The need for alternatives to be brought to the marketplace
There are two situational factors that will contribute to the success of Services4Stock, Inc.:
One: The Poor Odds of Finding Venture Capital
How many companies find funding each year?
Only 608 startup and early stage companies got their first round of venture capital in 2006 which is a fraction of a percent of the 5.7M companies with employees in the U.S..
The Number of Companies Seeking Funding Is On The Rise
In 2005, the success rate for companies seeking venture capital had deteriorated to below the 7 in 1000
Two: The high cost of advertising
Type of Advertising
Cost per 1000 Impressions
TV. 30 sec Spot - Prime Time
$16.85
TV. 30 sec Spot - Late Evening
$10.60
Magazine 1 Page 4 Color
$7.90
Daily Paper 1/3 Page B/W
$7.75
Radio 30 sec Spot
$4.10
Off Premises Signs(Billboards)
$2.83
On Premise Signs
$1.40
Of the 600 small-business owners polled nationwide in 2006 by Wells Fargo/Gallup said of the companies that spent money on advertising, 67% ran ads in local newspapers and magazines. 16% of the survey respondents said it was too costly. Still, 49% reported paying to advertise on the Internet in past two years, while even more expected to in the years ahead.
Conclusions
Emerging companies face dim prospects of finding and securing institutional venture capital to fuel the growth of their companies, and have to find creative ways to bootstrap their emerging companies.
The high cost of advertising can sap the lifeblood from an emerging company, and is often a hit or miss proposition for the advertising vehicles they have chosen
Advertising is often the only method an emerging company has to reach its prospective customers, and emerging companies need to find ways to fund it or risk failure
There is currently no major marketplace that connects service providers with emerging companies where services are exchanged for something other than money
Overview
Introduction
Services4Stock, Inc. is a unique service company that will address the issues described above
The Services4Stock, Inc. business model owns, promotes and cross leverages two web assets:
Services4Stock.com is a monthly subscription-based site that targets emerging companies and provides a method for these companies to exchange equity in their companies for much needed services by service providers.
Stock4Services.com is a secure website for service providers looking to find candidate emerging companies for which they can exchange their services for equity
Compelling Value Propositions:
The two websites in combination form a unique marketplace where two pre-qualified and motivated groups can connect and exchange value
Services4Stock, Inc will pursue an aggressive marketing strategy that will quickly attract enough participants to the marketplace to achieve liquidity (a critical mass of dealmakers on both sides)
Increased participation benefits the whole
Our services result in cost savings for emerging companies for services that directly contribute to the success of their companies
Our services facilitate the conversion of excess or underutilized service provider capacity into quantifiable value
Business Model
The two websites combined form a marketplace for the exchange of services for equity
Services4Stock, Inc. will be self-sustaining by obtaining subscriber fees from emerging company subscribers on Services4Stock.com
Services4Stock, Inc's. valuation will be greatly enhanced by the stock it acquires as a part of its compensation structure
Services4Stock, Inc. will supplement its online/offline marketing efforts with a direct sales force who will be response (should read responsible) for recruiting emerging companies and service providers into the marketplace
Emerging companies which includes start-ups as well as established companies
Service Provider primary market (St4Se)
Regional and national print publications
Regional and national television broadcast networks
Regional and syndicated radio stations
PR agencies
Law firms
Office space / landlords
Interactive Production firms
Brand development, identity and promotion
Brand development and recognition is an important part of gaining and sustaining market leadership
All direct marketing efforts will be used as an opportunity to promote the brand and corporate identity
Services4Stock, Inc. will utilize the resources and contacts from the sister companies to continually develop and execute publicity related tactics that will be used to enhance the brand recognition of the company
Action Plans
Ramp-up Plan
Leverage the existing network of media contacts to provide an initial base of service providers
Execute the promotional plans to immediately attract emerging companies who are interested in the services provided by out initial base of media service providers
Promotion Plan
A ramp-up promotional plan will be developed to generate of flow of emerging companies interested in media related services
Specific advertising campaigns promoting the benefits of exchanging equity for media services
An on-going promotion plan to recruit new service providers and emerging companies into the marketplace
Utilize Services4Stock.com subscriber revenue to fund marketing activities across the channels defined above
Leverage resources and contacts in the sister companies to increase the success of the promotion plan
Resource Plan
Alex Konanykhin will be the CEO/CSO and will leverage his extensive background to provide the strategic direction of the company
Marketing is crucial to the success of Services4Stock, Inc. and we will carefully recruit and select the best Chief Marketing Officer possible. The CMO will be responsible for developing and executing the campaigns in the channels defined above.
Over time, Services4Stock, Inc. will develop a sales team to recruit service providers and emerging companies into the marketplace
Services4Stock, Inc. will leverage third party contractor for developing one-time, non-core functionality or content of both websites
Financial Expectations
By the end of 2010, Services4Stock.com will generate $12M a year in revenue
By the end of 2010, Services4Stock, Inc. will have accumulated a valuation of $100M in equity in other companies
Are you a fast-growing company willing to trade equity for services such as advertising space in regional and national print and broadcast media? Visit Services4Stock.com and get access to such services today!
We are dedicated to facilitating mutually beneficial relationships between service providers and emerging companies. For service providers, we offer the opportunity to receive equity in exchange for services, enabling them to achieve ROI from perishable capacity that may otherwise go unused. For emerging companies, we offer an alternative way to acquire critical services such as expensive advertising, while slowing the burn rate and avoiding the high transaction costs and significant barriers involved in raising additional cash.
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