Truckbay, LLC is a Limited Liability Company organized under the laws of Nebraska and established in October 2002 by co-founders Jim Bell and John Bell. Truckbay.com plans to expand its business model and become an eBay Motors-based light equipment listing website. This will allow it to build a large network of linked websites which can help increase sales and exposure. Truckbay.com should be the number one classified listing service for the global light equipment market. It is important to get the most views for each listing.
Truckbay was established in October 2002. After an initial five-month software development period, Truckbay.com launched in February 2003. The core business model of Truckbay.com is currently a recurring monthly income from a member fee that light duty truck dealer pay. This membership fee provides access to an online e-community with like dealers that uses this industry-specific software for buying and selling wholesale equipment online.
In September, 2004, a proposed merger was discussed between Truckbay, Mr. Y and Mr. Z. This discussion was held to evaluate the benefits Truckbay could receive from a contract with them. Company X was founded by Mr. Y, and Mr. Z in 2000. Company X was the most successful eBay Motors listing service, capturing more than 21% of all their automotive listings. Company X decided to sell their company in January 2003 to eBay Corporation, resulting in a return of over 800% for their original investors. Truckbay will be leveraging their expertise in Search Engine technology and eBay Motors to complement this business model. Truckbay will receive 15% of the capital and business consulting contributions from Company X in return for 15% ownership.
Truckbay will target four markets in order to sell its online classified advertising solutions:
- Dealers of light trucks
- Financial Institutions
- Individual owners
Our most important group of customers are Dealer Principals and Sales Managers within the Light Truck organizations. Most cases, the Sales Manager will be responsible for allocating his large advertising budget among the most effective sources to generate leads. While they are open to new sources on the most part, they are looking for immediate return on their investment. Truckbay will generate immediate leads, and sales by leveraging eBay Motors’#8217; huge marketplace and other multichannel linked sites.
This business plan will show you how to market research and create a tailored marketing strategy that will bring in $549,000 in after-tax profits. By 2008, the eBay Motors light truck market will have a market share of 20%. We are operating on a cash basis, accepting pre-paid listings only.
Truckbay is seeking venture capital of $475,000 for 19% ownership. We anticipate an IRR of 109%, with an investor’s ending valuation of $1,043,100 in 2007, based on an earnings-based valuation reflecting projections from a similar period in Company X’s history. Truckbay should be sold within 3 to 5 years to a more related company (such e-bay).
Truckbay’s principal objective is providing a world-class online classified advertisement solution to the heavy truck and equipment markets. Our main goals are:
- Leverage eBay Motor’s marketplace to gain rapid market exposure in this large niche industry.
- Utilize cutting-edge Search Engine technology to drive viewership.
- For long term loyalty, provide an affordable and turn-key suite of eDealer online services.
Truckbay is an enterprise that generates sales and profits. Truckbay, a service business is there to serve customers.
- The company will offer the best online advertising solution to the global heavy truck and machine market.
- The company will be partnering with industry leaders and experienced consultants.
- Our customers will always receive a valuable service that utilizes the latest in technological advances.
- Our team is made up of highly-motivated, results-oriented individuals who have been trained to be the best.
Team will have the opportunity to thrive and grow in a dignified environment.
1.3 Keys To Success
We believe these are our keys to success.
- To drive traffic, use key Search Engine technology
- Use eBay Motors to Drive Traffic
- Positive work environment for teams
- Seasoned management team
Certain risk factors will be minimized by:
- Maintaining a low overhead structure
- It is better to hire a draw than a commissioned Sales Team
- A proven business model that has worked well is a good starting point.