San Diego Futures Foundation Presenting the DiverseCity Tech Program for Young Entrepreneurs October 2010

BACKGROUND DiverseCity Tech – Young entrepreneurs ages – Passionate about the web business and video production – Offering web development and – Video services to… Nonprofits Small, disadvantaged businesses “Our mission is to improve the prosperity of small, disadvantaged businesses and nonprofits through low-cost, high quality web solutions.”

OUR MARKET 56% of small businesses do not have a website 39% of searchers report not being able to find a known business In low-income communities it’s worse – 90% don’t have a website – 65% online directory – 25% no web presence at all Highly unmanaged

LOCAL SEARCH AND SMALL BUSINESS Local search is growing… – Mobile – Social – Local directories – Internet Yellow Pages – Search engines Local 20% of Google search Mobile 14% annual growth 37% percent visit the store Most effective combines traditional, mobile, directories, search, and social TMP Comscore, September 2010 Bigger than search engines

OUR MARKET Why? – Don’t know why I need one – Too expensive – Don’t know where too start – Too complicated Solution – Better marketing and education – Local, trustworthy vendor – Better mix of low-cost products and services...?

PRODUCT Local directories are used more than search engines for local search A trustworthy, local vendor is a good place to start and should not be complicated How do we differentiate? – Consumers like video – 35 billion videos watched per month – DTechs offer video… DIRECTORIES 35% SEARCH ENGINES 33%

PRODUCT toplocalspot.com – Video-enhanced local directory – Low-cost “website” for small business – Coupons and special offers – $0 - $500 annual subscriptions Trusted local vendor Good community partner Not complicated

SERVICES Low-cost web development Video production Managed presence Social account management Marketing Search optimization Reporting

MARKETING Develop relationships with Business Improvement Districts Small business leaders Conduct workshops, seminars and training Direct/door-to-door Yellow Pages

COMPETITION Traditional web developers Do-it-yourself websites and directories Small dev shops/consultants – Too expensive – Too complicated – Don’t know where to start – Don’t know why I need it!

STRATEGY FOR SUCCESS Passionate people Experienced management Quality service Community trust

2010 FINANCIALS $115,000 income – $40K earned 85% from nonprofits – $75K grants 20% growth over 2009 Current monthly “burn” ~$8-10K/mo.

WHAT DO WE NEED? Help with marketing to small businesses Top Local Spot – Development – Marketing – Scale?? Equipment

MILESTONES Two key measures of success – Earned Income $100K annual Covers all operating expenses Sustainable – Small business adoption 100 small business customers ~$500 each Scalable

ORGANIZATION San Diego Futures Foundation – Technology solutions provider – $1.8 million annual revenue – 20+ employees Jeff Hancock – Chief Operating Officer – 20+ years technology – Value-added reseller/dealer channel Now Hiring! – Advanced WEB/SEO/SMM Program Manager Stakeholders – ZeroDivide – Gary and Mary West Foundation Tech on SDFF’s Board

SUMMARY The message is not complicated – Local search is HUGE – No one has figured out how to serve the market – DiverseCity Tech offers low- cost, effective solutions – We’re in the community – We speak the language of small business