HRH+ Utility Corp - Human to Robot to Human+
Executive Summary
PLEASE READ THIS FIRST
Before you read my Pitch, please take a minute to read this overview. What I have tried to do is to clarify why I believe this is a great investment opportunity. While the opportunity seems very big and complex, the approach we took is cognizant of the market segmentation of the SMB market, scoped down the initial product, enlarged the subsequent phases and finally provided a tool for expansion. and the need for our product.
Business Intent:
To be the primary cloud-based utility that provides software robots (Probots) to small and medium businesses to1. automate low-value functions or 2. to take on business roles such accountant, HR manager and 3. business advisor. While the entire operations are within the cloud, the owner has total control via a natural language communication app on his device. We structured ourselves as a utility as the most efficient business model for a very large number of SMBs in most markets (California has over 4 million SMBs that make up 70% of its economy). Our software is packaged and industrialized to support each SMB and maintain a ~100% uptime, particularly as the Probot becomes a critical resource over time.
Product Definition - Software Bots or Robots - are composed of process automation software, advanced technologies such as cognitive, machine learning, natural languages, and AI. There are no hardware components thus the Robot is essentially virtual worker in the cloud. The Probot can operate independently or as an assistant to the role.
Problem Definition
Having consulted to over 140 SMBs, we have summarized our observations.
• lack of scalability and resilience
• lack of time, for business and family
• little knowledge of what is needed to manage and grow a profitable businesses’- i.e., cash management, controls, budgets.
• Lack of business performance metrics. Most performance is measured by YoY revenues
• Lack of access to competitive data, market data, national trends etc.
• compared to larger businesses, slim margins, lack of capital for investment,
• we also intend to address the classical cycle of automation, change and displacement of workers
• how to increase value in the business for exiting or valuation purposes part of estate planning
Business Overview, Approach and Differentiation:
As a business we have patented a Probot Catalogue as the unifying technology. The Probot Catalog is an operating repository for Probot usage-subscriptions, billing, technology profile, work logs and operations history. It is also a platform for Probots have immediate access to advanced technologies required such as AI, cognitive, Machine Learning, models, and analytics. We have designed extensive diagnostics within Probots to identify errors prior to interfacing with the business applications. This is key to keep our commitment 100% uptime.
Thus, our major differentiators are:
A packaged solution, fully tested and able to handle 1000s of SMBs. Most of the competition is driven by process automation and point solutions. We are not offering (RPA programming) point solutions.
- All customer support and troubleshooting addressed by HRH+ ProBot – 24/7/365 uptime.
- The ProBots act as both advisor (advanced analytics) and functional worker.
- The ProBot can be configured by role to assume or assist in the business as an information manager use AI analytics and maintain a dashboard of business performance
- Cloud economics make the cost minimal without reducing performance. It introduces variable costs.
- With natural language and machine learning the ProBot can be personalized (or not) to suit any work environment.
- For any displaced worker, we designed a program for reskilling and retraining to address long term employee. Unlike large companies, most employee becomes family and are retained through retirement.
The SMB Market
The Small and Medium Size Businesses account for 70% of the employment in the US. These businesses usually operate on a thin margin with little or no reserves. They’re cost models are primarily based on fixed costs. Thus, business disruptions (climate change, pandemics) from external factors, weak sales cycles, over extension, aged receivables can reduce the profit and growth. In the first year of the Pandemic over 400,000 SMBs went out of business! They tend to react to the market late and require significant investments (usually in the form of loans) to scale and manage the business for growth.
Our Value Proposition
There are three fundamental values we deliver to the customer and the SMB business. The first is process cost reduction, increased efficiency and above all scalabilities. The second provides the owner with our library of additional functions to integrated into the ProBot. Finally, the Probot provides the owner with business insight using internal data as well as external data bases. Using AI analytics, the owner can now project his business to understand the use of sales tools such as campaigns, customer satisfaction etc.
Sales and Marketing
Our market entry is through device app that is communicating with the ProBot, media entry and task scheduling. As such it will be sold through multiple channels such as retail channels and app stores. It can be purchased online at our commercial web site, Amazon, brick-and-mortar stores such as Staples, OfficeMax, Best Buy. At first the app can provide analytics of existing. When satisfied, the Business Owner can subscribe on the app and begin directly using the ProBot post installation.
Marketing will be through advertising, store premotions, social networks, online webinars, offsite presentations, Chamber of Commerce presentations etc.
Profitability and Growth
Our revenue will come through a subscription business model and operate as a true utility that can handle the volume of businesses. Each additional role will be discounted, or the buyer can buy a bundle of roles. Pricing will be dependent on the size of the business in both revenue and employees. Value added services (tax organization, fraud monitoring) can be purchased by quarter or year.
We have margin goal of 28% for the first year and an ROI of 15% in the first year. Growth is anticipated to be 20-25% per annum. Market share will be determined by first dividing the market into micro-markets (all SMBs within a 50mile radius of large cities) and then micro-market penetration.
Team
Michael Blum - Founder
Raj Sura – CTO and Product Development
Jim Rafferty – Sales and Marketing
Our Ask
$250,000.00 in the form of a seed investment. The initial funding will be used for product development, cloud operations setup, advertising and marketing, and initial sales in one to two regional markets.
Funding Analysis Checklist - Available Upon Request
Bylaws and Resolution
EIN Confirmation - Employer Identification Number: 86-2133083
S-Corporation Election - HRH+ Utility Corp.
US Patent Office – Provisionary Patent for Bot Catalogue
Company Website – www.hrhutilities.com
Proof of Concept – POC, on website
MVP – Designed and in development
Set up focus group of SMBs
Articles and papers published
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