Digital agency services for SMBs & Startups

225 East Broadway, Suite V300

Glendale, CA 91205

Phone: (323) 813-1789

Email: info@uptica.com

http://uptica.com

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Vision

Uptica was created to help SMBs & startups understand the online world and optimize their investment in digital services.

Uptica enables their growth by offering simple, understandable, and transparent digital agency services.

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Uptica manages Digital experiences for SMB

Digital interactions with clients grow sales

Partnerships & Sponsorships

Present Future

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In Progress

The Founder

Matthew Hardesty

Hands-on experience providing all aspects of agency services.

• Ecommerce • inventory, purchasing, fulfillment, website design,

marketing, business development, ERP)• Improved business operations and efficiency for

Ecommerce retailers

• SEO/SEM• Experience leading strategy & managing client

website Search Engine Optimization and Search Engine Marketing campaigns.

• Creative• Web design (including responsive), video production,

audio production, print design, print industry experience,

• Project Management• Managed and launched digital projects across

multiple industries

• B.S. Business Administration

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Market Traction – Digital Interactions

Google reports that, in 2015, online interactions will continue to gravitate toward personalization and immediate availability of information.

Shawn DuBravac, CEA’s chief economist reported the upcoming importance of digital information as it relates to personalization, “They are able to give every consumer a personalized shopping experience thanks to the infusion of digital information…”

https://www.thinkwithgoogle.com/articles/ces-2015-recap.html

https://www.thinkwithgoogle.com/intl/en-gb/article/cea-chief-economist-on-2014-tech-trends-for-retailers/

• Must support growth of mobile interactions • 90% of consumers say it’s

important

• Reduce friction between browsing and action, regardless of device• 83% of consumers say it’s

important

• Support connected services & experiences• 84% of consumers use their

smartphones while shopping in store

• Improve personalization and availability of content• Highly recommended by

technology leaders like Google.Exact Target, 2014 Mobile Behavior Report

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Market Traction – Cloud Services

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PwC predicts that by 2016, investment in SaaS solutions will more than double to $78B

Cloud services offer cost savings to businesses. Growth of the cloud highly supported by key technology players:• Microsoft Azure• Amazon Web Services• Google Cloud Computing

While these services are available, SMBs and startups have limited technical ability to create new or migrate existing data to the cloud. They’ll need technical help.

Market Traction – Digital Marketing

Companies spend more on digital services year over year.

• On average, companies spent 10.2 percent of their annual 2014 revenue on overall marketing activities.1

• 80% of companies plan to increase their digital marketing budgets over the next 12 to 18 months. 2

1 http://www.gartner.com/newsroom/id/2895817

2 Mondo, The Future of Digital Marketing, 2015

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Will not increase, 20%

0-5% increase

7%

5-10% increase

32%

10-15% increase

26%

Other % increase

15%

Will Increase

ad budget,

80%

Change to 2015 Digital Advertising Budgets

Based on Mondo’s Jan 2015 report, The Future of Digital Marketing

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Market Opportunity

InfoUSA reports over 165k leads that meets criteria for a qualified lead:

• Employees: up to 49

• Annual revenue: up to $20m

• Advertising expense: $5-100k

• Location: LA / Orange County area

• Ownership: privately held

Among these leads:

• ~51k have an existing website

• ~1.3k are identified as a Growing Business

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Market Locality

Initially, Uptica will target the 165k leads in the surrounding area of Los Angeles and Orange County (seen in the map).

Because the nature of agency services requires only limited face to face interaction, Uptica has the option of targeting additional localities.

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Market Analysis

• Market• There is a defined need for SMBs to react to pressure from consumers to provide

a consistent experience and access to content from any device.• Key technology players, like Google, report rapid expansion and continue to

encourage involvement as a service provider through programs like Google Partners (for agency support) and tools like AdWords (for online advertising).

• Google not a competitor. They make money from ad spend & they help agencies get new business by providing training, insights, and marketing support.

• Competitors• Large Competitors

• Focus on winning and maintaining bigger clients, not as interested in SMB market

• Small Competitors• The most closely related agencies focus primarily on branding & creative. Many lack

engineering competencies associated with emerging technology (APIs, applications, integrations, cloud services, etc)

• Position• Few comparable competitors• Currently underfunded in this space

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Marketing Methods

I. Targeted Digital marketingI. Pay Per Click

I. LinkedIn (see example table)II. Google AdWords

II. Email MarkeingI. InfoUSAII. Chamber of Commerce

II. Existing clients & referrals

III. Phone calls

IV. Partnerships

V. Print Media (signage, flyers, etc)

Metric LinkedIn PPC

Cost Per Click $5.50

Conversion Rate (estimated)

2.5%

Clicks 1000

Total Cost $5,500

# of Conversions 25

Resulting revenue $40,000

ROI 627%

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Challenges for SMBsTo compete in an space with increasing digital focus, SMBs must:

1. implement and/or manage effective marketing & advertising plans

2. deliver highly personalized experiences

3. be device agnostic, and

4. foster immediate availability of information from consumers –regardless of the device they use to access it.

Common issues faced by owners of SMBs include deficiency in:

• Knowledge: Not enough knowledge or experience to execute effectively

• Time: Not enough time to do it with existing resources

• Tools: Lots of options and tools, but not sure where to start

• Budget: Limited budget to hire a team to manage internally

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ServicesUptica differentiates itself by providing a suite of services that enables SMBs and startups by connecting them with services and tools to predict, create, and manage digital interactions and personalization.

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Web, Mobile, & Ecommerce

• Build & customize websites, mobile applications, and eCommerceplatforms

• Create cross-device experiences

• Extend support/compatibility to other devices

• Set up bi-directional integrations with:• ERP systems like Sage and Dynamics• Sales management tools like Salesforce and Highrise• Accounting software like QuickBooks

• Create web & mobile Ecommerce storefronts

• Data migration

• Cloud services (website, application, hosting, utilities)

• Enterprise application setup (Google for Work, Microsoft Exchange / SharePoint / Dynamics)

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Digital Marketing

Manage / Create • Business Listings• AdWords accounts, campaigns• Digital media assets• Social media accounts• Blog posts & content• Email templates & drip campaigns• Landing pages

Develop digital marketing strategy & action plans

Analytics & reporting

Transparency

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Creative

• Print assets• Flyers• Brochures• Stationary

• Business Cards• Letterhead• Etc…

• Posters• Signage• Mailers

• Branding• Brand identity• Sound branding

• Video production • Planning / Storyboarding• Recording• Animation• Editing• Post-production

• Business Content • Article writing• Business plans• Market research• Reporting

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Revenue Models

1. Project Based1. Not recurring2. Fixed set of requirements

2. Digital Marketing1. Recurring Income2. Minimum duration & payment amount per month3. Type of effort may differ each month depending on the needs

of the client

3. Hosting / Services1. Recurring Income2. Contracted service cost per month over duration of contract3. Type of effort remains the same – will not change month to

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10 Year Portfolio Goals & Projections

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0%

20%

40%

60%

80%

1 2 3 4 5 6 7 8 9 10

10 Year Projection of % Total Revenue by Type of

Service

Per-Project Recurring Marketing & Advertising

Recurring Hosting & Maintenance

Revenue per Employee at Capacity

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$(8,000.00)

$(6,000.00)

$(4,000.00)

$(2,000.00)

$-

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Revenue per Employee for 36 billable hours/wk

Revenue per Employee

1:6 – 1:7 Employee to Client Ratio Goal

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-

20

40

60

80

100

120

Employees Required by Client Volume

# of employees required # clients

Salary Efficiency Projections

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-35.0

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Measure of excess / deficiency in resource expenditures vs # of clients

Ratio

Financial Projection – Net Income vs Volume

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($15,000)

$10,000

$35,000

$60,000

$85,000

$110,000

$135,000

$160,000

$185,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 45 50 75 100

Income Projections based on Concurrent Client Volume

Net Monthly Income Monthly Project Income Total Expense

Investment Considerations

Founder Involvement• Expenses

• Legal

• Hosting

• Tools

• Subscriptions

• Effort• Personal investment of time

• Creation of all content (text & media)

• Design & Branding

• Existing Assets• Branding & website assets

• CMS system, theme, plugins

• Virtual Office

• Online properties

• Business listings

• Configured services

• Management & Operations

Outlook & Ability

• Solid business plan

• Developed plans & projections

• Experience in this line of work

• Dedication to the brand & company success

• Proven business model

• Potential for attractive ROI1/23/2015 © 2015 Uptica 24