Truckbay, LLC, Limited Liability Company, was created under Nebraska law by Jim Bell, John Bell, in October 2002. Truckbay.com’s new business model is to be a light-equipment listing service on eBay Motors, and then build a network of linked websites that will increase sales and exposure. Truckbay.com’s ultimate goal is to be the most prominent classified listing site in the global light-equipment market. The best way to achieve this goal is to provide the most views per listing of any service.
Truckbay was founded in October 2002. Truckbay.com went live in February 2003, after a five-month period of software development. Truckbay.com’s core business model currently relies on recurring monthly revenue, which is generated from a membership charge for light duty truck dealers. This membership fee allows you to access an exclusive e community of light duty truck dealers who use this industry-specific program to buy and sell wholesale online equipment.
Truckbay, Mr. Y. and Mr. Z. discussed a merger proposal in September 2004. This was done to discuss the benefits Truckbay would derive from a partnership with them. Company X was established by Mr. Y and Mr. Z in the early 2000s. Company X became the most successful listing service for eBay Motors, capturing over 21% of their total automotive listings in their brief history. Company X agreed to sell their company to eBay Corporation in January 2003 returning over 800% return to their original investors. Their success and expertise in eBay Motors and Search Engine technology are ideal compliments as Truckbay turns its focus to this similar business model. Truckbay is offering 15% ownership to Company X for the contribution of capital, business, and technical consulting.
Truckbay will sell our online classified ads solutions to four key markets:
- Light Truck Dealers
- Fleets
- Financial Institutions
- Individual Owners
Our most important customers include Dealer Principals and Sales Directors within 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. They are open for new sources of lead generation, but are focused on a quick return on their investment. Truckbay will immediately generate leads and sales through the use of eBay Motors’#8217’s massive marketplace and other multichannel linked websites.
Financial Considerations
After-tax profits in 2007 will come from the customized marketing strategy and market research described in this plan. Our estimates are that revenues will represent a 20% market share in the eBay Motors light-truck listing market by 2008. We accept pre-paid listings and operate entirely on a cash basis.
Truckbay is seeking $475,000 of venture capital in order to own 19% of the company. Based on projections from Company X’s past, we expect an IRR of 109% and an investor’s end valuation of $1,043,100 for 2007. Truckbay is expected to be sold within three to five years to a related company (such like ebay).
1.1 Objectives
Truckbay’s primary objective is to offer a top-quality online classified advertising solution for the global heavy truck and machinery market. These are our key goals:
- You can leverage eBay Motor’#8217s marketplace to get rapid market exposure for this niche.
- Make use of cutting-edge Search Engine technology in order to increase viewership
- For long term loyalty, provide an affordable and turn-key suite of eDealer online services.
1.2 Mission
Truckbay is an enterprise that generates sales and profits. Truckbay exists to serve its customers, as it is a service-based business.
- The company is the leading online advertising platform for the global heavy equipment and truck market.
- The company will seek out industry leaders and experts to partner with them.
- We will provide a service that is valuable and uses the most current technological advances for our customers.
- Our team is made up of highly-motivated, results-oriented individuals who have been trained to be the best.
- Our
The workplace will provide a place for team members to prosper and grow in a dignified, enjoyable, and rewarding environment.
1.3 Keys to Success
Our main keys to success are:
- Traffic can be generated by key Search Engine technology
- eBay Motors: Traffic Boosting
- Positive team work environment
- Team of experienced managers
We will take steps to reduce risk factors such as:
- Low overhead structure
- Hire a draw team, rather than a commissioned sales team
- Utilizing successful practices from a proven business model