Expanding Interactive Entrepreneurial Platform

Opportunity Snapshot

Investment Opportunity

This is a confidential proposal for the expansion of an existing interactive platform on the Internet aimed at serving entrepreneurs and equipping them to become leaders. Through teaching the principle of re-investing, the platform will enable its members to both expand their network of contacts globally and earn additional funds for their company.

Up to date more than US$5,000 has been already invested to get the platform established and public. We are looking for an investment once-off for a further US$15,000 or US$30,000 to help launch the 2nd and 3rd phases. Based on the network’s monthly growth rate of 1+1*, the company’s EBITDA at the end of the first year is calculated at ~US$210,000. The investor’s personal investment, will yield in the first year EBITDA ~US$37,000, which translate to ~147% ROI (assumed US$15,000 is invested once-off.)

Nowadays there are hundreds of entrepreneurs who are willing to work and provide for their families. But they are lacking, the start-up capital, the necessary training and marketing skills. Thus this company aims at offering an interactive platform aimed at equipping and empowers entrepreneurs globally, through various mediums of training, marketing and financial aid.

I was moved by the people on the island of Madagascar during my several trips to their beautiful country some years ago; when I was lecturing drama and art to the locals. They have incredible passion and creativity to do whatever it takes to make arts or crafts in order to sell it to tourists in order to support their families.

I personally do not believe in giving money to the poor and make them dependent on the contributor to keep on providing. Instead I believe we should look for opportunities where we can equip and support them in such a manner that the individuals, that are willing to work, become self-sustainable and empower their own communities.

Therefore this interactive platform aims to serve the “privileged entrepreneurs” with various training material and marketing tools and by doing so, raise funds to support and empower the unprivileged.

This network will offer the members the opportunity to meet and network with other entrepreneurs. This network offers both novice and old-hand entrepreneurs a platform to chat, blog, make new contacts, share videos and documents of their business or participate in our forum. Hence all elements are available for the members to promote themselves as leaders or their own businesses.

The network also provide training to active members in the form of blogs, articles, eBooks, video presentations and lectures from experts and leading entrepreneurs. This is aimed at teaching the entrepreneurs the ethnic principles of effective marketing, advertising and business management.

Competitive Advantage

PHASE 2 & 3:
This platform also encourages members to become paying members by subscribing. This membership is based on more sophisticated and enhanced training material for marketing and managing their companies effectively.

What set this network platform apart from other entrepreneurial networks is that subscribed members will have personalized marketing for their account with the network. These campaigns will be done on their behalf with the platform’s marketing partner. This will help both the active members and the network to grow the network with more members. These campaigns will include marketing channels like social marketing, video marketing, Pay-per-click (PPC), content marketing, mobile marketing, SEM and SEO.

The monthly membership fees will also serve as a source of residual income for the members, since it is based on referral-commission, which varies from 50% to 85%.

The company itself is non-profitable therefore we donate monthly profits into a Fund. This Fund will offer sponsorship, on application, to entrepreneurs who cannot afford the monthly membership. These sponsorees will also have the opportunity to earn commission. But their commission will be on a sliding scale, based on their personal referrals. Their sliding scale starts at 5% and gradually increases to 95%.

This business is already active in its first phase with the official website public for the last four months and is already starting to attract members. More than $5,000 has already been invested into this project by the management team. This helped the website, in partnerships with the marketing partner, to have more than a hundred postings on its Blog, an established eBook Library and various video presentations. The domain name already have more than 3,000 back links to the site in less than 100 days, boosting the site to rank on page two of Google Search.

The paying members will enable the Fund to sponsor more entrepreneurs into the network. This support from the Fund stretch future than just monthly sponsorship, since the profits from the Fund will be donated to a Trust. This specific Trust offer micro-funding in close collaboration with field partners certified by Mix Market aimed at financial aid and empowering of entrepreneurs.

Based on current calculations these charities will be funded ~US$10,000 to US$20,000.

Rationale for the deal

This opportunity offers a win-win situation for all who choose to get involved:
Entrepreneurs will benefit by networking and learning from the network’s online training material and tools.

The investor’s personal active account with the network will be managed on his/her behalf to expand his/her personal referral network on the platform, which by itself can yield ~147% ROI.

Subscribed member’s accounts will be marketed on their behalf via the marketing partner, assisting them to grow their network and referral-commissions.

The network’s Fund will be able to offer sponsorship to entrepreneurs lacking the necessary funds to subscribe.

The Fund will donate all profits to a Trust and assist international charities and empowering more entrepreneurs globally through micro-funding.

I want to thank you for taking the time to view my proposal. Please feel free to contact me for any specific information, questions or financial specifications.

Use of financing

The invested funds from the investors will primarily be used as working capital to start the network’s funded online marketing through the marketing partner to attract subscribing members. These funds will also help cover the other initial operational fixed and variable expenses for the next six to eight months till the network becomes self-sustainable.

Opportunity for the investor

Based on current fixed and variable expenses the network will require 130 active accounts to break even. This goal will be reached within seven months, based on the 1+1 Growth Rate, which translates to *one new member for each active member each month.

The Investor who invests US$15,000 has the potential to generate ~US$37,000 back or (~US$22,000) 147% ROI, based on the same network growth rate. After the first year the investor’s account has the potential to yield an average of ~US$24,000 per month. These financial goals will be achieved by the network’s management team, in collaboration with the marketing partner, who will manage the investor’s active account on his/her behalf.

The network will be able to maintain this growth-rate through the funded marketing campaigns with the marketing partner, which have a minimum monthly budget of US$3,000 to an annual budget of ~US$96,000.

Whereby at the end of the first year the network will have ~4,000+ Active members of which 25% (~1,000) of the accounts will consist of subscribed members. The monthly contributions enable the Fund to sponsor 3-7 accounts for each subscribed member. Since, once the network become self sustainable the fixed and variable expenses per member/account average at ~US$70/m each.

At the end of the first year the mini financial statement of the company is predicted to be as follow, based on the 1+1*:
Turnover: ~US$900,000.00
COS: ~US$500,000.00 (53.2%)
GROSS Profit: ~US$400,000.00 (46.8%)
Other Expenses: ~US$200,000.00 (24%)
EBITDA: ~US$200,000.00 (22.7%)
Donate ~US$90,000.00 (10%)

The annual EBITDA for the next few years is calculated as follow:
EBITDA: ~US$980,000

EBITDA: ~US$2,03 million

EBITDA: ~US$4,21 million

EBITDA: ~US$8,95 million

Looking for similar investment opportunities