Steven Saxton
Grand Rapids, MN (USA)
Role(s):
Founder/Owner/Principal
Community Delivered LLC
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Startup
Location:
Grand Rapids
Industry:
Technology/Web
Year Founded:
2011
Number Employees:
1-10 people
Business Stage:
Growth (profitable)
Entity Type:
Limited Liability Company
Description:
Founded: March 2009 as Desktop Daily LLC by Steven A. Saxton and Shari L. Saxton. Spun off as Community Delivered LLC in January 2011.
Background and Products/Services: Community Delivered has developed two different software suites aimed at increasing newspaper revenues in areas that have been decimated by a variety of factors. With Real Estate revenues running at a deplorable 31% of levels just four years ago and Automotive income sitting at 33.8% of the mark set in 2007, there was a demand for a system that would reach buyers when, how, and where they were actively looking for homes and automobiles. Enter RealEstateDelivered and AutosDelivered, tools that were created to reverse those trends of the last five years. The building blocks that would make up the products were taking shape in early 2009 while we were operating a weekly newspaper in Ottawa, IL and launched in early 2010 to rave reviews in the local market(s). After running the Real Estate product for six months, we decided to start launching in other markets by partnering with other newspapers. August of 2010 saw the first launch in another market with two other markets launched in early 2011 soon after splitting the software services into a separate company. Since then we have signed contracts or launched in five more markets.
Market/Customers/Competitors: We currently have contracts signed or are operating in five distinct markets that represent a total of 5 licenses for 5 unique publications powered by the software we have developed. Our current customer base consists of newspapers operating in or near Hartford, CT; Nashville, TN; Shelbyville TN; and Roanoke VA with an average fee of 2,250,00 monthly. Roanoke, VA happens to be part of Landmark Media, a chain of newspapers that will put us in a total of 25 markets once we hit full implementation of that agreement representing over $1,000,000.00 in annual revenue from just that one company. We are also currently in negotiations with additional multiple newspaper chains including two of the largest, being Lee Enterprises Newspapers and Schurz Newspapers. Our current customer lists represent an additional 35-40 markets as we expand into other trade areas that are controlled by those customers, but are not yet under contract. We have performed so well with some of the companies that have already launched the Real Estate product that they have already signed contracts for the Autos Delivered product even though it has not been 100% completed as of yet. Our own customers have told us that after we presented our products to them, they then searched for any potential competitors and found none that offered the turn-key packages and the expertise to launch these multi-faceted products. We anticipate our growth over the next 18- 24 months to be limited only by the availability of cash and qualified staff. The total market consists of the 1,500 markets served by daily newspapers and another 2,250 served by larger weekly newspapers. While being first to market for a product such as ours, there are sure to be competitors that pop up within the next 24 months.
The growth in revenue provided by our products range from a daily newspaper that has already returned to 20% above 2008 revenue levels within 30 days of launch. This in a market that had dropped 46.7% during the previous two years. In another market, we achieved growth of 175% in the first month with 225% in month two and holding steady. With growth like that it is no wonder that some of our existing customers are contemplating moving into neighboring markets.
Status and Forecast: As of February 1, 2012, we will be at the breakeven point financially. Current staff level is sitting at three employees with current monthly revenue sitting at $10,200.00. However based on signed contracts and potential new contracts that are very close to being finalized COUPLED with adequate funding, projected revenues will be at the $90,000.00 per month level by December of 2014 which will ensure profitability even after salaries for the founders of the company.
Funding: To date, we have funded the growth and development of the company with personal funds and capital from a close friend and family members to the tune of approximately $275,000. We are currently looking to raise $100,000 to $200.000 to fund the growth of the company with the vast majority of that capital being used to launch new customers and expand the programming staff.