP with C# architecture </li></ul></ul><ul><li>Why Open Source LAMP? </li></ul><ul><ul><li>We want to encourage Innovation from our Users </li></ul></ul><ul><ul><li>Users can add their own Tools (Widgets) with Free Languages </li></ul></ul>Blue Ocean confidential and proprietary
  29. 29. <ul><li>Three patentable ideas at this point: </li></ul>Blue Ocean confidential and proprietary <ul><li>An Online Contracting System leveraging Feedback Scores </li></ul><ul><li>2. Online Contracts that are disassembled into </li></ul><ul><li>a series of Tasks , Scheduled Events, and Payment Milestones </li></ul><ul><li>3. Online Contract Arbitration, where disputed contracts are </li></ul><ul><li>reviewed by an 3rd party arbitrator or a board of general users. </li></ul><ul><li>Pursuing patent search and initial filing with DLA Piper offices in Chicago </li></ul>
  30. 30. <ul><li>Incorporated as a C-Corp (Blue Ocean enterprises) </li></ul><ul><li>Offices located at Evanston incubator (820 Davis St) </li></ul><ul><li>Invested $20K in bootstrap (personal) funds </li></ul><ul><ul><li>Allocated almost exclusively to India based development of elaborate prototype </li></ul></ul><ul><ul><li>Staff of 5 working for equity and deferred comp at this point </li></ul></ul><ul><li>Achieved 70% completion of the implementation of the prototype site </li></ul><ul><li>Hired lawyer to insure that IP is protected </li></ul>Blue Ocean confidential and proprietary
  31. 31. <ul><li>Mark Werwath (NU lecturer, PhD, engineering background, 25 years industry experience and teaching/consulting experience. Source of funds to date and CEO of Blue Ocean) </li></ul><ul><li>Geoff Domoracki (UofC graduate, experienced web based business builder, established 2 other web based businesses) </li></ul><ul><li>Marc Weinstein (former Bell labs engineering manager and outsourcing program management expert from Motorola) </li></ul><ul><li>Mark Stoehr (UofC student, web marketing expert) </li></ul><ul><li>Regina Nisengolts (software usability and user interface design expert) </li></ul>Blue Ocean confidential and proprietary