Benjamin Leff · Sun, 05/29/2011 - 12:26
Business
Business Overview:
Simpaction is a web-based retailer that encourages consumers to purchase simple products that make a positive impact on the environment. The company name Simpaction is derived from the words “simple” and “action,” in which the combination of each of the words creates “impact."
Simpaction’s target market is unique in that it attracts the "light green user" or the consumer who sometimes buys green products. This customer hesitates to buy green due to fear of complexity, inconvenience, and lack of knowledge. Our X-factor is that we put simple into everything we do (even our name). Whether it is our website, online ordering system, or the products we encourage consumers to purchase, the one thing we will always guarantee is that it will be simple. Simpaction will not merely be a green marketplace; but an educator; it will be the “hub” for green products, a mechanism by which consumers can know that every purchase they make is smart and environmentally friendly, as well as why.
Project Type:
Industry:
Project Website:
http://www.simpaction.com What are your future milestones, and how much capital will you need to achieve each of the milestones outlined?:
Simpaction's future milestones are to: begin construction of the website, establish multiple partnerships and connections in the green industry, and build brand name through marketing efforts. Construction of the website will require $10,000-$20,000, and initial marketing will require $10,000+
What is your total and operating cash burn (the amount you're spending) per month? :
N/A
How many future rounds of financing do you project? :
Three
Services Desired:
Technology Consultant
Distribution/Sales
IT
Marketing
Supply Chain/Distribution
Who is the Customer?:
Simpaction’s target customer is the online shopper that has an interest in taking steps to make a positive impact on the environment, but wants to make decisions at their own pace. These individuals have most likely attempted to live a “greener” lifestyle, but it is not something they know how to incorporate into every decision they make. Simpaction’s goal is to appeal to the consumer who is searching for a resource for buying green; a dependable marketplace to which an ecologically–conscious consumer can consistently turn.
According to Simmons Choices 3 Data, the target is male or female, between the ages of 25 - 44, caucasian, having attended and completed college and/or higher education, employed full time, with a household income of $60,000+
What is the Customer Pain that you are solving?:
Simpaction makes the notion of "going-green" simple. Our simplicity and transparency demonstrates that becoming more sustainable does not require a drastic change in lifestyle. Simple actions such as buying an LED light bulb instead of a traditional incandescent can have a large impact. We aim to educate our users about the simple green alternative products. Simpaction also eliminates consumer's worry about "greenwashing" when shopping online, and allows the consumer to research green products before they purchase.
Names of any current or recent customers:
N/A
What is the Target Market?:
Simpaction’s primary target market, comprised of household consumers, is classified as the “Light Green” consumer. (Mintel) This is one of four consumer classifications, and is described as one who sometimes buys green products.
How big is the Target Market in terms of Annual Sales?:
> $50B
Sales/Marketing Strategy:
Simpaction has partnered with a marketing agency in Chicago that will aid us in reaching our target. We plan to implement a marketing campaign prior to site launch as well as marketing efforts once the site is up and running. Marketing will be placed in both traditional and non-traditional mediums with a focus on online advertising and marketing in geographically specific regions. Currently Simpaction is visible in multiple social media outlets and intends to start building its customer base and recognition through these means as well as other forms of guerilla marketing in the Madison area.
Provide use cases :
There are a variety of reasons customers will use our site, but we foresee two in particular:
Situation 1: The customer is interested in purchasing a household consumer item, such as a light bulb. He/she then searches for this item on the website to find out what the more environmentally friendly alternative would be. In this case, they would find LED light bulbs and be able to purchase them directly through our site.
Situation 2: The customer is browsing the website to see what environmentally friendly products are available, and he/she finds a product that satisfies a previously unknown need.
Competition:
Greenhome.com — Retailer of green home goods. Site contains and promotes products that are not “actually green.” Categories listed on site do not focus on convenience, nor does it highlight the advantages of green products like cost effectiveness. This website lacks a certain professionalism that is required for web based retailers to be successful.
Neerg.com — Retailer of green products. Site promotes a form of green washing, advertising products that are not necessarily environmentally sustainable. This site bombards its customers with products that have no positive impact on the environment. Site’s primary form of advertising relies on viral marketing.
Futurefriendly.com — Owned by Proctor and Gamble. Site contains a very
limited number of products. Additionally, many of the products that are listed are
not green. Also, products are not sold directly through their site.
Gaiam.com — Similar review to Neerg.com
One-line Pitch:
Simpaction is a web-based retailer that encourages consumers to purchase simple products that make a positive impact on the environment.
Business Model:
The revenue model for Simpaction consists of two main variables, product sales and product ratings.
Product sales will be commissions-based as a percentage of the revenue collected for the product. This will be paid by the company that is selling the product through the website, which benefits from the additional sales portal for selling their producer. All orders will be forwarded directly to the producer of the product. Simpaction will not hold any inventory on hand.
Product ratings will collect rating fees for simple environmentally friendly products sold both on and off our site. Producers of green products who believe their product is user-friendly and warrants the Simpaction “seal of approval” can pay a base fee to use our seal on their website and when packaging the product.
Product/Services Overview (what does it do):
Simpaction sells smart, innovative, environmentally sustainable products that help consumers reduce their environmental impact "footprint." Simpaction does the leg work for consumers by researching and screening products before they are posted on our website. Simpaction gathers green products in one location, and demonstrates the value of being green to the customer. Simpaction will show the consumer the priceless worth of buying smarter, more environmentally friendly green products. For instance, Simpaction will show the customer precisely how many kilowatt-hours they will save simply by purchasing the smarter product Simpaction sells. Simpaction will also, for that matter, show the consumer exactly how much money they stand to save by purchasing a green product. These calculations will be illustrated through special features on the website such as interactive impact calculators.
Technology
What makes the technology/business unique and have a defendable competitive advantage?:
The main strength of Simpaction is its ability to distinguish itself from other green consumer websites. Most individuals who want to be green, know how to be green, and already are green. For others who are willing to be green, but do not know how to, or do not have the resources to do so, Simpaction provides the solution. Simpaction will educate customers on simple actions that make a positive environmental impact. There is no current mechanism designed for selling green products to the not-so-green consumer.
Of the many online retailers, none offer the selective assortment that Simpaction will. All products featured on Simpaction’s site will be extremely easy to use, promoting a smooth transition to a greener life style.
Additionally, Simpaction's future established credibility will fortify it as an authority in the green industry. People will look for Simpaction's "Seal of Approval" in order to know that what they are buying is indeed environmentally sustainable.
Describe in detail the technology used in the Project - Address the innovation in significant detail :
N/A
What are the principles of the technology? :
N/A
What, if anything, has been proven (and how far is this from a commercial scale)? :
N/A
What challenges/risk does the technology face for commercialization?:
N/A
Patent Numbers (Filed/Approved):
N/A
Team
| Name | Title |
|---|---|
| Benjamin Leff | CEO |
| Rachel Yanofsky | CMO |
Patrick Eagan
Chad Navis
Matt Peterson
Phillip Greenwood
Howard Leff
Current Investors:
Founder
Joel Chriss
Financials
Amount Sought:
$150,000 If raising funds, what shall the funds be used for?:
Funds will be used for the construction of the website, execution of marketing strategy, and growth of the brand name.
Pre-Money Valuation:
$400,000
Funding Received to Date:
$9,000
Amount invested by Founders:
$4,000
Funding Stage:
Early/Seed Funding History:
| Funding Round | Funding Type | Funding date | Funding Source/ Investors | Amount | Pre-Money valuation |
|---|---|---|---|---|---|
| Seed/Bootstrap | Equity | Jan 2011 | 4,000 | ||
| Friends & Family | Equity | Jun 2011 | 5,000 |
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