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Title Georgia AAA Home Repair: Home Services Industry Landscape Kristyn Kadala Lance Brockway Control Logistic Tower A 4th party logistic startup Overview . Control Tower Logistics: Expedia for business shipments – A gateway for businesses to overview, book and track their shipments with multiple Third-Party-Logistic (3PL) providers Total available market: $4.8 trillion . Current status: – Early stage pre-launch Served available market: $17.4 billion Small-medium enterprises (SME) North America, Sea freight, Import/Export Problem: High costs and complex operations . 3PL: 3rd party Logistics such as DHL, FEDEX, DSV, etc. 3PL Selection Price Complexity One 3PL relation Multiple 3PLs . Price: • Buyers’ who rely on one 3PL is paying high prices . Complexity: • Buyers prefer not to use multiple systems. Solution: Save money and reduce complexity! 3PL Selection Price Complexity One 3PL relation Multiple 3PLs Our solution . Price: • Compare price and services from multiple 3PLs. Save Money! Our startup . Complexity: • One gateway to overview, book and track shipments from multiple 3PLs Reduce complexity! Our Secret Sauce Engineering, IT and Business Dev. 7 year logistic backgrounds experience Network Save Money! Our startup Reduce complexity! Proof of concept (prototype) Previous successful entrepreneurships: Proper solution Freightlane and Astada for market need 2013: Offered $130,000 investment 2014: Sold to Transporteca (competing company). Served Available Market (SAM) $4.8 Total available trillion market (TAM) Global US Small/Medium Large Total available market: business business $4.8 trillion Air Ground Sea Served available market: $17.4 billion Served available market (SAM) $17.4 billion Competitive Environment Type of Business Company Advantages Disadvantages 3PL providers Good customer Complex market Flexport, DHL, (Non-competing relations One 3PL is not price K+N company) Good carrier relations competitive Easy to use Online spot freight Searates, Tiny volume Instant spot rates (Light online Transporteca (Our Scarce frequency (Relatively cost services) former company) Inadequate service efficient) Online logistics Freightos.com, Inadequate service platforms Easy to use Freightcenter, Small volume (medium online Cost efficient Freightquote No process optimizations services) easy to use very cost efficient Our high volume startup adequate service process optimization Business Model Our simple business model: We make money as the middle man in a game of big volume. Key Partners Key Value Customer Customer Activities Propositions Relationship Segments Negotiate and aggregate all 3PL 3PL companies companies Interact with Relations: Logistic multiple 3PL Sales U.S. consultants in one Technical SME Insurance Key system. Sea companies Channels Resources Simple Furniture Investors Money Electronics Accelerators saver Machinery Attorneys Developers Online Clothing Sales In person Auto parts Logistic handling Events Referral Cost Structure Revenue Streams Salaries Negotiation leverage IT equipment Subscription Location Data Prototype applied by 20 companies Price for priority 1 Prioritzation of Route In USD 1,000 3PL companies . Next step improvements: – Front-end: Making the website more user friendly – Back-end: Automating interactions with 3PL companies.. Road map Scaling. Intensifying sales by scaling salesforce Q8 Q7 Break-Even-Point (Profitable) Management of shipments Q6 valued $1 million/month Q5 Focus on automation Q4 First system iteration Q3 goes live Q2 Seed-funding Q1 Q0: Prototype is in use by 20 companies. Financial Plan Acc. Monthly Acc. Monthly Revenue/Expenses (24mo) Revenue/Expenses (5yrs) 8,000,000 140,000,000 Break-Even-Point 120,000,000 ~ $4M GM/month 6,000,000 100,000,000 4,000,000 80,000,000 ~ $2M Profit/month 60,000,000 2,000,000 40,000,000 0 20,000,000 1 2 3 4 5 6 7 8 9 101112131415161718192021222324 -2,000,000 0 -20,000,000 -4,000,000 -40,000,000 -6,000,000 -60,000,000 Gross Margin Expenses Net income 5th year: Scale to global markets Team: Tech. Focused Entrepreneurs Money Sought • Seed Investment of USD 500,000 – Funds to cover required recruitments – Strengthen our developer and sales team. – To cover expenses until positive cash-flow in month 14 – Expected Break-Even-Point in month 18 Cost distribution 2% Co-founder salaries Developer saleries 13% 18% Logistics Clerks saleries Sales personal saleries Designer/UX saleries Accounting Marketing 4% 46% Other expences related to co- founders.
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