Online Payment Services
Online Payment Services
Exactor Technologies, LLC
980 Floridian Way
Orlando, Florida 32812
In 2006, Exactor Technologies, LLC was formed for the purpose of selling money orders and payment methods for online customers. Overall, our company can be characterized as a money service business. Our website allows buyers to send sellers money orders and payment methods online for auction payments using a Visa or MasterCard. We act as a middleman to facilitate this process easily, safely, and securely.
Exactor Technologies, LLC's Mission is to provide innovative, practical and top-quality payment services that save time and improve the way people transact online. We believe our first responsibility is to the users who use our services. Our strong financial position will enable us to provide excellent customer service. In carrying out our day-to-day business we strive to:
- Treat our employees with respect.
- Follow the philosophy that our customers are the lifeline of our business model.
- Be considered as a moral and ethical leader in our community.
We envision our business becoming a dominate online payment method in the next 3 years. Within the next 10 years, we envision our company being publicly traded on a stock exchange. By 2010, Exactor Technologies, LLC will be a highly visible company known as the best payment method online.
For many years people have been limited to only one large company in this field—PayPal—and several other small companies that have included BidPay, StormPay, EMOCorp, and eGold. This small number of choices has been further limited for online merchants and consumers since the closure of both BidPay and EMOCorp.
The condition of the industry today is such that the Internet is becoming an integral part of people's daily lives and a tool for the development of the global economy. Online merchants have become the standard as well and norm for business startup and expansion of existing retailers.
We have just started development of a novel and proprietary website to integrate with online auction and merchant services such as eBay, Yahoo, Overstock, and other corporate websites to facilitate the selling of money orders and payment methods for online transactions.
The legal form of Exactor Technologies, LLC is Limited Liability Company residing in the State of Florida with Registered Agents in other states as required by Law. An LLC is suitable for smaller companies with restricted numbers of owners; furthermore, company "members" are protected from liability for acts and debts of the LLC and an LLC can elect to be taxed as a sole proprietor, partnership, S-corp, or corporation, providing much flexibility.
Now, Exactor Technologies, LLC is at a point where we are looking for investors in order to meet State requirements of $500,000 liquid assets to obtain a Money Services Business License in the State of Florida.
Revenue projected for fiscal year 2007 without external funding is expected to be $5,475,000. Annual growth is projected to be exponential and at least double per year through 2009. We feel that within 4 years Exactor Technologies, LLC will be in a suitable position for further expansion and an initial public offering. Our objective at this time is to propel the company into a prominent market position.
According to the opportunities and requirements for Exactor Technologies, LLC described in this business plan, and based on what we feel are sound business assumptions, our initial capital requirements are for $500,000 by November 1, 2006.
To accomplish this goal we have developed a comprehensive plan to intensify and accelerate our marketing and sales activities, product development, services expansion, engineering, distribution and customer service. To implement our plans we require a loan or investment totaling $500,000 for the following purposes:
- Obtain a $300,000 bond for a State Money Services Business License,
- Maximize sales with an extensive click-based online advertising campaign to promote our services,
- Reinforce Customer Support services to handle the increased demands created by the influx of new orders and broader coverage of existing accounts,
- Augment company staff to support and sustain prolonged growth under the new marketing plan,
- Increase Research and Development to create additional follow-on products as well as to further fine-tune our competitive advantages.
We anticipate no additional investment requirements after the 2007 fiscal year. We pledge to reinvest all corporate profit minus employee salary and wages back within the company until year 2010.
The increase in profits generated by our website will allow us to have the funds to repay any loan and investors within 1-2 years.
|PayPal (standard rates)||U.S. domestic transactions (U.S.-U.S.)||International transaction (U.S.-Foreign country)|
|Fees to deposit/send money (buyer)||Free||Free|
|Fees to receive money||2.9% + 30 cents||3.9% + 30 cents|
|Storm Pay (non NetIBA rates)||U.S. domestic transactions (U.S.-U.S.)||International transaction (U.S.-Foreign country)|
|Fees to deposit/send money (buyer)||3%||3%|
|Fees to receive money||6.9% + 69 cents||6.9% + 69 cents|
Our Proposed Fees
|Exactor Technologies LLC proposed rates||U.S. domestic transactions (U.S.-U.S.)||International transaction (U.S.-foreign country)|
|Fees to deposit/send money (buyer)||6%||6%|
|Fees to receive money||3% + 84 cents to mail/print money order||3% + 84 cents to mail/print money order|
|Stationery etc.||$ 100|
|Research and development||$ 0|
|Expensed equipment||$ 500|
|Total start-up expenses||$1,625|
|Start-up assets needed|
|Cash balance on starting date||$ 425|
|Other current assets||$ 0|
|Total current assets||$ 425|
|Long-term assets||$ 0|
|Total assets||$ 425|
|Accounts payable||$ 0|
|Current borrowing||$ 0|
|Other current liabilities||$ 0|
|Current liabilities||$ 0|
|Long-term liabilities||$ 0|
|Total liabilities||$ 0|
|Loss at start-up||($1,625)|
|Total capital||$ 425|
|Total capital and liabilities||$ 425|
|FY 2006||FY 2007||FY 2008|
|Current interest rate||10.00%||10.00%||10.00%|
|Long-term interest rate||10.00%||10.00%||10.00%|
|Sales on credit %||75.00%||75.00%||75.00%|
|Projected profit and loss|
|FY 2006||FY 2007||FY 2008|
|Direct cost of sales||$ 6,598||$11,997||$12,477|
|Total cost of sales||$ 6,598||$11,997||$12,477|
|Gross margin %||86.67%||86.67%||86.67%|
|Payroll||$ 0||$ 0||$ 0|
|Sales and marketing and other expenses||$ 2,475||$ 4,500||$ 4,680|
|Depreciation||$ 0||$ 0||$ 0|
|Leased equipment||$ 0||$ 0||$ 0|
|Utilities||$ 1,500||$ 125||$ 125|
|Insurance||$ 1,800||$ 2,000||$ 2,200|
|Rent||$ 5,100||$ 5,100||$ 5,100|
|Payroll taxes||$ 0||$ 0||$ 0|
|Total operating expenses||$10,875||$11,725||$12,105|
|Profit before interest and taxes||$32,027||$66,278||$69,018|
|Interest expense||$ 0||$ 0||$ 0|
|Taxes incurred||$ 8,008||$16,570||$17,542|
Most of our management team is in place; however, we require contractual customer service through an off-shore company to offer our customers online technical support. Our management team consists of: Jim Nash, President; Elisha Violet, Vice President of Legal Services; Jonathan Winston, Vice President of Finance; and Eileen Mary, Vice President of Operations.
Jim Nash, President
Develops and maintains the vision of the company. Oversees marketing, product development, production and finance, customer service, etc. Approves all financial obligations. Seeks business opportunities and strategic alliances with other companies and organizations. Plans, develops, and establishes policies and objectives of business organization in accordance with board directives and company charter. Directs and coordinates financial programs to provide funding for new or continuing operations in order to maximize return on investments, and increase productivity.
Jonathan Winston, Vice President of Finance
Manages working capital including receivables, inventory, cash and marketable securities. Performs financial forecasting including capital budget, cash budget, pro forma financial statements, external financing requirements, and financial condition requirements.
Eileen Mary, Vice President of Operations
Directs manufacturing, raw materials procurement and management, field service, repair, and shipping/ receiving function. Oversees the company's facilities.
Elisha Violet, Vice President of Legal Services
Manages all legal matters pertaining to the company.
Board of Directors
An outside Board of Directors, including highly qualified business and industry professionals/experts, will assist our management team in making appropriate decisions and taking the most effective action; however, they will not be responsible for management decisions.
One thousand (1,000) shares of Exactor Technologies, LLC common stock has been authorized by the state of Florida. At this time 7,500 shares are outstanding, and have been allocated as shown below.
- Jim Nash, President—70%
- Elisha Violet, Vice President of Legal Services—10%
- Jonathan Winston, Vice President of Finance—10%
- Eileen Mary, Vice President of Operations—10%
Stock vests over 3 years from the date of employment. In addition, we plan to allocate 2006 shares of common stock for Employee Incentive stock options.
Exactor Technologies, LLC currently offers the ability for buyers to purchase money orders and payment methods online via www.ExactorTechnologies245.com. Our website implements integration with popular auction websites such as www.eBay.com, www.Yahoo.com, www.buysell-biz.com, and www.icibusiness.com, and also allows integration with other third party company websites.
Our website is currently in the testing and development stage.
Research and Development
In response to demonstrated needs of our market, new services are being developed to include improved wireless/mobile access, multiple languages, multiple currencies, non-auction money order sales, ACH transfers, and debit cards for instant access to cash. These new services are especially useful to customers who currently use our competitor's services. ACH transfers are especially useful to prospective PayPal and StormPay customers who can deposit funds into their bank account(s) without physically depositing a check/money order. Launches are scheduled to be deployed incrementally beginning with multiple language websites in late 2007.
Production and Delivery
The key factor in our services is the ability to maintain a large database online and handle thousands of simultaneous transactions quickly, effectively, and safely. Our website is being developed by an experienced off-shore Internet technology company located in India. Our website is being hosted in the United States with OLM on a cluster of Microsoft Windows 2009 Internet Information Servers hosting Microsoft SQL Server and Exchange Server. In addition we will be adding Oracle's newest server security to give us 400 Bit protection. By comparison, most banks now use 128 Bit protection.
Because of the anticipated rate of growth, we will need to expand our bandwidth and processing power by 2009, and will consider seeking a larger company to accommodate our growing technology needs. Our biggest advantage is our modular code that allows easy mobility to new technology platforms.
We anticipate that a significant amount of our transactions will be from eBay and third party websites. Statistics show that eBay averaged 15 million listings per day in 2006. Statistics also show that 28% of all eBay listings are completed and that the average aggregate selling price is $14 per item.
The e-commerce market is growing rapidly. There is an important need for companies to facilitate online transactions in a simple, safe, and secure manner. Currently, the market distribution is shared by two major companies, with PayPal considered the market leader. Statistics show that "PayPal has over 56 million accounts and more than 53,000 people who sign up for new access every day. PayPal deals in transactions totaling over $48 million in sales per day."
Exactor Technologies, LLC's target market includes eBay sellers and website operators. The typical customer of our products is someone who purchases products and services from online auction websites and online stores.
Companies that compete in this market are PayPal and StormPay.
All companies charge competitive rates.
Key factors have resulted in the present competitive position in the industry.
The ability to offer better rates to customers is contingent upon relationships with processing banks.
|Pro forma cash flow|
|FY 2006||FY 2007||FY 2008|
|Cash from operations:|
|Cash sales||$12,375||$22,500||$ 23,400|
|Cash from receivables||$28,868||$60,744||$ 69,599|
|Subtotal cash from operations||$41,243||$83,244||$ 92,999|
|Expenditures from operations:|
|Cash spending||$ 2,548||$ 4,029||$ 4,184|
|Payment of accounts payable||$19,898||$34,498||$ 37,756|
|Subtotal spent on operations||$22,446||$38,527||$ 41,940|
|Net cash flow||$18,796||$44,717||$ 51,060|
|Projected balance sheet|
|Assets||FY 2006||FY 2007||FY 2008|
|Accounts receivable||$ 8,258||$15,014||$ 15,614|
|Other current assets||$ 0||$ 0||$ 0|
|Total current assets||$27,479||$78,952||$130,612|
|Long-term assets||$ 0||$ 0||$ 0|
|Accumulated depreciation||$ 0||$ 0||$ 0|
|Total long-term assets||$ 0||$ 0||$ 0|
|Liabilities and capital|
|Accounts payable||$ 3,036||$ 4,800||$ 4,984|
|Current borrowing||$ 0||$ 0||$ 0|
|Other current liabilities||$ 0||$ 0||$ 0|
|Subtotal current liabilities||$ 3,036||$ 4,800||$ 4,984|
|Long-term liabilities||$ 0||$ 0||$ 0|
|Total liabilities||$ 3,036||$ 4,800||$ 4,984|
|Paid-in capital||$ 2,050||$ 2,050||$ 2,050|
|Retained earnings||($ 1,625)||$22,393||$ 72,102|
|Total liabilities and capital||$27,479||$78,952||$130,612|
Our strategy for meeting the competition is offering a seller-oriented service. We guarantee no charge backs and guarantee delivery of funds. We also offer live online technical support, a feature our competitors lack.
The top business risks that Exactor Technologies, LLC faces as it begins to enter the payment processing market are liquidity to cover rolling banking balances, website malfunctions and sabotage, compliance with state and federal laws, and maintaining a good working relationship with our processing banks and Visa/MasterCard.
MARKETING & SALES
Inquiries from prospective customers suggest that there is considerable demand for our services. Relationships with major banks and payment processors substantiate the fitness of Exactor Technologies, LLC for considerable growth and accomplishment in our industry.
Exactor Technologies, LLC's marketing strategy is to aggressively enhance, promote and support the fact that our services are seller-oriented, closely integrated with major auction websites, integrate easily with e-commerce websites, and are safe.
We plan to partner with an insurance company to offer Personal Property Protection for buyers to guarantee their online safety and equitable right to their products. It will also give us the ability to offer extended warranty coverage for products purchases through our website. We can generate lucrative commissions based on these partnerships.
Our advertising and promotion strategy is to position Exactor Technologies, LLC as the leading service provider in the market.
We will utilize the following media and methods to drive our message home to our customers:
- Free news coverage
- Talk show freebees
- Google Adwords
- Auction site banners
- Referral credits
- Auto surf marketing
- Aggressive search engine placement
For the next 12 months, advertising and promotion will require $500,000. On an ongoing basis we will budget our advertising investment as 5% of total sales.
During 2006, Exactor Technologies, LLC will promote our service at major technology conferences such as eBay Live, CeBit, E3, and Comdex.
We will track, wherever possible, the incremental revenue generated from our advertising, promotion and publicity efforts.
In order for Exactor Technologies, LLC to attain its vision in the manner described in our mission statement, the following primary strategic goals need to be achieved:
Corporate: By 2010 Exactor Technologies, LLC will become a publicly traded company.
Products: By 2008 Exactor Technologies, LLC will develop a method for users to access their cash via any ATM machine worldwide.
Sales: By mid-2006 Exactor Technologies, LLC will be offered as a payment method on thousands of users' eBay auctions and e-commerce vendor websites. We anticipate that our first 5 years of growth will be exponential.
- For 2006 total sales will exceed $5,750,000.
- For 2007 total sales will exceed $15,000,000.
- For 2008 total sales will exceed $30,000,000.
- For 2009 total sales will exceed $65,000,000.
Other major goal(s) to include:
- Understand customers, competition and industry
- Growth by fields of interest
- Balance people/management/business goals
- Operate at 50 vs. 5 employees
- Develop values and culture
We feel confident that the above goals can be reached. Two of our managers come from environments where they experienced managing a rapid growth high-tech development team.
During the next year, Exactor Technologies, LLC's organization will carry out the following specific objectives:
- Launch online November 1, 2006.
- Offer our website in multiple languages by January 1, 2007.
- Offer ACH transfers by March 2007.
During the next year in order to help attain the primary goal of offering our website in multiple languages, Exactor Technologies, LLC's organization will carry out the following objectives:
- Seek out and foreign language specialists by November, 2006.
- Provide beta testing of foreign language sites by December, 2006.
Exactor Technologies is working to form some very important relationships with major companies in the banking and insurance industry. Joint marketing with established companies will produce revenues, credibility, and market presence.
Exactor Technologies, LLC is pursuing joint marketing agreements with other organizations to further the name of Exactor Technologies, LLC's products in the banking market. Our plans include having them market or sell our products within their product line.
Exactor Technologies, LLC currently has a joint marketing relationship with Mastercard, Visa, and American Express, and we are in the process of engaging in agreements with major banks.
On paper, we are guaranteed to make money. Doing the math, if we only take between 0.5% to 1% of eBay's daily transaction, we will make a significant profit within the first year.