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Empowering the next generation of builders Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to kids and.

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Presentation on theme: "Empowering the next generation of builders Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to kids and."— Presentation transcript:

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2 Empowering the next generation of builders Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to kids and their parents at home. John Galinato 617-875-1960 john@build-it-yourself.com www.build-it-yourself.com

3 Empowering the next generation of builders The Product Mission: Inspire and guide kids to use technology constructively, collaboratively and creatively. Invention Universe: An online environment for builders Parents pay a $20/mo. membership fee: - Access to project plans - Four live Webcast lessons/mo. - Online portfolio Empowering the next generation of builders ContentSpecialists Collaboration

4 Empowering the next generation of builders Product Differentiators 1) Multidiscipline - Attract broad range of kids 2) Build-It-Blocks (modular construction) - Build complex projects quickly 3) Collaboration with art and engineering students - Build mentor relationships Empowering the next generation of builders

5 Value Proposition Consistent, high-quality, high value technology instruction at a fraction of the cost of traditional instruction. Bring the university student TA (Teaching Assistant) concept coupled with proven content and online collaboration tools to kids online. Empowering the next generation of builders

6 Target Customers Boys and girls ages 8-13 interested in art or technology. Parents who want their kids to go to college and have disposable income. Skills exercised in a BIY workshop series: 1) Problem solving skills 2) Presentation skills Empowering the next generation of builders

7 Growth Plan Validate that parents value the Build-It-Yourself vision. Empowering the next generation of builders Grow the team and infrastructure to serve 3,000 members Partner with after school programs like Sylvan, Kaplan and Bright Horizons, publishers and retail outlets to grow quickly to 300,000 members. Proof of Concept $600K+ revenue 3000* customers 2012 Proof of Execution $540K revenue 3,000 members 2013 Rollout $72M revenue 300,000 members 2-4 years

8 Empowering the next generation of builders 1.3,000+ customers / 20+ schools 2.$200+ revenue per customer 3.$600,000+ revenue 4.6+ years in development 5.90% of business is recurring 6.15% of revenue is on-line. Empowering the next generation of builders Proof of Concept Phase - Validation

9 Empowering the next generation of builders Proof of Concept Phase - Validation Proven content and supporting platforms Empowering the next generation of builders 30 Projects 20 Lessons 100 Build-It-Blocks Record of attracting talent from the Cornell, MIT, Harvard and Mass Art communities. (24 contractors)

10 Empowering the next generation of builders Strategy: 1.Hire an MBA business developer. 2.Close corporate distribution partnerships that have the potential to generate 3,000 members in a year. (300K members @ $240/year in 3-5 years) Assets (2012): 1.Repeat customer base. (500 kids/yr. at $200/kid) 2.Content and supporting platforms. 3.Access to network of developers and Webcast specialists from Cornell, Mass Art and MIT communities. Empowering the next generation of builders Proof of Execution Phase - 2013 Grow from 500 to 3,000 members

11 Empowering the next generation of builders Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to kids and their parents at home. John Galinato 617-875-1960 john@build-it-yourself.com www.build-it-yourself.com

12 Empowering the next generation of builders Supporting Slides Empowering the next generation of builders

13 Value Proposition Cost of Instruction = $5/hr vs. $10+/hr in public schools. ($20/mo or $60/8-week project) 1 mentor serves 10 students / hr (ultimately 20 students / hr?) Revenue / hr = $50 (10 students x $5/hr) CofG / hr = $12 ($10/hr + $2/hr for mgmt) Gross margin = $38/hr or 76% Empowering the next generation of builders Test: Double the price (and reduce the customer base) to yield a better margin.

14 Empowering the next generation of builders How big is our market? College bound Kids: Every kid who goes to college should be technology fluent and therefore is a potential customer. 300K Members: We need 2% of target US market to build a $72M business. (300K x $240/yr including supplies and embedded advertising) Empowering the next generation of builders 30 million kids ages 8 - 13 15 million target market. Half will go to college. 62% have broadband access at home.

15 Empowering the next generation of builders Opportunity: 1.Summer Camps 7.3 Million Kids 2. After-school Time Organized by schools 2.5 Million Kids 3.After-school Time Organized by families 15 Million Kids Sources: American Camp Association Institute for Educational Science, US Dept. of Education Digest of Education Statistics: 2005 Assume 65% of kids can afford a computer and $240/year 15M Kids Market Segments 26,569 Schools 3M Kids 450K Kids (15%) 71,270 Schools 20M `Kids 5 largest for-profit organizations 160K Kids 2M kids (10%) 23 Million Kids Grades 3 to 8 @ Home Public After-school Private School Commercial After-school Public School Private After-school Summer Camps 12,000 Camps 7.3M Kids

16 Empowering the next generation of builders Proof of Concept Phase Proof of Execution Phase Roll Out Phase Strategic 2,000+ students paid $200+ for BIY workshops. ($10-$20/hr) Secure $100K investment. Grow from 50 on-line customers to 3,000 online members @ $10/mo. Grow from 3,000 online members to 300,000 online members. Show profitability. Infrastructure Content and supporting online platforms developed. Collaboration tools tested. Development team recruited. Develop Invention Universe to serve 3000 members. Develop program to recruit, train and manage webcasters in university communities. Expand content. Automate member support. Distribution Strong testimonials and repeat customer relationships built. Initiate viral marketing program. Close corporate distribution partnership > $50K Multiple distribution deals in place. 15 Milestones

17 Empowering the next generation of builders Investment of $105K is required to: Empowering the next generation of builders Proof of Execution Phase - Serve 3,000 members grow the team expand infrastructure develop distribution partnerships $540K annual revenue (3,000 members x $15/mo)

18 Empowering the next generation of builders The Team: We need to recruit, train and manage a network of 30 Webcast specialists. We need to recruit an MBA deal maker. Infrastructure: We need to automate and expand our infrastructure including our website. Proof of Execution Phase - Serve 3,000 members

19 Empowering the next generation of builders Proof of Execution Phase - Serve 3,000 members Viral Marketing Program: Recruit a social media person to drive a word-of-mouth marketing program. Corporate Partnerships: Close a corporate distribution partnership that has the potential to generate 3,000 members in a year. (300K members @ $240/year in 3-5 years) College Student Run Territories: College students are recruited to establish a BIY presence in their home towns.

20 Empowering the next generation of builders Revenue$156K - Online rev$84K - Onsite rev$72K Expense:$239K -Fixed cost$204K -Webcast cost$ 35K Worst case cash flow:($91K) Break even:Month 10 Capital Required$105K To grow from $15K => $360K annualized online revenue. Proof of Execution Phase - Serve 3,000 members

21 Empowering the next generation of builders Proof of Execution Phase - Serve 3,000 members Empowering the next generation of builders

22 Proof of Execution Phase - Serve 3,000 members

23 Empowering the next generation of builders Bob Sieple and John Galinato www.build-it-yourself.com 908-347-2193 / 617-875-1960 Investment of $1.5+ million may be required to: Empowering the next generation of builders Rollout Phase - Serve 300,000 members grow the team brand the product evolve the product and infrastructure develop distribution partnerships $72M annual revenue (300,000 members x $20/mo)

24 Empowering the next generation of builders Potential Distribution Corporate Partners After School Enrichment Sylvan Kaplan Bright Horizons Mad Science Publishing McGraw Hill Houghton Mifflin Penguin Sunset Marvel Comics Electronic Arts Retail Outlets Radio Shack Home Depot Walmart Build-a-Bear Computer Gaming / Entertainment Centers Microsoft Xbox Nintendo Wii

25 Empowering the next generation of builders Comps


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