San Diego Futures Foundation

Presenting the DiverseCity Tech Program for Young Entrepreneurs

October 2010

BACKGROUND

• DiverseCity Tech– Young entrepreneurs ages 18 - 24– 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