Strategic Sourcing - Deck
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Transcript of Strategic Sourcing - Deck
"Businesses spend about 19 billion dollars plus or minus on
promotional products, and about 150 or 170 billion on printing…people
are still buying print, people are still buying promotional products and
many of them are looking for people to add value to those products—
not just sell on the cheapest price."
CEO ~ Greg Muzzillo Proforma
“There are no pronounced leader with a dominating market share within
our 19.8 billion dollar industry”
IBIS World ~ Justin Ruthven
Rhino eMarketing, LLC d/b/a Strategic Sourcing (hereinafter “Strategic Sourcing”) Offers:
Strategic Sourcing is a wholesale/distributor providing Print, Promotional Products and Apparel B-2-B.
S2 mission is to empower any sized business, offering marketing and procurement sourcing benefits with cost, exposure and time savings.
S2 sourcing ability includes end-column pricing from 150+ primary industry suppliers, nationally and internationally.
S2 internal information service maximizes data flow between suppliers, customers and our team.
S2 offers numerous beneficial programs from total project management to apparel revenue share.
Overall S2 has been established to A) Help any size business benefit through sourcing aggregates and B) Empower our sales staff to be more effective and happy.
Print, Promotional Products, Apparel
Our Market is $19.8 Billion (promotional Products), $22 Billion (Apparel), $167 Billion (Printing)
Up 7.21% Growth
8 out of 10 Businesses use distributors/wholesalers
Average profit margin of 53%
Industries serving: Education, Financial, Not-for-profit, Health Care, Construction, Trade, Real Estate, Government, Professional, Hospitality
88% recalled the advertiser from a promotional product received in the last 12 months
Brand Awareness
12.67% (11.30%) New
Customer/Account
Generation
10.84% (11.52%)
Trade Shows
10.45% (9.28%)
Public Relations
9.58% (10.71%)Dealer/Distributor
Programs
9.41% (7.59%)
Employee
Relations
and Events
9.40% (9.14%)
Employee Service
Awards
6.59% (4.72%)
New
Product/Service
Introduction
6.16% (9.13%)
Not-for-Profit
Programs
5.50% (7.86%)
Safety Education
5.44% (4.18%)
Internal
Promotions
4.85% (4.44%)
Customer Referral
4.35% (3.76%)
Other
3.56%
(4.98%)
Marketing
Research
1.20%
(1.38%)
Category of Sales
Statistics sited from PPAI Reports
Lack of Service Directed Towards Small and Medium Size Businesses
Uneducated Purchases
Sourcing Inaccuracies and Limitations
Limited Purchasing and Marketing Sourcing Choices
Marketing Project Retention
Up-to-Date Knowledge Base
Lack of Time to Actually Sell
Bogged down with Backend Office Obligations
Limited Customer Service Support
Missing Marketing and Sales Tools
Shrinking Commissions
Rigid Company Culture
Operating Systems that don’t Work
Nickel & Dimed Costs of Selling
For Our Customers For Our Sales Associates
No extra fees…Period
Dedicated customer service person
Product searches and presentations provided by dedicated customer service rep
End-column pricing from 150+ primary industry suppliers
Client proposals, sales orders, acknowledgements, order entry, all handled internally
Order tracking to insure in-hand dates are met, every order
No accounts receivable collections, handled internally
Aggressive commission structure
Sales collateral, business cards provided at no charge
Full Service Offerings no matter the size of the business
eCommerce Solutions
Total Project Management
Managing costs and reducing time
Branding across multiple locations
Supply-chain management
Reduction of time management with multiple vendors
Integration of online and offline marketing
Added value from economies of scale
Extensive breadth of services and products
Reality, we make procurement and marketing easy
There are many distributor/wholesalers but few with successful models targeting our demographics.
True Competitors Proforma – By far the largest with 820+ reps. Challenges occur with the support and
additional costs that are charged. Everything from sales materials to business cards.
Safeguard – Most online advanced. Offerings are pretty deep but concentrate on mostly print.
iPromoteu – More concerned with bringing sales associates aboard. The rep still stays independent but utilizes their internal structure. The independent is responsible for all operations.
American Solutions – Has been around since 1981. They were at their best in the 90’s with challenges occurring in the early 2000’s.
AIA – Was growing dramatically, then had a power struggle internally. Reps show concern with lack of customer service and product sourcing with additional fees.
Strategic Sourcing’s advantage over the most recognizable competition is our ability
to generate strength to any size business and provide our sales associates with
better sales tools, extensive support and generous commissions.
6 Demographics 4 Regions with Regional Managers (Midwest, South, East, West) and 20+ sales associates within each region
College Sales Model with Manager coordinating 1-3 student associates per college within 85 colleges
Hospitality Model with Manager coordinating 20+ sales associates within 4600 targets
4 Product/Service Lines Print – Management of print, simplifying business processes by analyzing purchases, enhancing
productivity and reducing costs
Promotional Products – Over 1 million products to offer through business marketing initiatives
Apparel – Very unique apparel programs, including revenue share, online designer tools and company storefronts
Total Project Management – Offering a mix of services that facilitates the customer with procurement and marketing end-to-end solutions
Scalable Ability Extremely robust system integrating SAGE, Deco Network and Customer Focus Systems into one MIS
Average profit margins ranging from 25% - 70%
Sourcing Strategies Includes 3 buying groups managing over 500 suppliers
Print sources are arranged demographically to support each region of sales
Todd Kempinger (CEO)
30 years of accomplished Business Leader & Entrepreneurship bringing a strong track record of performance in start-up, turnaround and high-paced organizations. Prior to establishing Strategic Sourcing, Todd founded Rhino Graphics, The Luggage Club and was involved with several other start-ups.
Bernie Emmons (Recruiting and Sourcing)
Over 40 years of experience serving the print and promotional products industry. Bernie brings a wealth of knowledge within the industry that allows S2 the ability to take advantage of personnel and sourcing.
John McCollins (Sales Management)
For the past 40 years John has been involved in the printing and promotional world taking on roles from controller to sales manager to general manager.
Financials are based on an accelerated growth of recruitment of sales associates. Growth ranges from minimal sales associates to over 100+ within 5 years.
All associates are 1099 independent contractors.
Average first year sales of $433,000 per sales associate. Source PPAI.
Sales Management includes 4 regional managers, 1 hospitality manager and 1 college coordinator benefiting from a 8% override on all sales associates invoiced orders.
Even though margins range from 25% - 70%. Financials calculate a 35% margin.
Terms reflect 30 days payable and receivables.
Pro Forma anticipates up to $250,000 investment for this round.
Strategic Sourcing
Forward Looking Financial Statement
Profit & Loss Year 1 Year 2 Year 3 Year 4 Year 5 InvestmentNet Sales $1,275,481 $7,883,849 $17,621,398 $30,788,225 $53,622,258 Founder $55,000
Gross Profit $277,264 $2,199,521 $5,564,435 $9,761,519 $20,954,554 Preferred $0
EBITDA ($239,488) $343,702 $2,005,601 $4,069,164 $11,686,950 Common $250,000
Net Income ($239,488) $298,994 $1,092,246 $2,201,418 $7,749,032 Total $305,000
LoansCash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Total $0
Net Income ($239,488) $298,994 $1,092,246 $2,201,418 $7,749,032 Interest Paid $0
Cash Inc. / Dec.) ($46,777) $95,418 $1,098,203 $1,993,865 $3,676,704 Principal $0
Beginning of Period $0 ($46,777) $48,641 $1,146,845 $3,140,709 End Balance $0
End of Period ($46,777) $48,641 $1,146,845 $3,140,709 $6,817,413
Net Income ($239,488) $298,994 $1,092,246 $2,201,418 $7,749,032 Cash
Breakeven No Breakeven
Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5 Least Cash -$314,526
Total Assets $210,479 $1,114,031 $3,059,655 $6,478,957 $12,448,600 Most Cash $6,817,413
Total Liability $199,967 $804,525 $1,657,903 $2,875,788 $1,096,399
Equity $10,512 $309,506 $1,401,752 $3,603,170 $11,352,201
Total Liab. & Equity $210,479 $1,114,031 $3,059,655 $6,478,957 $12,448,600
Valuation $1,913,221 $11,825,773 $26,432,097 $46,182,338 $80,433,387
Revenue (1.5x multiple)
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$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
Profit & Loss
Revenue Expenses Net
Strategic Sourcing Pro Forma Financial StatementsPrepared June 9, 2015
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000Cash Flow
($2,000,000)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58
BreakevenAll the financial information is speculative and reflects Strategic Sourcing's business and financial objectives that are in no way guaranteed or otherwise
assured. Actual results could be substantially less or greater than those included. Strategic Sourcing makes no representation or warranty as to
the attainability of those assumptions or whether future results will occur as projected.
Strategic Sourcing
Forward Looking Balance Sheet
All the financial information is speculative and reflects Strategic Sourcing's business and financial objectives that are in no way guaranteed or otherwise
assured. Actual results could be substantially less or greater than those included. Strategic Sourcing makes no representation or warranty as to
the attainability of those assumptions or whether future results will occur as projected.
Strategic Sourcing
Forward Looking Cash Flow Statements
All the financial information is speculative and reflects Strategic Sourcing's business and financial objectives that are in no way guaranteed or otherwise
assured. Actual results could be substantially less or greater than those included. Strategic Sourcing makes no representation or warranty as to
the attainability of those assumptions or whether future results will occur as projected.
Strategic Sourcing
Forward Looking P&L Statements
All the financial information is speculative and reflects Strategic Sourcing's business and financial objectives that are in no way guaranteed or otherwise
assured. Actual results could be substantially less or greater than those included. Strategic Sourcing makes no representation or warranty as to
the attainability of those assumptions or whether future results will occur as projected
Strategic Sourcing Investor Details
**Additional Option of Convertible Note is available.
All the financial information is speculative and reflects Strategic Sourcing's business and financial objectives that are in no way guaranteed or otherwise
assured. Actual results could be substantially less or greater than those included. Strategic Sourcing makes no representation or warranty as to
the attainability of those assumptions or whether future results will occur as projected.
Funding round is broken into five timelines within
our full round.
Strategic Sourcing is seeking up to $250,000 investment to guide us through the set-up stages which
consists of recruiting, training sales associates, finalizing our team and building our infrastructure.
This opportunity offers investors a chance to be part of a business
with scalability, great profit margins and fantastic returns.
CONTACT US TODAY
Strategic Sourcing
PO Box 291
Oshkosh, WI 54903
920-379-5111
www.strategicsourcing2.com