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EZsmart
Jeremy Miller, CEO Pete Perlegos,CTOOscar Gee, VP Marketing Ryan Tang, CFO
Business PlanPresented by EZsmart
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EZsmartOur Company Concept
EZsmart Overview
Market Information
Financial Projections
Product Information
Objectives and Considerations
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EZsmart
EZsmart empowers retailers and suppliers
to supply interactive information and
instruction manuals to its customers.
Our Company Concept
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EZsmart
• Multimedia Content Provider– Using new and existing technologies– Work with industries to create specific content
• Ready to Assemble (RTA) furniture market.
• A branding expert
Who We Are
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EZsmartSmartStuff CD
SmartStuff CD
SmartStuff CD
SmartStuff CDR.T.A
Product
Packaging and Branding
Protective Case
Placed Inside or Outside of Product
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EZsmart
I make your product a Smart Product!
Meet SmartStuff CDs.
With EZsmart’s digital help, paper manuals are no match.
Product Branding- SmartStuff Mascot
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EZsmart Advantage
Consumers and Suppliers
Easier to understandIn depth Information
InteractiveUser-friendly
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Install the Smart tool into the screwand turn clockwise until screw is tight
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Consumers and Suppliers
EZsmart Advantage
Higher customer satisfactionImprove Market Share & SizeOpportunities for catalogs Reduce customer service costsMarketing Data Sales
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EZsmartProduct Information
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EZsmartProduct Capabilities
20 minutes of compressed video
40 megabytes of interactive multimedia
30 minutes of audio
Up to 900 Screens and photos
10,000 pages of text
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EZsmartHow Do We Develop Our Product?
• Manufacturers already create instruction manuals
• We work with manufacturers to translate this manual into an interactive presentation
• Bring in expertise from repairmen &
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EZsmartHow Do We Develop the Interactive Presentation?
• Macromedia Flash
• JavaScript
• QuickTime VR
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The presentation will incorporate multimedia
• Audio: .wav, .midi, etc.
• Video: MPEG, Quicktime, etc.
• Graphics: Adobe Photoshop, Flash, etc.
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What Can We Provide IKEA ?
•Ikea has products that need assembly.
•We make it easier for people to assemble Ikea’s products.
•People will be satisfied with their experience and return to purchase additional products.
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Product Links – Advertising
While installing the product
Sell them complimentary products.
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Bookshelf Books at Amazon
Entertainment Shelf Entertainment System
Third Party Advertisement
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More Product Components
DVD• larger capacity
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•Updateability on global scale–Update product information
•Cost efficiency
•Target distribution–Advertising
•Extend life of CD Presentations
CD-Updateable technology
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Market Overview
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Overall Market
Worldwide CD/DVD Rom Installed Base
0
200
400
600
1992 1994 1996 1998 2000 2002 2004
Year
Re
ad
er
Un
its
(M
illio
ns
)
CDs DVDs
CD-ROMS are installed in 90% of all computers
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01020304050607080
Men Women Ages 26to 35
Over 56
Multimedia PC Usage
Would You Use Your CD-Rom Drive for Multimedia?
Electronic Industries Alliance, 1998
Per
cent
age
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EZsmartTarget Markets: Primary
Ready to Assemble (RTA) Suppliers
3 Billion 1999
Bush Industries- 441,000,000Dorel Industries-
575,960,000O’Sullivan, Inc- 90,500,000
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Car Parts Installation
• BF Goodrich teaches how to change tires.
• Dennon teaches how to install speakers.
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• Creative Lab teaches users how to install a DVD drive.
• 3Com teaches customers how to install modems on their own.
Computer Peripherals
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Make Up Companies
Revlon teaches women how to apply
makeup on CD-ROMs!
Aveda teaches customers how to
brush all types of hair!
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Market Research
• Businesses spend 116 billion dollars a year on product support -Interactive Weekly
• “Manuals tend to come in two flavors, dull and unintelligible” -Mark Forseth, technical publisher
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EZsmartStrategy: Pricing
Presentation Creation Fee– $500- $100,000
Per CD Charge of $0.40-$.80
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Trade Shows
Direct Sales
Price Promotions
•Association to Suppliers in the Furniture Industry
•Start forming partnerships in Year 1
Strategy: Promotion
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• Digital Business Cards• iQrom• Digibizcard.net• Avomedia
Simply make promotional materials for companies placed on CD-ROMs.
Competitors
Priced between $500-20,000
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Outsourcing and Barriers to Entry
Strategic Alliances with RTA supply leaders:
•Dorel, Bush, O’Sullivan
Action Benefit
Barriers to Entry
Product Branding- SmartStuff CDs
Customer awarenessClient loyalty
Outsource CD Production Economies of Scale
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Strategic Alliances
“Better than a patent!”Wade Dickenson
Video production partner- reduce large costsCD-ROM Partner- Best Product at lowest priceIndustry partners- Safety Net against competitors
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Ready to Assemble suppliers
Revenues of 441 million
Major Suppliers to:Office Max Sears
Best Buy Wal-Mart
Case Study: Bush Industries
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Value Proposition
• Customer Goodwill• Repeat Customers • Highly Targeted Marketing• Reduced Customer Support• Customer Information
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EZsmartTimeline: Bush Industries
Demonstrate Cost Savings
Enter into Contract for Production
Meet with Product Managers to Create Manuals
Create Presentation
Distribution and Logistics
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Tech n o log y &O p era tion s
S a les &M arke tin g
F in an c ia l &B u s in ess S u p p ort
C h ie f E xecu tive O ffice r
• Understand Process
•Work Closely with Client
•Build Do-It-Yourself Presentation
• Identify New Markets & Opportunities
•Sell Presentations
•Follow up on Clients
• Maintain Investor Relationships
•Determine Pricing
•Support Other Divisions
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EZsmartPosition Average Annual Salary Employees
Project Manager $100,000 3Presentation Developer $85,000 7Graphic Design Specialist $70,000 5
Marketing Strategist $62,000 1Sales Representative $53,000 + Commission 5
Top Executives $80,000 4Lawyer $100,000 1Accountant $50,000 1IT Engineer $50,000 1Human Resource $45,000 1Admin Assistant $35,000 2
31
Employees at End of First Year
7
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Revenues over First 12 Months
$0
$5,000
$10,000
$15,000
$20,000
In T
ho
us
and
s Annual RevenuesYear 1 $2.35 MYear 2 $14.36 MYear 3 $98.32 M
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EZsmartNet Income Over First 12 Quarters
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000Q
1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Q9
Q1
0
Q1
1
Q1
2
Annual Net IncomeYear 1 $309 KYear 2 $2.80 MYear 3 $29.7 M
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EZsmartValuing the Company
Company P/E Catalina Marketing 39.19ComDisco 7.83Dun & Bradstreet Co. 25.2InterPublic Group 40.63Reuters 24Sungard Data 33.43True North Comm 17.72
Median 46
Industry P/EComputer Services 55Bus Info Services 39Advertising 74
EZsmart P/EOptimistic 25Most Likely 10Pessimistic 5
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EZsmartValuing the Company
EZsmart P/E Year 1 Year 2 Year 3
Optimistic 25 $7.7 M $73.3 M $744 MMost Likely 10 $3.1 M $28.5 M $298 MPessimistic 5 $1.5 M $14.3 M $149 M
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EZsmartNeeded Funding
Round Date Funding OwnershipAngel December 2000 $50 K 30%Venture March 2001 $2 M 30%
Angel ROIOptimistic 1547%Most Likely 1114%Pessimistic 863%
Venture ROIOptimistic 386%Most Likely 268%Pessimistic 182%
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EZsmartFinal Overview
Great Product Uses
Great Strong Market
Great Financial Returns
$50,000
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EZsmartProduct D ifferentiation
M an u a l$ 0 .1 0 -0 .5 0
V id eo$ 1 .0 0 -2 .5 0
C D s$ 0 .6 0 -$ 1 .0 0
P erson a l$ 3 .0 0 -$ 5 .0 0
H ow -to -In s tru c tion s C os t
Manual Video CD’s Personal
Interactivity Level