Online DVD, Game & Audiobook Rental Startup
| Listing Information | |||
|---|---|---|---|
| Amount: | $5,000.00 | Status: | Loan created |
| Grade: | D | DTI: | 13% |
| Lender Rate: | 16% | Borrower: | rowdyrobot |
| Finished | State: | UT | |
| Funded: | 100% | Group: | Bay Area Techies |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2006-12-20 | EricsCC ROI: | 12% |
| Status History | |
|---|---|
| Dec 20, 2006 | Current |
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Hello, I live in Draper, Utah and am in the process of starting up a new business. This business will be an online dvd, game & audiobook rental venture. However, unlike current models that utilize the postal service for their media delivery, I am putting together a system that allows for localized warehousing with route delivery to customers on a daily basis (sundays excluded). Custumers will supply or can be supplied with a lock box that will be placed on their porch for rental delivery and pickup. The key to success with this model is through what I call 'community clusters'. Each cluster is concentrated in a small area or community. Marketing and membership sales will be defined for that area only. As growth occurs, new communities will be opened and expansion is inevitable. Although our turnaround time will be less than 24 hours unlike 2-5 days with the competition we will not be a 'pizza delivery' model either. Orders are not fulfilled on a whim but instead a midnight cutoff time will allow members to receive movies that morning. I am working with a skilled web developer that has extensive business experience. The online system will not only provide the front end magic you see with other online rentals but will also incorporate a barcoding (possible rfid) system for speedy check outs and check ins of media from 12am-2am. Route drivers will then deliver and pickup the media between 2:30am and 7:30am. Finally, check ins will occur once the drivers return between the hours of 8am-10am. Overhead is relatively low as a retail storefront is not required. I am looking to get between $5,000 - $15,000 for initial pre-startup requirements. These include the web and warehouse software and infrastructure as well as some advance pre-marketing in several hand picked communities. I have $50,000+ in equity that I intend to use for inventory and the actual startup but need some initial funding to get the basic infrastructure in place. Also, in regards to my credit, I am in the process of removing an erroneous 30 day late on my previous mortgage. I refinance a couple months ago and the title company dropped the ball and lost the check to the mortgage company. By the time I caught the error and had them compose a letter for me for the credit agencies, the late had already been reported by the previous mortgage company. This was not my fault and I have a letter from the title company responsible stating as such. Once this is removed I am sure that my rating will jump up to a 'C' rating. Just so you know. Although this venture is starting in only a couple communities the idea is to expand nationally and the overall goal is to have a 'doorstep entertainment box' on every porch. Net profits with just one community of 500 members would be in the $3,000-$6,000 range per month. I would very much enjoy the support of your group in making this dream a reality. Should you have any questions at all, please feel free to contact me at anytime. Thank you for your time. I hope to hear from you soon. Regards, JP in Utah |
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