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Posts Tagged ‘Internet Business’

Bizak Auction

December 12, 2008 Leave a comment

Bizak is currently up for auction on SitePoint. Any interested parties can bid directly on the site or contact me (617-947-8071 or email) for additional information.

Auction URL:  http://marketplace.sitepoint.com/auctions/53150

Financing Boston Startups

In addition to creating our own startups (Bizak) we at TOKiBiz also work with entrepreneurs to help them create a profitable internet business.  TOKiBiz helps entrepreneurs create ideas into business.  This includes developing the business model, the revenue model, building the application, creating a design, building a brand and designing the logo.  

Then when all of these steps are completed we’re ready to launch the application. Unlike most firms, TOKiBiz then helps the entrepreneur run their internet company. This can be anything from just an advisory role to being the people running the show – as is the case with infoMedMD.  With infoMedMD we helped the founder create the idea into a brand, then a website and then into a business.

With our recent launches we at TOKiBiz are looking to expand our services to other entrepreneurs, continue development of in house applications and offer new services such as internet & video marketing.  Right now we at TOKiBiz are looking for investors to help us help entrepreneurs, in return giving you an equity stake in every project that we work on.  An equity stake in not just one company, but all of the great ideas coming out of Boston and the country.  

If you’re interested in investing in TOKiBiz, Inc. please email Tom (via Bizak email form) or call Tom O’Keefe at 617-947-8071.  Tom O’Keefe and TOKiBiz, Inc. are located in Boston, Massachusetts.

The Value of A Business Idea

July 9, 2008 1 comment

How much is my idea worth?  For startups seeking seed financing your initial business valuation is essential and very difficult to answer.  For those not seeking financing then your initial valuation can wait until analytics and revenues determine it for you.  For most ideas the initial value doesn’t necessarily come from the idea itself but the team behind that idea.  Many of us have similar ideas but the real value comes in how that idea is executed.  The more experience the team has the more likely they’ll have a successful execution – even if the idea isn’t earth shattering.  For many ideas aren’t earth shattering, however the most successful ones provide a simple solution to a common problem.

With all that said many startups still need to create a valuation for angel investors.  In order to determine how much equity to sacrifice you need the valuation.  If you’re valued at $100,000 then an investment of $10,000 will cost you 10% in equity.

Most of the essential parameters (revenues & traffic) for determining valuation are unknown when a business is just an idea.  It’s because of these unknowns that Bizak was launched to give entrepreneurs a better understanding of the industry they’re looking to enter.  Bizak does this by giving you the average, high and low for visitors, costs, CPV, revenues, RPV, earnings, EPV and business valuation.  All of these parameters can then be sorted according to industry, business type, revenue source and any combination of the three.  

For example, if you’re an entrepreneur looking to launch an e-commerce site the Bizak benchmark’s will tell you that e-commerce sites have average monthly traffic of 131,204 visitors, with earnings of $18,066.67, an EPV of $5.27 and an average valuation of $2.2 Million.  Of course this is an average so there are some that do much better then the benchmarks and others who do a lot worse.  Where do you fit in?  

Another potential way to value your business is to stick with what you know.  You have absolutely no clue what your revenues or traffic will be.  You can guess, and a lot of business plans are guesses, but the truth is until you launch you have no idea if people will respond to it or not.  What you do know is what your first year costs will be.  You know how much your application will cost to build, how much you want to spend on marketing and you know (in most cases) how much your servers will cost.  Add those costs together and you now have a total for first year costs.  Use the Bizak Calculator to estimate how much traffic it will take to break even with an EPV of X amount.  If you anticipate being profitable the first year then you need revenues to be greater than your costs.  So, say you’re first year costs will be $500,000.  In order to break even you need revenues of $500,000 which gives you a $1.5 million valuation.  

Of course the higher your costs doesn’t mean the more revenues you’ll generate but you need to start somewhere.  However, if you get 10 experts in a room it’s likely that none of them will come up with the same valuation.  In the end what it all comes down to, after all the speculation and fancy charts, is what you’re willing to give up and for how much.  If you don’t think the terms are fair then chances are they’re not.

Internet Startup Comparison Charts & Benchmarks

April 30, 2008 Leave a comment

Comparison Charts

Bizak launched its beta site on Tuesday April 29, 2008.

Bizak is currently in beta allowing startups to contribute their projects for computing profitability.  Once enough data has been aggregated then the comparative benchmarks will be available to both startups and investors.

Startups Registration

http://www.bizak.com/startups/register

Comparative Analysis on Bizak.com

After many long months Bizak is almost ready to launch. We just finished our comparative analysis page (click image below for screen shot) and we will be opening up our tools for startups shortly. After a few weeks of data aggregation we’ll be opening up the site to investors and professionals.

Questions? Please feel free to contact me.
Link? www.Bizak.com
Spread the word!

Creating Ideas Into Business

March 19, 2008 2 comments

TOKiBiz Green Logo

TOKiBiz (617-947-8071) helps entrepreneurs create ideas into business. We have partnered with a leading designer and a leading developer to help entrepreneurs convert their ideas into profitable internet companies. Unlike a typical web design firm we don’t just create websites but rather we create companies – developing your website is just one of the steps.

Everyone has ideas but how to create those ideas into an internet application is the difficult part. Creating that idea into a solid brand and profitable business is the very difficult part.  What we at TOKiBiz (617-947-8071) do is take an active role in every step of your business. The first step is your idea. TOKiBiz receives numerous requests to create ideas into business but the truth is we turn down the vast majority of them. We only partner with ideas that can be monetized and created into solid business models. This does not include placing Google Adsense on the site and praying that someone buys you out before the money runs dry. Google Adsense is not a business model.

Once we determine your target market and whether that market will pay for your services we then sit down with you to move forward from there. The next step is to lay out the plans for the online application and building the brand. Once we have scoped out all the technicals we then get to work building the site, creating the design and ultimately creating your idea into a brand and a logo. It’s amazing how a logo can transcend an idea into a brand.

Most firms stop here (and don’t care if a website makes money) but this is how TOKiBiz differs from a design firm. The business plan, revenue stream, the brand and the online application is just the beginning. Once these steps are completed you have a business to run and this is what we do best! From here TOKiBiz helps you run the daily essentials of an online business. This can include absolutely anything – talking to clients, online marketing, partnerships, public relations, quick responses to customer emails (essential) and much more.

By becoming a founding partner in your business we have a vested interest in the profitability and success of your application. We don’t just create your website, collect payment and leave.  TOKiBiz helps you run your online business to maximize revenues, traffic and corporate partners.

Benchmarking Web 2.0

March 15, 2008 Leave a comment

Bizak Screen Shot

Well, after many months of development (and 2 months behind schedule) Bizak is soon set to release. The screen shot above gives you an idea of what Bizak looks like. The text below gives you an idea on what it will accomplish. To receive an invitation to our launch please click the link below:

Request an Invitation to Bizak’s Launch

www.Bizak.com

Entrepreneurs use Bizak to calculate the profitability of their business according to website analytics and key performance indicators. With visitors, revenues and costs data, Bizak automatically computes revenues per visitor (RPV), costs per visitor (CPV), earnings (profit/loss), earnings per visitor (EPV) and valuation (The Bizak Estimate.) Each one of these calculations can then be compared to other startups and industry benchmarks. With these calculations entrepreneurs are then invited to join Bizak’s elite network of investors and business professionals who are eager to invest in your profitability.

Investors use Bizak to discover new investment opportunities. From the calculation of comparative benchmarks investors can evaluate the earnings potential of startups in comparison to their competitors and industry. The Bizak Estimate gives investors an approximate valuation of internet startups based on revenues, traffic and EPV. This valuation can then be compared to other startups and the industry mean. Investors can also quickly calculate high and low valuations from a range of revenue multipliers.

Professionals use Bizak’s comparative traffic analysis to discover new advertising and business opportunities. With Bizak professionals can target business partners according to industry, application type and revenue source. Startups can then be sorted and compared according to traffic, revenues, RPV, costs, CPV, EPV, earnings and the Bizak Estimate. Click on a specific company and it will provide you with their business summary, contact information, and monthly results.

Bizak is a TOKiBiz