You are on page 1of 14

Patrick Lawrence Kane

Founder/CEO
Patrick@PeoplePawn.com
www.PeoplePawn.com
1-866-383-PAWN
Retail based
financial services
(microloan)
provider Collateral Loans

Pay-Day advance

Pre-Paid debit

cards

Retail
06/26/08 Content is the property of PeoplePawn. Copyright © 2
Customer Pain Solution

» Up to 59% » No access to » Multiple, fast cash


of U.S. fundamental banking solutions
households tools for short-term
» Big, bright, beautiful
cash emergencies
neighborhood store
» Family & friends locations
cannot always help
» Customer-service
» Little focus on
» Retail & internet
customer service
bargains
06/26/08 Content is the property of PeoplePawn. Copyright © 3
Market Size - $15 Billion and
growing
Industry Volume $’s Billion
30

25

20

15

10

0
Pay Day Collateral Bank NSF Prepaid
Loans Loans Charges Cards

06/26/08 Content is the property of PeoplePawn. Copyright © 4


Market Size – 85% Fragmentation
Collateral Loans – National Competition 12828
90% owned
& operated
by “mom &
pop”
# Stores

Cash EZ First Valu Pawn Pawn Pawn


America Corp Cash e X- Americ 1
Pawn Change a
Multi Unit Competitors

06/26/08 Content is the property of PeoplePawn. Copyright © 5


Market Size - Customers

Sizing The Market - 59% of 115M U.S. Households

Source:
“Sizing The Market” – Sherbrooke and Associates Market Study – The Cash
and Credit Constrained Consumer

06/26/08 Content is the property of PeoplePawn. Copyright © 6


Revenue Model
56%

20%
15%

7%
2%

Washington State House Bill #1232 amending RCW 19.60.060 scheduled for vote in April ‘07 potentially
increases transaction fee’s by $4 per transaction. This is the first statutory change since 1991.

06/26/08 Content is the property of PeoplePawn. Copyright © 7


06/26/08 Content is the property of PeoplePawn. Copyright © 8
06/26/08 Content is the property of PeoplePawn. Copyright © 9
Patrick Lawrence Kane – Real Estate - Steve Lawson
» 25 years of corporate real estate experience:
Founder/CEO: Schuck’s, Taco Bell, Extended Stay America
Chevron/Mc Donald's
» 17 years of international retail
» Managed a portfolio of 500 Advance America
operations experience Payday loan stores
» Extensive retail start-up Human Resources - Marcy Wood
» 15 years experience in HR
experience in Seattle – 3
» Currently Human Resources Director for 3 NW
companies/11 years companies
» Extensive pawn experience – 27 » Extensive start-up experience in retail
environments
stores in 5 years (Pawn X-
Certified Gemologist - Jean Spidell
Change) » 15 years experience in Seattle jewelry industry
Jamie Thomas – Financial » 10 years experience in sales, marketing, training
& organizational development with local &
Controller: Fortune 500
» Multi-unit retail experience » BA Marketing & Geology
» Certified Gemologist
» Entrepreneurial start-up » Currently Corporate Manager with The WaMu
experience – financial systems & Leadership Center in Seattle
reporting Legal - Craig Elkins
» 22 years practice as an attorney
» Proven financial comptroller & » Franchise, retail, contractor & manufacturer
ops manager-Leavitt Cap, Fisher experience
06/26/08 Content is the property of PeoplePawn. Copyright © 10
Financial Projections
10 stores – 5 years

Cumulative Store Financial Overview


$’s

Year 1 through 6
» Profitable within first year (6 months)
» Revenue exceed $1M per store within 2 years
» Net profits per store exceed $500K by year 4
06/26/08 Content is the property of PeoplePawn. Copyright © 11
Traction
» Business model created 2006
» 1 full time, 1 part-time employee
» $170K soft circled from the $500K needed
» BOA in place to support operations
» Initial real estate search commenced – Seatac/Tukwila
» POS system identified
» Seattle pawnbroker license captured – strategic plus
» Training & operations systems developed to scale
» Extensive Pro-Forma financials based upon actual
historical achievements
» Expected to open first store 2008

06/26/08 Content is the property of PeoplePawn. Copyright © 12


The Offer
Prior Funding:
CEO – self funded to date
In addition, founder – more than 12 months without
salary
Current Round:
$500K Series A Preferred ($330K remaining available)
$2.5M pre-money valuation, $3.0M post-money
$500K Series B planned Q2 2008
Use Of Proceeds:
Build out costs – 22%
Opening inventory – 16%
Pre-opening expenses – 5%
Loan funds – 57%
Exit Strategy:
Acquisition by public company or larger private company

06/26/08 Content is the property of PeoplePawn. Copyright © 13


Patrick Lawrence Kane
1.866.383.PAWN
Patrick@PeoplePawn.com