2. The Concept
•The European Union is a single market – there are no additional taxes
and documentation for exports – but there isn’t any B2B integration.
•What ideas do we want to bet on?
B2C integration is taking place, B2B is lagging but is being promoted by EU
Companies with good products needs to find new markets
Barriers that hold up the B2B integration – lack of trust, logistics and language – can
be lifted
Expansion of internet use in B2B
APIs (software – software communication) are here to stay and deliver in seconds
what before needed a lot of people’s work.
SMEs already pay (or are willing to pay) for export guidance, so no costs without new
sales are involved
Fewer than one in ten EU SMEs (8%) reported turnover from exports, which was significantly lower than the respective
share of large enterprises (28%). The main export obstacle for SMEs was the lack of knowledge of foreign markets (13% of
exporting SMEs mentioned this as their prime obstacle), followed by import tariffs in destination countries and the lack of
2
capital (both 9%).
Source : EU Observatory of European SMEs
3. Producers’ Pains
• It is not possible for a wholesaler in an EU country to sell its
products directly to stores in the EU, even if there are no import taxes
and other national barriers.
• Some potential reasons:
Logistics, payments and invoicing can be difficult and
expensive for a SME
Need for large quantities for an exporter to be involved
No IT expertise and below average corporate websites
Difficulty in communicating in other languages
Producers
Lack of marketing and international exposure
5
4. Customers’ Pains
• From the other side there are stores that are looking for a simple
way to get products directly from trusted producers without paying
importers fees or just to differentiate from the competition
Some possible drawbacks:
They don’t trust buyers they don’t know as they are afraid of
scams
They don’t trust the quality of the products without seeing
for themselves
They want the documentation in their own language
Small/medium
firms They don’t want to pay for an intermediate who they could
trust
They want Just-In-Time logistics
5
5. Summary of Idea
Online platform that integrates SME B2B in EU and allows producers to sell
its products to customers throughout the EU.
The startup’s solution ( step by step )
Business information
0. New business
Country
owner subscribes and
a new market channel Sector
opens Submit your
Business Number of
employees
Corp. Name
Turnover
6. 1. We send a person to 1. Face to face
the company’s premises interview about
to conduct an business and
interview, collect financial products
statements, certificates
and take photos
2. Professional 3, Certificate and
photos of owner’s financial
working statement check
environment and and collection
products
4, Phone feedback
request from 3
clients
End results that builds the producer profile
and depicts the reality at the same time
7. Where the customers can read a full interview and get to better know the
producer – not just present the products
2a. We use this
information to
Single
create a web page, which
platform, which the can be
company can use incorporated
as : a. presentation in the
existing
website
corporate
website. The
producer
Tabs, where the sells the
user can switch products, we
easily from the are just
presentation to helping him
the order tab
and the Stats on the
communication producer.
tab e.g.
response
rate etc
Interview, in
a magazine
format, in Verified real
which the photos, whic
producer h help to
can show his gain the trust
passion and of the buyers
expertise
8. E-Shop, where the customer can order, see the shipping cost and check
certificates and reviews (that we have already collected & translated.)
2a. We use this
information to
create a web Simple way to
platform which add orders and
the company can see how the
use as : b. E- cost changes
with additional
Shop:
volume
Again real
professional
photos
Special review for
Button for products that we
additional send them for a
information independent review
Product
documentation
translated in local Shows special
language pricing available
for bulk orders
or recurring
sales or credit
score
9. 3.We translate the web platform
and documents into the most
important European Languages.
We handle communications
through the platform with FAQ
that are pre-filled from the
interview and direct translation
though API.
Questions that have
been answered in the
interview and are
translated (no need to
communicate with the
producer)
Usual predefined questions that
cannot be answers in advance (e.g.
Special payment method for 40 kilos
The website, questions every month). Structured in a way so
and documentation will that the translation from our part will
be translated in the be kept to a minimum and the
most important communication will be a phone like
European languages discussion
10. 4. We offer a simple online
Order Management software
(SaaS) in which users without
an IT background can handle
new orders, payments and
utilise marketing tools Simple easy
to use menu
All the orders that have been
confirmed and the current
status (shipped, paid etc)
Single spot, where the producer
can update all of his social
media status
All the orders and sample
List of requests that are awaiting
awaiting Facebook like front page, in
which the producer gets confirmation
to-do tasks
informed of all recent
activities, new orders, and
news ( or even ads) about
11. Checkout
5. We act as an
intermediate and a
guarantor for
payment, doing from our
side the proper risk
management
The checkout and payment will be
on our servers, having just the logo
of the client for marketing purposes
Shipping & payment method. The
user will be able to choose the desired
one.
The buyer will be able to have a
recurring order basket that every
e.g. 15th of each month he will buy
selected products (eg. 50k of
coffee, 10k of cheese, 100 bottles
of wine)
Payment burden needs to be lifted
The payment
We handle credit risk and working capital cost by performing a information is
credit analysis on each client and producer, using our database provided only to the
and insurance when needed. startup and never
E.g. For customers and producers with good credit scores passed to the seller
( many transactions), we pay producers at dispatch and
and customer pays us 30 days after delivery. (we assume
credit risk and working capital cost that can be included in 100% Guaranteed
Returns available for
the price)
orders that don’t arrive
12. 6. Conduct online marketing
for them through the platform
and represent our clients in
trade fairs with an online &
printed directory that we have
assembled from the interviews
and photos
Special offers Online Business directory. Buyers can visit our
& coupons. page, search e.g. “cheese producer France” and get the front
page with the relevant information and a link to the producer’s
online store
Email Committed sales people. In countries where
we have strong presence, we could employ 1-
marketing - 2 people to find new producers but also new
newsletter clients by presenting what we offer
Social media Targeted Marketing Campaigns.
Through numerous transactions we will have
marketing data than can be used to target sale
campaign. Who buys what, frequency, etc
Printed Business Directory. Having all of
Promotions these information and reaching a certain
& coupons. scale, it could be meaningful to create
business directories by country or by industry.
13. What pains have we solved
Producer Perspective Buyer Perspective
✓ Easily organize
orders, logistics, payme
Protection from scams
and low quality products ✓
nts
✓ Ability to communicate with
foreigners in your own
language
Have all of the information in
your local language in order to
be able to understand what
✓
you are buying
✓ Find and target new
customers. Diversify your
client base
Ability to buy directly from
producers achieving cost or
differentiation results
✓
✓ Gain international exposure
new customers without any
fixed/initial cost
Get price results and
special offers depending on
your volume and payment
✓
profile, like a face to face
relationship
We create a trusted brand, the other services are
complementary (and optional)
The goal is to make direct international trade
similar to home trade for both sides
14. What we are NOT trying to be
A B2B marketplace, such as Ebay or Alibaba.
We are not trying to sell products, we are selling the producers or in
other words we assist the producers to sell products,
A consultant or freight forwarder
We are not getting any money if the producers are not selling any new
products. We are an IT based company, but we put a stake in every
new producer on our network. If he gains we gain.
A combo of all the above
We have a distinct business plan. We cannot do everything. We are
targeting that our platform will be easily populated from many
small/medium producers. The database will be created from our side
with only one visit on site and with use of APIs (see next slides) to
minimize staff costs. With a mature database of producers the
protection of our brand image and marketing will be our main concern.
15. What we ARE trying
to be
A crossroad where AirBnB meets Tictail and Bigcommerce
We take the trust AirBnB offers by using only their own
photos after visiting the houses - for the travelers side -
and gives damage insurance -for the owners side- ($2bn
value startup)
We add the tools Bigcommerce offers to companies to
make an online shop (fastest growing e-commerce
platform in the world, more than 25,000 subscribers)
We make it easy to get started and incorporate our platform
on your own site that Tictail allows (beta-launch, 1.2m seed,1
of top 100 startups in Europe (Wired)
And we complement it with the multilingual flavor that is
Study: Can’t Read,
necessary in the E-commerce world (…more than half Won’t Buy: Why
our sample (52.4%) buys only at websites where the Language Matters
information is presented in their language - study : on Global Websites
Can’t Read, Won’t Buy .)
16. Business Model
Everize Platform
Sales ( find new SMEs)
Create landing and e- Marketing ( find
order page new costumers)
Translate documents
Develop network Create account
Deploy site on
of businesses by and upload
Give access to our server and
photos and
giving them an Docs order platform client’s server
alternative sales (SaaS)
channel (initially
Gets shipping quotes Create loyal
sales people
from major supply buyers to our
involved)
chain firms brand and to
client’s product
(e.g. as an
Everize Network Everize Database unknown
product with the
brand P&G on
the side). Sales
people again
Use database info to improve involved.
client’s sales. Also, market Develop database of
new product through our transactions, credit
online platform to our own score, payment, delays, freque
network of clients (target them ncy, shipping cost, buyers
17. Market size limits (EU) and revenue model
EU Non finance sector SMEs 5 < employees < 250
8.000.000
Let’s say 20% of them CAN use us =>
1.600.000 SMEs
From the ones who can use us, 10% see us and are
interested to us=>160.000 SMEs
In mature stage, from the ones who can use us
AND will be interested to us, let’s say only 10% will
chose us =>16.000 SMEs
However to be realistic we assume in the first/second full operating year we will have only
500 companies with a turnover € 3 mil, 5% of sales through our channel and 2% commission
for us (lower than the any export broker)
Profitable even
before scaling
18. Possible concerns
The market structure is completely different than the B2C
e.g. distributors have the power not the end consumer
The quantities will not be sufficient for medium buyers to get interested
Supply chain within a country could be a possible difficulty
Buyer penetration can be difficult, as buyers can be concentrated.
If the producers are big enough, they will not want to give 2%-3%
margin, but will assemble their own team.
19. Shoemaker Cheese Olive Pro
Denmark Producer Greece
Finland
Mattress Paint
manufacturer manufacturer Toymaker
Poland Germany Bulgaria
We want these people to be able to sell
EVERYWHERE, as their products deserve to
be everywhere
We are waiting your feedbacks at
spyridon.savvidis@gmail.com
Thank you