WTF Wheres The Food

Georgetown University MPTM-Capstone; Professor Mikah Sellers | December 2012 © 2012 WTf, LLC. (Fictitious)

…and Introducing

Real-Time Street Collaboration Solutionswith LiveSmart℠ Technology

Where Urban Gen Y Lifestyle Meets Technology

www.WTfdc.mobi

Georgetown University MPTM-Capstone; Professor Mikah Sellers | December 2012 © 2012 WTf, LLC. (Fictitious)

Background


Mobile Food


Meet our Customers…

Challenges


Current Technology

Challenges Cont.’d


Local City Ordinances

Challenges Cont.’d

Business Opportunity


Growing up with Gen Y (Millennials)

Marketing to Urban Gen Y: Personas

10

Build a Virtual Community around a brand Enlightened urban dwellers

Work to live, not live to work

Color outside the lines

Enable to eco-system Provide rich content and

marketing

Provide technology-based solutions

WTf.mobi Vision and Mission

Start Up Opportunity

11

What’s in a name?

WTF, LLC.

LiveSmart℠

Where's the food?!www.WTfdc.mobi

12

Business Model

Four distinct but complementaryplatforms

Website Free content

Build community

Sell ads

Apps Free tools

Upsell to paid tools/services

Apps + Content Aggregation + Database + Traffic/Page Ranks = $

LiveSmart℠ SaaS for ERP/M2M and Food

Management

OEM SDK and Services

Pro Services SaaS Service Desk

Turnkey GTM Services

Gov Lobbying

13

WTf!? App Truck ID builder/tracker/full-search

Prepay system w/rewards

Food Truck Customers Track and find preferred food trucks

Offer options based on preferences/trends

R/T communications

Food Truck Owners Grow and optimize sales

Build brand loyalty

Where’s The Food!? For Web and Smartphones

Real-time FT Collaboration Tools

14

FT Industry Urban-GenY News

App Download Home

Ad- based model

FT Micro-Sites, GTM Platform

Partner Backlinks – Yelp/Digg/Groupon

Follow NFL city build out (layout similar to Craig’s List

WTf.mobi

Website Platform

15

Food Truck Owner B2B Services

ERP Back Office and POS

M2M Fleet/Worker Mngt

Mobile Inventory Replenishment (MIR)

Enterprise Food Vendor Mngt Events; Purchase

Consortium

SaaS and Contract Services

OEM SDK

LiveSmart℠ Platform as a Service (PaaS)

Mobile Enterprise Cloud Solutions

16

FTO Service Desk Support Feedback via SaaS

B2B Systems Training ERP, POS, Fleet Mngt

Mobile Food Vendor Mngt Purchase Consortium

Event Mngt

Gov’t Consulting Services Assigned Rep; Lobbying

24x7x365 Service Desk Support

Professional Services

Marketing-Research

18

Demand has grown significantly in the past five years, IBISWorld

Revenue is expect to grow steadily during the next 5 years by average annual rate of 8.4%, IBISWorld

WTF, LLC’s market size sample extremely modest

32 “NFL” CitiesAverage of 200 FT’s/CityAverage of 5,000 FTC’s/City

3 million food trucks in U.S., Entrepreneur, MintzerEst. 2.5 billion people per day in the world buy from street vendors, United Nations

Estimated Food Truck Market Size

19

Food Truck Interview

Primary Research

20

Demand generation “crowd sourced feedback on

location opportunities or corporate contract leads would be awesome!”

“real-time guidance on alternative locations based on the match up data would be very cool!”

Eddie Crosslin, Beach Fries LLC

Looking for Niches

21

Location Recommender System

Real-time Replenishment System

Crowd-Sourced On-Demand Event Scheduler

Crowd-Sourced Support for New City Laws

Private Contracts Leads Private Prop./Long-term

Tariq, EuroCafe USA – “police harassment is becoming unbearable”

Horse’s Mouth

22

Market Analysis

SWOT

Positives NegativesStrengths:•Aggregates multiple Twitter feeds for location•Plots food truck locations on an interactive map•Provides food truck name/location searching capability •List known food trucks in the DC area

Weaknesses: •Poor updating and refreshing of information•No rating system•No user account and customized alerts•No advertising capabilities•Owners cannot control their own space•No collaboration with other food trucks•Not everyone follows Twitter or Facebook

Opportunities: •Food truck owner driven real-time, dynamic food truck location•Advertising for owners•Customer accounts/profits for advertisement•Food truck rating system•Collaborate with food trucks to distribute coupons, information, and reward programs•Remove dependency on social media

Threats: •Food truck owner adoption•Food truck customer adoption•Dissemination of personal information of customers •Popularity of Twitter

23

Market Analysis

Qualitative Risk

Attaining critical mass – high impact PR/Promo blitz focus

Complex database integration – features phased in; COTS-based, mobile app-mined but browser-based at first

Crowd-source “for cause” online campaign to garner support from the masses

Competitive local labor for interns – leverage brand/image of the urban-street; tent/kiosk sponsorships; entrepreneurship clubs on campuses

Category Probability Impact Risk Level (1 to 100)

Attain critical mass of members 25 100 25

App technology tools don’t work 25 100 25

Can’t scale labor force within budget 25 50 12.5

Negatively-Impacting Legislation 50 100 50

Marketing-Product Line and Services

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OMG-WTf!?℠ (Oh My Gosh, Where’s The Food!?) FREE APP FT profile tagger, tracker, full search, live geo locator

Secure prepay system w/loyalty system

LiveSmart Behavioral Analysis Responder (BAR) technology – on-the-fly FT suggestions based on FT profiles tagged and historical data

FTO messaging (email/twitter), survey responses/feedback

Civic Duty OPT-INS (hot blast via Twitter/FB) Alert Food Truck (AFT) Button

GOING/WENT Buttons

MY CAUSES Creator – crowd source support (cancer awareness, city ordinance drives (WTf!? Keep the Trucks!)

Real-time FT Collaboration ToolsFor Web and Smartphones

OMG-WTf!?℠ v1.0 (FT Customer Features)

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OMG-WTf!?℠ Feature-Rich Sales Optimization Tool$119 per month subscription + payment system fees. 90 Day FREE Trial. Comprehensive Identity Profiler

Lead Notification from AFT feature

Secure payment handling system

WP editor for WTf.mobi micro site (125x125 pixel Ad board)

Custom survey generator w/RT email/twitter blast out

Relative industry news feeds

Real-time FT Collaboration ToolsFor Web and Smartphones

OMG-WTf!?℠ v1.0 (FT Owner Features)

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SRSLY-WTf!?℠ (Seriously!, Where’s The Food!?) $29.99 per month subscription. 90 Day FREE Trial. OMG-WTF!?℠ Features plus

The “Street Pack” = the top most popular city club memberships as a bundle; City Bike, Jazz House, The Coffee Grind, Bennie’s Place, Dance Dirty, WeLobbi, Newseum, Art Walk DC, eFDating, Blues-Tatoos and more!

Beginning the Urban Gen Y Social Network for Web and Smartphones

SRSLY-WTf!?℠ v1.0 (FT Customer Features)

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SRSLY-WTf!?℠ $179 per month subscription + payment system fees. 90 Day FREE Trial. OPENEVENT! Lead/Response applet

Reverse Auction bid response to events and long-term contract requests; Demand Side/Supply Side Portals

RT collaboration tool

Custom survey/poll generator w/feedback reports

Micro website ad package upgrade; custom pages, photo gallery, virtual coupon generator, back links and blog

SEO optimizer tool tips

Beginning the Urban Gen Y Social Network for Web and SmartphonesBeginning B2B FTO Solutions

SRSLY-WTf!?℠ v1.0 (FT Owner Features)

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SRSLY-WTf!?℠ $249 per month subscription + payment system fees. 90 Day FREE Trial.

SRSLY-WTf!?℠ v.1.0 features, plus

Introducing OPENSTREET! Sales Optimizer Tool

Intelligent alternative location generator with LIVE “HEAT MAP” view showing in real-time what streets are open and generating demand.

Beginning the Urban Gen Y Social Network for Web and SmartphonesBeginning B2B FTO Solutions

SRSLY-WTf!?℠ v2.0 (FT Owner Features)

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Relevant content aggregator

Variety of Ad packages

Bring together urban community to steer toward a brighter tomorrow

Cause Driven – starting with FTO

Leverage our staff, affiliations and contacts

Productivity Improvements

Workforce Development

Get Involved. Be Heard. See Results.

Genesis for Urban Gen Y Communityv.2.0 Advocating for the Street

WTf.mobi v.1.0

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SaaS Mobile Enterprise B2B ServicesMobile Client Support: Android, iOS and WinMobile$20K unlimited licensing fee + 28%/yr maintenance

LiveSmart SDK v.1.0 for Engine and OEM

40

SaaS ERP + Point of Sale Ecommerce solution

No bulk data loads, R-T synch, process integration and security

Mobile ERP+POS AppCo-Managed SolutionNRC $5K + MRC $299/month + eCom fees

MEPo

Flexible deployment Any cloud

Any 4G-LTE infrastructure

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Add on module to MEPo

Monitor Mobile Inventories against Sales in RT Leverages ERP back office and

M2M wireless infrastructure

Dispatches replenishment list with GPS location info

Mobile Inventory Replenishment AppNRC $1K + MRC $49/month

MIRt

42

FTO Fleet Management Telemetry

RF/M2M wireless sensors

Asset tagging/tracking

Secure AES 128/192/256 Comms

FTO Worker Management Scheduling, Status and Time Keeping

Forms management and GPS tracker

Mobile Fleet & Worker Management AppCo-Managed SolutionNRC $5K + MRC $299/month

MOFo

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App Deployment, Configuration and Integration Food Truck Owners – M series portfolio

Enterprise Organization Mobile Food Services MOe application management

Turn key event management

Vendor consortium management

LiveSmart SDK OEM Integration and Support SaaS custom service desk

Consulting, Integration and SupportMobile Enterprise Services

Professional Services

Prov

ision

Production

Decommission

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Machine-to-Machine Systems Design

Mobility Device Management

Mobile ERP+POS Consulting

Mobile Fleet Management

Lateral to other industries via lessons learned and best practices

Mobility Implementation and Integration Services

45

Custom Services for FTO and Enterprise Organizations

Portal Service Catalog ERP/POS Data Center Network Infrastructure MDM M2M Application Management Cloud Performance Security & Systems Management IT & Systems Engineering Test & Turn-up Billing Program Management & Project Management

SaaS Help Desk and Mobility Management Lifecycle

Mobile Service Desk

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Pragmatic Marketing Consulting Strategic, Branding, Lead Generation

Search Engine Optimization (SEO) Dedicated staff and reviewers, micro site

management, meta data/key-word page management; back link checks to Yelp, Digg, etc.

PR Campaign Management Strategy, positioning, launch plans, press

distribution, media relations, press briefings, article prep and submission, branding and media measurement/audit

Serving Food Truck Owners

Turn Key GTM Services

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Greatest asset = Data base Distill insight from large data sets

Better understand PRECISE needs and behaviors of the Urban Gen Y audience

Tie asset to quantifiable marketing strategy

Achieve new ROIs. I.e. 3rd Party?

Have a goal

Predictively think

Be timely

How many Gen Y live in city, are vegetarian, democrat, for cause marketing, eat street food and click thru WTF.mobi to book events?

Big Data v.1.0

Marketing-Product Management

49

Human-centered design process

Research and scenarioson future developments

Scenarios

In-depth understanding of user needs through observation and analysis

User profiles

Comprehensive usability analysis Implementation support

Strong user experiences Iterative prototypes

User-centered design concepts and strategies

Design specification

People

Context

Foresight

Understand

Ideas

Design

Experience

Test

Touchpoints

Prototypes

LiveSmart℠

50

First Year Plan

Solution Roadmap

MarketingBlitz

18 Cities 32 Cities

Beta Testing

1.5 months

Initial Development

2 months

Opportunity Planning

4 months

GO LIVE – SF & DCOMG WTf!? v1.0SRSLY WTf!? v1.0WTF.mobi v1.0SDK 1.0

4.5 months

New Feature Development

0 month 12 months

New Feature Development

Year 2

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Feature Rollouts

Solution Roadmap

Year 3Marketing

Blitz

GO LIVE 18 Cities

4.5 months

Scrum #1 – SDK 2.0

Sprint #1 Sprint #2 Sprint #3 Sprint #4 Sprint #5 Sprint #6

6 months

Scrum #2 – SRSLY WTf!? 2.0

Scrum #3 –WTf.mobi v2.0

Scrum #4 – MEPo

Scrum #5 – MIRt

WTf!? Feature Roadmap

Feature SDK 2.0

SRSLY WTf!? v2.0

WTf.mobi v2.0

MEPo MIRt MOFo MobileService Help

Delivery(month)

15 19 23 31 35 39 43

(year) 2 2 2 3 3 4 4

24 months

2 month Scrum

overlap

32 Cities

Year 2

52

Schedule and WBS

Project Management

53

Milestones

Project Management

54

Staffing Plan

Project Management

Marketing-Pricing & Promotion

56

Pricing Strategy – WTf.mobi v.1.0

Ad-based Model

Ad revenue – market saturation; creates database value; drives page ranks and CPM value

Page ranks, click-throughs, traffic patterns

Within or near content, navigational aids do best (Google AdSense 2012)

CPM (cost per 1,000 views)

Header Sidebar Footer Blended w/Content

468x60 $50 $50 $50 $100

120x600 $30 $30 $30 $50

125x125 $20 $20 $20 $40

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Pricing Strategy – Application Solutions/Pro-Services

NRC and MRC Subscription Fee ModelEvolution = FREE Apps -> Crowd Source Causes -> Brand Community -> B2C/B2B -> R/T Street Collaboration Solutions

(#’s are rounded; K=000) Non Recurring Cost (NRC)

Monthly Recurring Cost (MRC)

OMG-WTF!? V.1.0 FTO FTC

$119FREE

SRSLY-WTF!? V.1.0 FTO FTC

$179$29.99

SRSLY-WTF!? V.2.0 FTO $249

ENTERPRISE B2B

MEPo YR1 YR2

$2,000K$8,000K

$243K$750K

MIRt YR1 YR2

$0$800K

$0$470K

MOFo YR1 YR2

$0$4,000K

$0$2,870K

SDK V.1.0 $26K

PROF SERVICES

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Promotion - PR Campaign for “LiveSmart City”

One Year RetainerHigh Impact Front Loaded Blitz

Online news board for editors

Engage key editors/influencers

Engaging editorial calendars

Press briefings, article submissions

Vendor trade tent sponsorships

Cross sponsorships with Sirius, DC101

deadmau5 4 city simulcast event

Cause marketing event

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Cause Marketing

Reputational Capital – American Co’s spent $1B in 2004, IEG Sponsorship Report

Breast cancer awareness Raise donations

10K race

$1.2M from 10¢ Yoplait Yogurt lids

Helps attract goodemployees

60

Promotion – Sponsorship and T Drives

Brand Building and RecruitingOwn WTf shares – eat your way to ownership

Festival sponsorships

Food truck owners and customer giveaways in return for surveys/feedback

Merchandise purchases on WTf.mobi

Press briefing giveaways

Campus recruiting drives

Marketing-Digital Online & Channels

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Digital Online Marketing Staffers

SEO Strategy

* Write for the right audience* Well-crafted Headlines: “How I earned $855 in 1 day?* Focus on quality, not quantity* Optimize your content SEO* Make some customizing changes when syndicating

Here are some SEO tips you can use:Choose the right keywords:Use Keywords in HeadlineUse Keywords in Meta title and descriptionUse keywords in headings and bold textOptimize Image ALT descriptionsUse in URL e.g. www.yoursitename.com/keywordphrase.html

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Customizing Social SharingCustom links in Email or Landing PageReviewers – meta data, rich keywords, Google scraping, indexing, back links to Yelp, Digg..

SEO Strategy Cont.’d

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Milliseconds to Convert Them!

SEO Strategy Cont.’d

page load speed:

“Users start hitting the “back” button when a page takes more than 2 seconds to load” - A study by Akamai and Forrester Research 2009

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B2B Affinity Program

Channels

Financials

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Finances

Development & Annual Operation Cost Projection

Yr1 Yr2 Yr 3 Yr4 Yr 5

Start up Development & MarketingCost

$1,791,220

Web Maint. Cost & On Going Development

$421,400 $422,700 $423,000 $423,000 $423,000

Marketing $1,402,000 $2,136,000 $2,712,000 $3,288,000 $3,864,000

Operat ing Cost $1,231,000 $3,147,600 $4,976,400 $6,805,200 $8,634,000

Finance Change Interest $696,651 $696,651 $696,651 $696,651 $696,651

Management Reserve $834,490 $1,365,130 $1,846,210 $2,327,170 $2,808,130

Total Cost $6,376,761 $7,768,081 $10,654,261 $13,540,021 $16,425,781

Annual Costs

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Finances Cont.’d

Revenue Projection

Yr1 Yr2 Yr 3 Yr4 Yr 5

No. of Cit ies 126 270 414 558 702

No. of Food Trucks 145,600 489,600 835,200 1,180,800 1,526,400

OMG-WTF!? V1.0$119 / 15% FT Owners

$2,506,140 $8,739,360 $14,908,320 $21,077,280 $27,246,240

SRSLY-WTF!? V.1.0$179 / 5% FT Owners

$1,256,580 $4,381,920 $7,475,040 $10,568,160 $13,661,280

SRSLY-WTF!? V.2.0$249 / 5% FT Owners

$851,580 $6,095,520 $10,398,240 $14,700,960 $19,003,680

MEPo$299 / 1% FT Owners

$0 $861,120 $2,497,248 $3,530,592 $4,563,936

Customer APP$29 / 2.5% of Users

$5,278,000 $17,748,000 $30,276,000 $42,804,000 $55,332,000

Ads Revenue from Main $109,200 $367,200 $626,400 $885,600 $1,144,800

MIRt / TBD ? $0 $0 ? ? ?

MOFo / TBD ? $0 $0 ? ? ?

SDK V.1.0 $0 $0 ? ? ?

PROF SERVICES $0 $0 ? ? ?

Total Revenue $10,001,500 $38,193,120 $66,181,248 $93,566,592 $120,951,936

Annual Revenue

69

Finances Cont.’d

Break-even Analysis

10 months after the operation; servicing 102 major cities and 20,400 FT Owners

70

Finances Cont.’d

Capitals & Owner’s Equity

Stakeholder Investment Ownership

Partner 1 50K 15%

Partner 2 50K 15%

Partner 3 50K 15%

Partner 4 50K 15%

Investors 2M 40%

Total 2.2M 100%

Four Partners & Investors

40% of stakes will be sold to Investors

3Months After Operation - $5M Loan @ 7% Interest from Private Investors or Banks

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Finances Cont.’d

Business Valuation

http://valuationacademy.com/industry-specific-multiples/

Internet & Technology base industry multipliers are 11 to 19

Based on 11 multipliers on profits

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

Revenue $10,001,500 $38,193,120 $66,181,248 $93,566,592 $120,951,936

Cost $6,376,761 $7,768,081 $10,654,261 $13,540,021 $16,425,781

Prof it $3,624,739 $30,425,039 $55,526,987 $80,026,571 $104,526,155

Business ValuationMult iplyer 11

$39,872,128 $334,675,428 $610,796,856 $880,292,280 $1,149,787,704

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Finances Cont.’d

ROI

Based on 40% Stakes for $2M InvestmentsY r 1 Y r 2 Y r 3 Y r 4 Y r 5

Accumurativ e Rev enue $10,001,500 $48,194,620 $114,375,868 $207,942,460 $328,894,396

Accumurativ e C ost $6,376,761 $14,144,842 $24,799,103 $38,339,124 $54,764,905

Accumurativ e Profits $3,624,739 $34,049,778 $89,576,765 $169,603,336 $274,129,491

RO I From O peration 72% 681% 1792% 3392% 5483%

B usiness ValuationMultiplyer 11

$39,872,128 $334,675,428 $610,796,856 $880,292,280 $1,149,787,704

40% Stakes $15,948,851 $133,870,171 $244,318,743 $352,116,912 $459,915,082

RO I from Stakes 797% 6694% 12216% 17606% 22996%

T otal RO I 870% 7375% 14007% 20998% 28478%

Summary

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Food truck business continues to boom

Need for technology solutions

Everyone benefits!

WTf, LLC can be successful!

Conclusion

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What if there was no WTf!?

OK, Enough Talking …

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Where’s The Food, LLC123 U Street, NWWashington, D.C.USA

T +01 234 567 8910

[email protected] www.WTf.mobi

Partners Kyle Ellmann

John Kostak

Kil Kim

Elizabeth Shepard

Thank You!

WTF Wheres The Food

Education

Transcript of WTF Wheres The Food