IRUN Draft Prospectus by IRUN Business Intelligence

Investor Prospectus Introduction

August 2008

IRUN Business Intelligence

Consider this….

76% of businesses feel that they have not had a positive return on their internet investment to date.

IRUN find out what our clients’ ideal customer looks like, then make the phones ring… IRUN clients are typically amazed at the return on investment www.tastebuds-devon-co.uk “You have really helped us acquire an affordable and professional web presence. We've always thought about getting on the web but could never find a satisfactory means to do so at such an affordable cost.” Alan Enright, Editor - Tastebuds © IRUN Solutions Ltd, August 2008. All Rights Reserved All prices quotes are exclusive of VAT

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IRUN Business Intelligence

Are you looking for a business with potential for outstanding growth, substantial equity value that is enjoyable, rewarding and easy to manage? IRUN Business Intelligence has developed a unique package that delivers business growth to the massive SME sector in the UK.     

World class website building and management technologies Search Engine Marketing solutions Cutting edge Customer Relationship Management tools Email and SMS marketing ‘Engines’ Digitial media

Taking the above ‘products’ and combining them with IRUN’s world beating combination of business development strategies and techniques enables us to deliver what every business is looking for: 

More sales, more profit and longer client relationships

There are 4.8 million businesses in the UK, in addition there are clubs, charities and a whole host of other organizations who need what IRUN offer. Want to know more? Please read on or call 01865 920 003 to discuss your personal circumstances

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IRUN Business Intelligence Thank you for taking the time to read through this introduction to IRUN and the perfect combination of circumstances which add up to an incredible opportunity. The Right Market: A sector which is on its way up and growing rapidly, rather than a crowded mature market which has already peaked. The Right Time: Very weak competition, overwhelming demand, and a highly differentiated product and service offering. Building Future Security: Long term financial security based on a large client base. IRUN also has a truly unique position in the market • • • •

IRUN is large and local - - not a one man band “here today gone tomorrow.” IRUN has a proven track record – from start-ups to corporate solutions. IRUN has a complete portfolio of services – we grow with our clients needs. IRUN has expertise across the range of services - not limited in breadth or depth.

IRUN Business Intelligence represents a fantastic business opportunity for highly committed individuals who wish to grow and develop their own local business. If this opportunity is right for both of us, and you can build your client base at a moderate rate each month, you can look forward to enjoying great client relationships, healthy profits and, above all, outstanding equity value in your business I look forward to talking to you soon.

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IRUN Business Intelligence

What makes IRUN different… From the beginning, IRUN set out with the sole intention of delivering outstanding support and value to business clients in the SME sector. Our clients are simply showered with 'Value Add' services. We do this because we are obsessive about delivering value. The result? We deliver overwhelming customer service; our clients then become passionate advocates, and are our best source of new business. “IRUN’s goal is to become the market leader for web and internet related marketing services to the SME sector.” Although many of our clients face similar challenges it is our unique approach and the breadth of the IRUN service portfolio which places us ahead of the competition. We can tailor each solution to address the immediate and ongoing needs of the business. Offering ‘must have’ solutions and using an advisory approach ensures we maximise the power of referrals. Your objective would be to leverage this approach and build your local business based on referral. www.lhp-law.co.uk “The new website that IRUN has produced for LHP Law LLP is a massive improvement on the old one, in its ease of use and design. The new website is clean and uncluttered, and extremely easy to update with new copy, downloads, new images and even whole web pages which fit in seamlessly with the ones created originally. We have already seen a steady flow of people using the quote facility and easy to use contact pages to find out more information about the services that we offer.” David H. Lawrence, Business & Projects – LHP Law LLP

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IRUN Business Intelligence

The biggest challenges most business owners face include one or more of the following… 1. Lead Generation - generating additional sales enquiries = more prospects 2. Conversion - turning more prospects into = more paying customers 3. Customer Retention - strengthen customer relationships = reduced attrition rates 4. Penetration, Up-sell, Cross-sell - Maximise sales to existing customers = make more profit 5. Business Process

- improved efficiency = streamline to cut costs or add value

These are the key business drivers that impact on the growth and success of every business, no matter what size, industry or profession

IRUN’s products, services and unique approach make a direct contribution to every one of the above ‘Key Business Drivers

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IRUN Business Intelligence

Running an Intelligent business

IRUN’s products, services and unique approach make a direct contribution to every one of the above ‘Key Business Drivers

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IRUN Business Intelligence

IRUN Investors The primary role of the IRUN Business Intelligence investor is to generate new business, to increase the local client base, and to promote the IRUN brand. As an investor, the opportunity is a great fit for managers or entrepreneurs who are likely to be able to sell in the early days, and / or employ and manage sales staff, and want to be an integral part of the business from the outset. For those who are looking for a great investment opportunity in a huge and dynamic growth market, IRUN could be the perfect vehicle. With such a comprehensive range of products and support services, most sales people believe IRUN has created the ideal sales environment. This means the investor can look forward to serious growth and return on investment, with a minimum of effort or risk. IRUN may look like a technically driven business and, up to a point, it is. But you don’t need to be technical to be successful. To be highly successful, you only need to know how to use desktop applications like Word and Outlook, and be comfortable using the internet and search engines. To excel, you need to be able to sell, or manage staff who will sell for you. “IRUN has identified a viable niche in the market and provided excellent tools and the vital ongoing support necessary for business success. A business based approach to small and medium sized companies, helping them use internet marketing as a powerful business development tool, is undoubtedly an irresistible business proposition. This applies across the spectrum, from sole traders, right up to large corporate businesses.” Bob Young IRUN Banbury C

B bY

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IRUN Business Intelligence

How IRUN Support Your Success Training and support IRUN provides unsurpassed training and ongoing support, helping you maximise your full earnings potential and long term business success. Pre-training: You will be provided will a comprehensive pre-training package to ensure you maximise the value of the residential training course. Business set-up: If you need it, you will be provided with business ‘start-up’ support to ensure that you are ‘ready to trade’ as soon as you leave the training course. Residential course: Before you start with IRUN, you will receive comprehensive training in the methods, strategies, and processes critical to business development and profit maximisation. Fast track success: The IRUN 'Fast Track' business mentoring programme is designed to minimise your start-up costs and maximise your early success. This programme is invaluable, helping you win business and position yourself as the internet business sales and marketing expert in your area. Weekly Online Meetings: Your opportunity to share in the latest developments from the centre and share success from the regions. Continuous Professional Development, (CPD): Learning is an ongoing process. With so much to master, you will receive ongoing active support, guidance, and mentoring throughout our programme of continuous professional development.

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IRUN Business Intelligence

IRUN Investor Package IRUN works with business owners who want to maximise sales and profits. Our primary goal is to nurture and delight our clients, so they are pleased to offer us testimonials, case studies, and above all, refer us to other companies looking to grow profitability. The comprehensive IRUN package provides all the tools and services necessary for a franchisee to run a successful and profitable business. The IRUN package comprises: 1.

Territory and exclusive licence

Residential training course

Local IRUN website

Continual Professional Development (CPD) days

Weekly conference call â&#x20AC;&#x201C; product and service update

Workshop materials and online seminars

End user/client website and email management console

IRUN InTouch CRM system and email / SMS marketing engine

IRUN Digital Media console

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IRUN Business Intelligence

Example of local IRUN website

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IRUN Business Intelligence

In more detail… 1. Territory and exclusive licence Each territory is configured to be approximately 12,500 businesses. This is considered the optimum territory one full time sales person could service, and achieve reasonable market penetration in a 5 year time frame. If required, the territory can be larger, but there must be a plan to employ staff to prospect the region efficiently.

2. Residential training course One week’s intensive training including accommodation and all training materials.

3. Local IRUN website Each IRUN territory has dedicated end-user client facing website.

4. Continual Professional Development (CPD) days Learning is an ongoing process. With so much to master, you will receive ongoing active support, guidance and mentoring throughout our programme of continuous professional development. These are typically one day sessions which are typically run once a quarter.

5. Weekly conference call This will provide you with a regular update of products and services in the IRUN Business Intelligence portfolio. It is also your opportunity to raise any issues or concerns as well as highlighting your success stories.

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IRUN Business Intelligence

6. Workshop materials and online seminars IRUN delivers a series of ‘free to attend’ weekly workshops covering many of the issues essential to the delivery of an effective internet marketing solution. Workshop attendance is available to anybody wanting to know more about internet marketing and the related activities necessary to be successful. The workshops have a number of very specific benefits:  

The subject matter is essential listening for anyone Wanting a successful internet marketing strategy.



They are a ‘FREE’ first sale opportunity, which can be used to ‘engage’ with prospects.



The series is a unique differentiator, delivering massive value without the client having to pay first.



An informed prospect is easier to sell to, and tends to buy more.



The workshops effectively demonstrate IRUN’s expertise in the internet marketing arena (just about all competition is weak in some or all areas).



The workshops provide a perfect way to engineer reasons to ask for feedback, testimonials, and hence case studies and they make referrals easier to obtain.

Satisfied attendees are motivated to refer; this is just one example of a strategy IRUN use to get referrals from people who are not even paying clients, (yet).

It was great that I didn't have to leave my desk and travel to a hotel to receive the information and take two or three hours out of my day, most of which would be travelling to and from a venue. I would recommend this seminar to any company that has a website, to make improvements, as well as to a company that is thinking about setting a website up in the future." Lorraine Gee Business Link www.businesslink.gov.uk

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IRUN Business Intelligence

7. End-user/client website and email management consoles The IRUN website console provides you and your clients with all the tools needed to build and manage a professional website. Features of the console include: Setup and design • High quality customisable templates and totally bespoke websites • Quick setup wizard • Site search, print, email, and navigation options • Flash headers and graphics. eCommerce • Full eCommerce capability complete with shopping cart • Payment gateway and merchant account integration • Sales and promotion module • Order process management (shipping / invoice / payment). Management Tools • Client data and account details • Secure access to manage client websites • Secure access to manage client domain name settings • Secure access to manage client email accounts • Management of account status, trial, active, suspended, delete • Management of client passwords and log-on details • Management of payment details and custom options • Various client reports.

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IRUN Business Intelligence

8. IRUN InTouch Customer Relationship Management (CRM) system The core of the IRUN value proposition is the drive to deliver outstanding client care and ongoing communications. To make this possible, the IRUN franchisee will be provided with a user log on for their own IRUN InTouch CRM system. InTouch is a simple to use but powerful customer database and communications tool which allows any individual, organisation or business to store details of their customers and communicate effectively with them via email or SMS. The system comprises the following: 

Email campaigns



SMS marketing

98% of UK businesses do



Managing contacts



Custom fields and reports



Campaign reports



Online calendar

not have any tools to manage customer data and typically they don’t stay in regular communications with their clients or prospects.



Documents repository.

A CRM system is a critical part of an effective sales and marketing process. IRUN franchisees receive full training and ongoing support to make sure they know how to use it to develop their own business and to advise clients. Effective use of the InTouch CRM system enables IRUN franchisees to operate in a much more efficient and professional manner than would otherwise be possible.

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IRUN Business Intelligence

9. IRUN Digital Media console IRUN Digital Media provides your clients with a viewing experience similar to that of printed catalogues and brochures without any loss of quality: • • • • • • • •

Instant catalogue deliverability via email Reduce marketing costs Increase the effectiveness of email campaigns Added value when embedded into your website Effective in driving visitors to your website More interactive user experience Release catalogue updates online as they happen Extract sections for seasonal or short-term promotions.

Recent Examples: http://view.irun-digital.co.uk/?id=planetpartitioning http://view.irun-digital.co.uk/?id=airtours http://view.irun-digital.co.uk/?id=gsq

10. Online meeting service To avoid having to travel to all meetings, and to increase client service and sales efficiency, each IRUN franchisee will have at their disposal a professional, quality, online meeting service. This will enable them to invite clients or others into online meetings for sales and provide instant client support services. The application used is standard across IRUN, and full training and ongoing support will be provided. © IRUN Solutions Ltd, August 2008. All Rights Reserved All prices quotes are exclusive of VAT

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IRUN Business Intelligence

Recent Investors IRUN Newbury – Karen Chapple “Just a quick note to say how much I enjoyed the Franchisee training course I attended. The week was very comprehensive and hugely informative, giving me not only detail on websites, but also ideas on how to go to market and how to build my business here in Newbury. The mentoring course is hugely comforting, to know that I have a dedicated person that will be available to help me, should I come across any particular problem. A great week, supported by great collateral and enthusiastic presenters. Well done!”

IRUN Bedford – Robert Umbleby “A high energy, fast paced, one-week immersion into what I believe is the best business opportunity I have ever been involved in/exposed to. Well done Steve, Dan and IRUN team. I look forward to making real money with you!”

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IRUN Business Intelligence

Recent Investors IRUN Docklands – Paul DeRidder “Day 1 – scepticism Day 2 – intrigue Day 3 – confused.com Day 4 – enlightenment Day 5 – excitement”

IRUN Telford – Peter Lisney “Great course. Back up and support systems look to be first class. You seem to have covered all the angles.”

IRUN Harrow – Mukesh Shah “The content/material and delivery was excellent, one of the best I have ever had. The hospitality couldn’t be better.”

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IRUN Business Intelligence

Recent Investors

IRUN Scottish Borders – Tom Donaldson "The course was a stimulating, innovative, enjoyable and also a stretching experience. The IRUN product portfolio has certainly now reached a critical mass of potent products and services destined to help accelerate the growth of our clients’ businesses."

IRUN Hudderfield – Greg Smith “An excellent and far reaching course. I learnt far more than just website stuff. I go away looking forward to testing my knowledge and sharing my enthusiasm. You have provided the tools – now it’s up to me!”

IRUN Banbury – Bob Young "A business based approach to small and medium sized companies, helping them to use their website as a powerful business development tool, is undoubtedly an irresistible business proposition."

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IRUN Business Intelligence

IRUN Financial Projections The results you achieve in your business are directly related to your sales activity, i.e. how many potential customers you present to, how many decide to go ahead and how long they take to make a decision. You can quickly estimate your own sales potential based on the number of sales visits you will make each week, (a dedicated sales person would be expected to generate at least 10 new prospects a week, and create all of their own appointments). Conservative performance estimates for a single operator would be: Deals Done

First Sale Value

Total Clients

Residual Income

Total Income

Total Year 1 Sales

70,000

10,780

80,780

Total Year 2 Sales

84,000

123

38,808

122,808

Total Year 3 Sales

84,000

190

67,032

151,032

These figures are based on a close rate of just 35%, and average order values of £1,250 (our current team are quoting close rates of greater than 60%). Additional products increased the average sales value in Quarter 1 of 2008. The new products also increased the residual income for extra seats on the InTouch CRM system and renewals on Digital Media. © IRUN Solutions Ltd, August 2008. All Rights Reserved All prices quotes are exclusive of VAT

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IRUN Business Intelligence

Your Investment IRUN is offering a complete solution to the investor. From day one, we want your focus to be on delivering value to your clients.

The minimum investment of £17,500 secures: • A place on the IRUN residential training course • An exclusive territory of approximately 12,500 businesses If available on the open market the full service package our investors receive would be valued at £41,450.

So what does the IRUN Investor Package comprise?

Note: • To secure an IRUN area and place on the training course = £5,000 • The balance of the payment is payable prior to joining the training course.

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IRUN Business Intelligence

Licensing Rights

£12,500

Each territory is configured to be approx 12,500 businesses. If the investor wishes, the territory can be larger, but there must be a plan to employ staff to prospect the region.

Residential training course

£5,000

One week’s intensive training at Eynsham Hall (www.eynshamhall.com), including accommodation and all training materials.

Also included in the IRUN package at no additional cost, worth… IRUN Business Intelligence website

£7,500

You will have your own local IRUN website. This is based on the same technology used for our largest clients, as a commercial website this would carry a price tag of at least £7,500.

Management console for WebBuildPRO websites

£6,000

This system allows you to manage your WebBuildPRO clients. Gross margins on the residuals are 50% in perpetuity; where the real long term financial value of the business lies.

Workshop materials and online seminars

£600

A series of FREE online weekly workshops available to all your customers and prospects. What is it worth to you to be able to offer 7 (and rising) hours of free consultancy?

IRUN InTouch CRM system

£5,000

IRUN has negotiated UK exclusivity for the business sectors in which we operate.

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IRUN Business Intelligence

Online meeting service

£150

IRUN has a multi user agreement with the premier online meeting service provider GoToMeeting.com (the same provider used by Norton and Dell for IT support contracts).

Weekly conference call

£1,200

Assuming each call has a nominal value of £25, this adds up to £1,200 per annum. There is no guarantee that these will continue to be necessary on a weekly basis, but there is no sign of the need for more ‘air-time’ reducing.

Continual Professional Development (CPD) days

£3,000

These are full day sessions and are currently run throughout the year. A full day’s training at this level would typically cost in the region of £750 a day, assuming 4 per year this would come to £3,000 a year.

IRUN Digital Media

£500

The £500 value attributed to the Reseller Console is the price that you will be able to levy if setting up your own resellers. However your margins will be higher and hence arguably the £500 should be much higher.

Total value if charged at full market rates : £41,450

Your Total Investment: £17,500

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IRUN Business Intelligence

Ongoing costs IRUN does not charge license fees, or force you to use expensive head office services: • IRUN does not charge a monthly license fee of any sort. • If you employ your own people to build sites, you keep 100% of the revenue. • Other than the telephone system and CRM system, you are not obligated to use any of the head office services if you do not wish to do so. • The agreement runs in perpetuity. • There are no annual renewal fees. In this ‘win-win’ proposition, our long term success is mutually dependent. Once you have made your initial investment, the only payment due to IRUN is a percentage of the ongoing residual income.

Your guarantee At the end of the residential training, if you feel you have made a mistake and wish to withdraw - simply say so. We will refund your investment (all bar £1,000 to cover the direct cost of the accommodation at the training course).

No Small Print There is No Small Print…

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IRUN Business Intelligence

A selection of our clients…

…plus many others

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IRUN Business Intelligence

What our clients have to say… www.lhplaw.co.uk “The new website that IRUN Solutions has produced for LHP Law LLP is a massive improvement on the old one, in its ease of use and design. The new website is clean and uncluttered, and extremely easy to update with new copy, downloads, new images and even whole web pages which fit in seamlessly with the ones created originally. We have already seen a steady flow of people using the quote facility and easy to use contact pages to find out more information about the services that we offer.” David H Lawrence, Business & Projects Assistant www.hottubbarn.co.uk "When we initially discussed the brief for the new Hot Tub Barn website, it was agreed that the primary aim of the site was to reach people looking for reasonably priced, mid-range hot tubs, and to make it easy for them to purchase. We didn’t want the site looking too “corporate” with huge amounts of information, but we did want it to be a clean, professional site that provided enough information for the customer to want to buy. And I think we have done just that! I am pleased that when a customer comes to the site, it is fresh and friendly, and they have easy access to everything they need to know. The video presentations were a great idea and now buying a new hot tub couldn’t be easier. Thanks again for all your help, support and great ideas!" Liz Carpenter – Hot Tub Barn © IRUN Solutions Ltd, August 2008. All Rights Reserved All prices quotes are exclusive of VAT

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IRUN Business Intelligence

Interested in learning more about the IRUN Investment Opportunityâ&#x20AC;Ś Simply Call: 01865 920003 Or Email: opportunity@irunsolutions.co.uk

We look forward to working with you

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IRUN Business Intelligence

The results and successes achieved by the directors, executive, staff, partners, associates, affiliates or franchisees of IRUN and end-user clients, as represented by the statements and testimonials in this prospectus; do not in any way predict the results you may necessarily achieve as an IRUN franchisee. The success of any business strategy, tactic or concept is mainly dependent on factors beyond the control of IRUN.

No representations, warranties, guarantees of success or income in becoming an IRUN licensee or by using these strategies, tactics, concepts and techniques are made by IRUN.

ÂŠ IRUN Solutions Ltd, 2008. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by means electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. IRUN Solutions Ltd is registered in England and Wales No. 5509300 Registered office: The Lodge, Crofton, Marlborough SN8 3DW

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