carto inc

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© 2008 CARTO INC.

CARTO COMPANY BUYER SERVICES SELLER SERVICES HELP

About Art Directory Membership Plans Contact Us

People Satisfaction Guarantee Artist Community Password Recovery

Media Returns Policy FAQs Suggestions

KEYWORD SEARCHADVANCED

TERMS OF SERVICE | PRIVACY POLICY

CARTO

PRESENTED BY

Connie Chang, Founder and CEO

Kemp Edmonds, Financial Advisor

Paul Shorthouse, Technical Advisor

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© 2008 CARTO INC.







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© 2008 CARTO INC.







Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Connie Chang

– BCIT Marketing Management Entrepreneurship

Diploma

– UBC Bachelor of Arts Degree in Art History

– BCIT Practicum at Heffel Fine Art Auction House

as a sales assistant

– Volunteered at Vancouver Art Gallery for two

summers

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• CARTO: Community Art Online

– Internet-based service

– Connects local artists with buyers

– Revenue from membership and commission

– Incorporated in November 2008

– Positive cash flow after 18 months

– Great growth potential

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Global

– Soaring popularity of contemporary art and

photography

– Total market size: $4.15 billion

• 56% of artwork under $2,000 = $2.3 billion

• Metro Vancouver

– Canada’s art centre

– The Cheaper Show

• 75 local artists sold $24,000 in 4 hours

• 85% of artists have no gallery representation

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Art school students

– 40 art schools in Lower Mainland and Vancouver

Island

– Total artists = 25,000

• Independent artists

– Total population of Metro Vancouver, Gulf

Islands, and Southern Vancouver Island = 3.2

million

– 4% work in recreation, arts, and cultural sectors

– Total artists = 128,000

Agenda

Introduction

Market

Competition

Service

Financials

Marketing

Conclusion

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© 2008 CARTO INC.







Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

Group % of Households Annual Income

Daytrippers &

Nightowls

9%

(80,896)

$52,036

Grads & Pads 7.2%

(64,717)

$54,349

Electric

Avenues

3.4%

(30,561)

$78,357

Young Digerati 2.6%

(23,370)

$112,613

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© 2008 CARTO INC.







• Product/Service Essentials

– Satisfaction guarantee

– Secure and confidential

– Attractive and user friendly

– Value

• Regulatory/Legal Essentials

– Terms of service

– Privacy policy

– Intellectual property rights

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Multi-tactic marketing plan

• Word of mouthAwareness

• Go to the site

• Read reviewsInvestigation

• Add art to shopping cart

• Decide to check-outPurchase

• PayPal

• Complete after return period over Payment

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

WebsiteAnnual

FeeCommission

Community

FocusAppearance

www.yessy.com No Unattractive

www.boundlessgallery.com No Attractive

www.originalartonline.com No Unattractive

www.artflock.com Some Attractive

www.artistrising.com No Attractive

www.etsy.com Some Attractive

www.craigslist.com Yes Unattractive

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© 2008 CARTO INC.







Featured artists

Good search criteria

30-day trial period

Cluttered

Bad colours/fonts

Inaccurate information

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© 2008 CARTO INC.







Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

WebsiteAnnual

FeeCommission

Community

FocusAppearance

www.yessy.com No Unattractive

www.boundlessgallery.com No Attractive

www.originalartonline.com No Unattractive

www.artflock.com Some Attractive

www.artistrising.com No Attractive

www.etsy.com Some Attractive

www.craigslist.com Yes Unattractive

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© 2008 CARTO INC.







Clean and user friendly

Community features

Low fee structure

Poor search

Not personalized

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© 2008 CARTO INC.







Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

AttractiveUser

FriendlyValue

Community Focus

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© 2008 CARTO INC.







• Clean background

• Simple colours and fonts

• Uncluttered

• Less text, more art!

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Comprehensive categories

• Advanced search options

• Simple login

• Easily accessible information

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Personalized artist pages

• Unlimited art postings

• Featured artists

• 30-day trial

• Extensive marketing plan

Membership Plan Annual Fee Commission Rate

Starving Student $20 10.0%

Budding Artist $60 7.5%

Established Artist $100 5.0%

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Artist blog

• Art events calendar

• Information for artists and art students

• Partnering with schools and associations

• Art scholarships

• Awards

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







(20% Awareness) (33% Awareness)

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Promotions (Intro & Referrals)

• Signage/Flyers/Posters

• Networking

• Partnerships

• Associations

• Print Advertising

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Guerilla Promotions

• L!VE ART

• Urban Murals

• Signage/Flyers/Posters

• Print Advertising

• In-house Advertising (Zoom, etc.)

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







89%

11%

Membership

Commission

81%

14%5%

Membership

Commission

Advertising

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







• Highlights

– Conservative revenue estimates

– High marketing estimates

• Mitigates risks

– Over $47,000 cash flow at the end of year 2

– Majority + Cash Flows in Year 2

Link to Cash Flow Projections

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

CARTO Inc. Business Plan Financials.xlsx




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© 2008 CARTO INC.







Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

Expense Cost

Business License + Incorporation Costs $620

Legal + Accounting Costs $1,925

Site Development + Server Costs $40,200

Computer + Office Equipment $4,000

Advance Rent + Damage Deposit $2,250

Marketing Research $2,000

Door Opening Costs $50,995

Working Capital Requirement $31,200

Less: Initial Personal Investment $30,000

Total Funds Needed $52,195

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© 2008 CARTO INC.







• Strong growth potential

– Positive monthly cash flow of over $47,000 by

end of second year

– Easily scalable to other cities

• $55,000 loan needed to subsidize

– Start up costs

– Working capital requirement

Agenda

Introduction

Market

Competition

Service

Marketing

Financials

Conclusion

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© 2008 CARTO INC.







CARTO

PRESENTED BY

Connie Chang, Founder and CEO

Paul Shorthouse, Technical Advisor

Kemp Edmonds, Financial Advisor

carto inc

Documents

photographytotal market

vancouver islandtotal

lower mainland

ceokemp edmonds

positive cash flow

commission incorporated

gulf islands