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. The new fundamental business model for Truckbay.com is to become a light equipment listing service on eBay Motors and build a comprehensive network of linked websites that deliver increased sales and exposure. The ultimate goal is to build Truckbay.com into the leading classified listing service 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. After an initial five-month software development period, Truckbay.com launched in February 2003. Currently, the core business model consists of recurring monthly revenue from a membership fee charged to light duty truck dealers. This membership fee allows access to a private e-community of like dealers who utilize this industry-specific software to buy and sell wholesale equipment online.
In September, 2004, a proposed merger was discussed between Truckbay, Mr. Y and Mr. Z. The purpose of this discussion was to analyze the benefits Truckbay would receive from a consulting arrangement with them. Mr. Y and Mr. Z founded Company X in early 2000. 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. Company X has agreed to contribute capital, business and technical consulting, along with a venture capital pool, in exchange for 15% ownership in Truckbay.
Truckbay will focus on four key markets to sell our online classified advertising solutions to:
- Light Truck Dealers
- Financial Institutions
- Individual Owners
Our most important group of customers are Dealer Principals and Sales Managers within the Light Truck organizations. In most cases, the Sales Manager is charged with distributing his substantial advertising budget among the most effective sources of lead generation. 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’ massive marketplace and other multi-channel linked websites.
The marketing research and tailored marketing strategy described in this business plan will result in after-tax profits of approximately $549,000 by 2007. We estimate that by 2008, revenues will reflect a 20% market share of the eBay Motors light truck listing market. We are operating on a cash basis, accepting pre-paid listings only.
Truckbay is seeking $475,000 in venture capital for 19% equity ownership of the company. 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. Our exit strategy is to sell Truckbay within 3-5 years to a larger related company (such as ebay).
Truckbay’s fundamental objective is to provide a leading, online classified advertising solution that targets the global heavy truck and equipment market. Our key goals include:
- Leverage eBay Motor’s marketplace to gain rapid market exposure in this large niche industry.
- Utilize cutting-edge Search Engine technology to drive viewership.
- Provide an affordable, turn-key eDealer suite of online services to garner long term loyalty.
Truckbay is a commercial enterprise, and as such, exist for the purpose of generating sales & profits for its investors, owners, managers and staff. Because Truckbay is a service business, it also exists to serve its customers.
- The company will provide the best online advertising solution for the global heavy truck and equipment market.
- The company will partner with proven, experienced consultants and industry leaders.
- Our customers will always receive a valuable service that utilizes the latest in technological advances.
- Our team will consist of high-energy, results-oriented people who are trained to be the best.
- Our team will be offered a workplace where they can prosper & grow in a dignified, fun and rewarding manner.
- Our investors will see a lucrative return on their dollars, and will have the opportunity for future growth and prosperity with the company.
1.3 Keys to Success
We believe that our main keys to success include:
- Utilizing key Search Engine technology to drive traffic
- Leveraging eBay Motors to drive traffic
- Positive team workplace environment
- Seasoned management team
We will minimize certain risk factors by:
- Maintaining a low overhead structure
- Hiring a draw, versus commissioned, Sales Team
- Utilizing successful practices from a proven business model