CAPITAL.MY

Alternative Funding Sources for Businesses

Seeking startup Fund of $0.5mil for Online Call Center

Seeking startup Fund of $0.5mil for Online Call Center

Project Cost:$0.5 Million

Amount Invested : $50K

Amount Required :$0.45 Million

Knowledge / Experience Required:
finance
sale & marketing

Proposed Investor’s Role:
as consultant

Industry:
internet
telecommunications
others (BPO)

Project Stage:
start-up

EXECUTIVE SUMMARY:

Company History:

Company History: With increasing trend of US customers choosing to buy online, the potential of generating revenue by processing sales in a low-cost market economy like Malaysia using online marketing is comparatively easy. We wish to target companies providing Cable TV, Internet & Phone in US. Websites marketed via google Adsense will generate sales and traffic for Call Center based in Malaysia. Investor from USA will be responsible for contracts with companies like Charter, Comcast, TWC, AT&T, Direct TV etc.

Product / Service Description:

We are a team of Call Center Operations, Quality & Training, WFM, Online Marketing, Telephony & Web developers having experience of more than 05 years in the same business working for a company that is authorized re-seller for Charter, Comcast, Mediacom, Direct TV, Timewarner Cable etc. This company earned a revenue of more than $38500000 in 2014 (ref Annual report dgsworld.com). Ex-Top tier of the same company is seeking to establish a similar business in Malaysia (due to devastating security situation in Pakistan)

Business Opportunity:

Online purchases in USA increased to $76 Billion in 2014 from $36 Billion in 2013. Online purchases volume is expected to cross $100 Billion in the next 12 months. This poses a huge opportunity to take advantage of. The model where:

Customer in USA searches for a product online
We have a website in the top 05 listings (powered by google)
The websites display TFNs & Chat boxes for customers’ help
Traffic so generated is routed to a Call Center in Malaysia

We wish to launch this model initially for Cable Internet & Phone companies and has huge expansion potential for other products in future

Revenue Model:

Cable Internet & Phone provider companies pay commission to e-channels/online sales partners. With more than 75% of Americans changing houses at least once in 02 years, along with new settlements being set up all over the country, there is enormous potential. Every product (cable/internet & phone being 03 products) generates more than $65 to $150 (based on company and area it operates in) in revenue.

Management Team:

Senior Call Center management
Quality & Training department head
Workforce manager & Business Analyst
Website developers
Contact center sales team

[names & details will be furnished]

Current Status:

We have expertise and are looking for an investor. Training manuals, launch plans, project details, costing methods, call trends for USA, Staff scheduling models, FTE count required based on call volume specific to this project, reporting structures to satisfy cable internet & phone companies are available with us.

Funding Milestone:

Call center set up in Malaysia with full IT & Infra support
Call routing apparatus to be deployed in USA (switches & servers)
Website development & maintenance
Marketing of websites on google (we have terms to be used in Adsense account that attracts traffic)
Payment to Call Center staff & management
Registered office in USA that will enter into contracts with cable internet & phone provider companies (Completed)
Legal adviser in USA to over look contract terms/resolve customer complaints. (Completed)

Business Valuation:

We have real time costing sheets available that can be verified from the market. Major cost consists of:
– Call center set up cost (we propose to start with 25 seats)
– Payroll
– Google marketing
– USA office costs
– TFNs subscription costs (to be used for traffic routing)

Including google marketing costs, we estimate the project to cost $300,000. Once agreed on the plan, the real costs may vary +/- 20%

Expected Return On Investment:

25 Seats operating for 14 hours a day during working days only will generate 6000 sold units (this is calculated at 75% of actual performance) resulting in $400,000 of revenue in 01 month. If launched, the model is expected to grow at an exceptionally high rate. Within 01 year of operation, the call center is estimated to reach 300 seats, resulting in a revenue of more than $35 Million. Note – dgsworld.com operating in troubled environment, motivation-less staff, frequent production losses due to macro factors generated revenue of $38 Million in 2014.

Investment Risk and Mitigation:

Need to have strong business developer/BD team in USA. Failure to meet legal requirements can be a risk
Call Center set up in Malaysia must meet network privacy and security protocols to support online transactions. Companies in USA will only enter into contracts if we meet the requirements
Motivated sales team is the core requirement of this business.
Despite technological advancements, performance of telecom giants like Comcast, Charter, Direct TV has not taken any major hit and the business growth is intact. There is no major risk of failure/losses. Technical expertise required for this business is available in Malaysian market. Once launched, we will start producing indigenous teams requiring less and less human capital migration.

Exit Strategies:

Sunk costs are:
– Call center set up in Malaysia
– Websites developed
– TFNs subscribed
– Call routing apparatus in USA & Malaysia
– Call recording servers
– Staff payments

From contracts in USA to sales in Malaysia, everything can be given a test run. Therefore, there is hardly any reason why an exit would be required.

CONTACT PERSON

Danish Roomi
Selangor
Malaysia