- Cloud-hosted in MS Azure
- Access Control – Alarm Management – Video Surveillance – Visitor Management – Elevator Interface
- Disruptive Product – Biometric Admission Device – Just look and be recognized. Replaces cards – Easy – Fast – Secure – Proof of Presence.
Industry Standard Hardware
- Open architecture
- Sold up-front or as a service
- Product serves most verticals but initial thrust into familiar Commercial RE and Financial Markets
- Focus on Reseller Channel and their End-Users
- Address Consultants and Market Influencers
- Leverage partnerships with major suppliers
- Carefully crafted website www.BluB0X.com
- Comprehensive and open Knowledgebase
- Exploit Person Reader uniqueness
- References / Case Studies
- 8 Reginal Sales Mgrs. To cover the country.
- Each RSM handle 45 Resellers
- Coverage complete with 280 Resellers
- Liberal use of Professional Services to get Resellers started
- Sell to End-Users and bring the opportunities to Resellers
- PSA membership reaches nearly 300 Resellers
- Professional Services assist with pre-sales design and quotations
- Automatic monitoring of system components to anticipate failures
- 24x7 Support reachable via Internet or phone. ZenDesk on-line event tracking
- Strong diagnostic tools over the Internet.
- Self Training
- Comprehensive Knowledge Base
- Just in time inventory
- Startup is slow as Resellers are enrolled, trained and made productive
- Need volume to make hardware prices competitive
- Recurring Revenue must be built gradually
- Hardware Sales support the Recurring Revenue build process
- Revenue builds fast once the system is primed.
- Margin builds steadily as Recurring Revenue catches up
- Profitable in 11/17
- Revenue builds from $250K in 2016 to $5.5M in 2017, to $24M in 2018 and $78M in 2020
BluSKY is an ambitious undertaking, even though it will be kept focused on the immediate needs of the physical security industry. It covers Access Control, Alarm Management, video Surveillance, Visitor Management and advanced interfaces to the elevator systems. There is plenty of scope for continued development and improvement. Being in the cloud, it can support advanced forms of statistical analysis and artificial intelligence. It is expected to become best-in-class by early 2018.
The Person Reader is built using a small number of off-the-shelf components, but it runs sophisticated recognition software to produce a convenient, quick and secure credential that will eventually obviate the need for cards or other credentials.
The rest of the product line is hardware that is purchased from major industry-standard vendors and can be resold at a decent margin.
The products serve most vertical, but BluBØX’s initial focus will be on the markets it knows best: Commercial real estate and Financial.
All marketing initiatives will serve the development of the reseller Channel and to familiarize end-users.
Programs are being put in place to create a close relationship with consultants and other influencers.
BluBØX will leverage its partnership with major suppliers such as Mercury (Controllers), LSP (power supplies), HID or Assa Abloy.
It has already constructed a very comprehensive website and a comprehensive knowledgebase open to all, customers and prospects alike which it hopes will become an authority in its field.
The Person Reader can be exploited for its uniqueness and attraction.
BluBØX’s plan is to sell its products through the channel. By simple observation of existing industry vendors, one concludes that a network of 280 resellers will provide adequate coverage for the country.
BluBØX plans to engage eight experienced Regional Sales Managers who will each enroll and support approximately 35 Resellers.
The Resellers will buy the hardware components for the systems they sell to their end users from BluBØX, and thus create some level of up-front one time revenue flow for BluBØX., BluBØX will then send a monthly invoice to the Resellers for their customer’s use of any of the three dozen BluSKY licenses on the recurring revenue model.
BluBØX will interact directly with some end-users to help seed the Resellers’ territories with referenceable accounts, and pass the orders on to the Resellers for installation and on-going support.
BluBØX has instituted many programs to support the Resellers’ effort: A Professional Services group to assist with initial quotations, system design and large sales; a Support group to monitor BluSKY’s performance on-line, anticipate possible failures, and assist Resellers with diagnosing unusual problems; an outreach to industry influencers and consultants; a very comprehensive Knowledge Base open to all; a representative website; focused training and self-learning tools; and an outreach to media channels and social networking.
It is characteristic of a recurring revenue model for the start-up phase to be slow. But the plan gathers steam as the recurring revenue component takes off.
Overall revenue builds from just $250K in 2016, to $5.5 Million in 2017, $24 Million in 2018 and $78 Million in 2020
In 2020, the last year of the plan, Net Profit is $22M, or 28% of overall revenue. Such a level is made possible by the high margin recurring revenue which, in December 2020, accounts for 72% of total revenue.