Introduction
Welcome to the investor introduction for AllTravels.com. I’m John Pyle, an Australian based Web Developer and Search Marketing Specialist, and the owner of the alltravels.com website. I’ve been involved in online travel for some time, I own, and am developing one of the best undeveloped brands in one of the world's biggest and fastest growing industries, online travel.
The AllTravels mission statement is: "To become a useful part of the online travel ecosystem, and to empower both our visitors and our customers". To that can be added "and to make a lot of money while doing so".
AllTravels [www.alltravels.com/about] has huge potential but while the basic framework has been built it’s till very much a “Garage Project” and a lot of work is required to take it to the next stage. The current development framework has been built by one person, myself, and while I’m happy with the results to date a small web development team is required to finish developing the site.
Besides the web development team it’s time to start thinking about forming the company and a management team. Although I do have business experience, especially in online travel, I do not have the managerial experience required to operate a company of the size that AllTravels will become.
Brand & Strategy
The main advantage AllTravels has is the brand. The online travel industry, while large, expanding and lucrative is very competitive and becoming more so every year. The brand is becoming ever more important as the market is finding it ever harder to distinguish between all the travel sites out there. A brand name must have a dot.com address and alltravels.com is one of the last great undeveloped dotcom addresses in this industry.
Other individual components of our overall strategy are also not uncommon by themselves, but they combine to give AllTravels a strong competitive edge. The first is to locate the operations base in India, specifically in the Bangalore region. The second is to register the company offshore, probably in the Seychelles.
The combination of low costs and low taxes will enable AllTravels to sell travel products at prices that the majority of our competitors in high cost and tax regions cannot. Online travel consumers have access to powerful tools which enable them to search for the best deal; they usually buy from whoever is offering the best price. This is no problem for AllTravels.com, in fact when the company is registered and located as per the strategy above it’s to our advantage.
Current Requirements
I have in the past used the services of a business consultant to plan a growth strategy so I do have a basic business plan and three year financial projections. The growth strategy is a common one and well proven. It calls for three phases of development, an incubation period, a rollout phase and an expansion phase.
What I’m looking for right now is financing for the initial incubation period, seed funding in the form of an equity investment. This money to be used for establishing the company, finishing the website, and fully developing the business plan for the second growth phase. The incubation period is expected to last six months.
How Much Money Is In It?
Initial three year projections based on my own experience in this industry show a return of over $12,500,000 in the third year, that’s a minimum of $125,000 per point to the company owners.
| |
Year One |
Year Two |
Year Three |
Sales |
981,100 |
7,074,500 |
18,437,000 |
COGS |
357,500 |
1,740,500 |
3,375,000 |
Gross Profit |
623,600 |
5,334,000 |
15,062,000 |
Total Expenses |
627,000 |
1,399,200 |
2,376,000 |
Net Profit |
-3,400 |
3,934,800 |
12,686,000 |
In fact this projection is very, very conservative, online travel companies such as Travelzoo [Travelzoo.com/earnings] report about $20 Million per quarter but it’s all I can defend without a lot more research, testing and number crunching. Financial modelling is an important part of the incubation stage.
How Much Investment Is Required?
At current valuation a percentage point of ownership in Alltravels.com is valued at $15,000, and there is a maximum of 10% available at this time and price. At the next stage there will also be a maximum of 10% available, and a share will be priced at ten times (10x) the first round price.
I’d prefer to sell to a single investor but can easily split the above into two 5% shares. A five percent share in AllTravels would cost $75,000 at this time and return a minimum of $625,000 in three years.
If you know of better investment than this please let me know, if not please contact me to ask for more details.
How To Proceed?
To initiate a discussion please send me a message via e-mail.
Yours Sincerely
John Pyle
Owner: AllTravels
E-Mail: email@alltravels.com
