Since the COVID19 pandemic began, the local labor market has become a global one. In recent months, according to a Leed study, from July 2021 to December 2021, there was a 156% growth in the hiring of Latin American talent by companies in the United States. This growth has brought problems to contracted employees because they receive their payment in dollars and they have to take care of changing it into their local currency, where they often lose around 6% due to the bank fees and exchange rate as happens in Mexico.
Peimi is developing a platform in which employers and contractors will be able to register and, by signing an agreement, start sending, requesting, and receiving international payments, in a transparent way, with a good exchange rate and the most important thing in the currency the employers want. We will save them the step of having to convert to their currency.
The main reason that we use Stellar is that it is very functional to find the best exchange rate available and also the Anchors help us handle the on and off-ramp process within the employer and the contractor, to ensure the speed and rates of the transactions along with the opportunity to expand our operations as long as we have anchors in the countries.
1) Home Page Image
2) Service Image
3) Login Image
4) Business Costumer Image
5) Pay to employees Image
6) Employee Dashboard
We are in the prototyping stage, creating the architecture of the platform and developing our user experience, having in notice our final users and B2B clients. We have been very careful on the technology used by our anchor partners so they can have a quick onboarding process on our system.
1) Launch Peimi MVP platform to the market. In this MVP our B2B client will be able to register the company and send his contractors an invite and send their contracts. These contractors will also be able to register their accounts and sign the contract.
Time-bound. 2 months
2): First 14 costumers acquisition plan.
Implement campaigns that will help us reach our break-even. Primarily through our contacts and partnerships. These B2B clients will be from the USA with our end users in Mexico.
Time-bound 3 months.
The platform will be hosted on Amazon Service. The application is developed by a team of UX, back-end and font-end. The product is built with React components and a Postgres database.In the legal aspect, we don´t need a special license, in legal terms we are going to hire a third party in order to be clear about the labor, tax and fintech aspects.
After the COVID19 pandemic, 68% of workers in Mexico manifested they would like to stay working at home. Within this segment, 15% work remotely in another country, and in most cases, they receive their payment in USD through traditional banking systems that generate high transfer costs, high transfer time, and exposure to volatile exchange rates when transferring the payments to their local accounts in México.
Develop a platform in which employers and contractors will be able to register and, by signing an agreement, start sending, requesting, and receiving international payments, in a transparent way, with the best possible exchange rate, and the most important thing in the currency the employers want.
HOW DO YOU USE STELLAR IN YOUR SOLUTION?
Stellar plays a very important role in our operation since it will be the network in charge of giving us the best exchange rate available at the time the payment is made to the worker. Anchors will help us handle the on and off-ramp process within the employer and the contractor, to ensure the speed and rates of the transactions along with the opportunity to expand our operations as long as we have anchors in different countries.
We are a B2B company. Our target market is focused on US-based IT startups remotely hiring Mexican contractors. The profile we define is a startup with 2 to 10 contractors. Ideal company:
Computer security startup with 10 people on staff. 6 remote positions are distributed in Mexico. They are paid 1000USD monthly. The owner has to make the salary payment 6 times to the different employee accounts. The startup pays 1000 USD but the contractor receives 940 dollars due to the loss of 6% of the payment caused by exchange rate and bank cost before taxes.
The way in which Peimi will generate income in the first instance will be by charging fees for each transaction that is made to the contractors, having the advantage that the fees of the anchors are very low (1.2% in total already counting on/off ramp) this gives us the opportunity to charge a 2.5% fee for each transaction and still be an attractive platform against the 6% that is paid on average for this type of transaction with other means of payment (world bank data).
In addition to this, the fee can be negotiated with the anchors depending on the volume of transactions that we have, which will allow us to have higher income for Peimi without manipulating the collection of our clients, always managing attractive fees.
Another plan that we will implement later will be the collection of monthly memberships for companies that have a significant number of contractors in order to offer a preferential fee for volume of transactions and generate extra income while captivating the client.
The way Peimi sets its prices is mainly to be competitive in the market against the competition and to offer a simple but efficient service.
Our prices against competitors are considerably lower (3.7% per transaction) due to the fact that our competitors offer services more focused on issues of compliance and HR solutions; we will only be the best platform for the payment of contractors, ensuring speed and the best exchange rate; which is decisive for our users to have since our market is not looking for a package of solutions greater than what they need, they are only looking for safe, fast payment and the best exchange rate.
Our customer service policy will always be to listen to them and be in constant improvement for their experience, as well as being one step ahead, being preventive in situations in which we internally perceive an area of opportunity, in order to hold the customer captive by giving our best service and with the best costs for your contractors
The credit policy is something that we are developing since it will be something that we will add over time as a solution for companies that do not have liquidity at a certain time when they need to make a payment, we will do it with a preferential cost to a traditional credit.
You could choose to include a sales forecast in your revenue model. If you’ve already made some sales, you can use those as a basis for your projections. If like most startups, you haven't sold anything yet, you’ll need to create estimates based on your market research, your proposed marketing strategies, and your industry data.
Peimi's financial plan begins with the development of our platform, which will cost us $15,000.00 USD to provide our clients with the best experience. Our next step will be the registration of the company in Mexico and the US, as well as legal advice to operate with transparency and legality in both countries. For this we will need $9,500.00 USD, while this legal process progresses, the MVP development of the platform will be completed in 2 months and we will be ready to operate.
An additional cost that we will have at the beginning of our operations will be the commercial consultancy in the US to be able to strengthen our knowledge of the market and train our sales force at the launch of Peimi, where we will later do it autonomously, this consultancy will cost us $10,000.00 USD.
Our forecasts tell us that we will need 14 companies that have 10 contractors and each contractor receives a salary of $2,000.00 USD, so we can reach the breakeven point (already counting the initial investment), to achieve this objective we contemplate 8 months of operation where we will be generating enough income to not have losses.
Our greatest costs at the monthly operation will be in our back end analyst and marketing who will help us obtain more clients and be able to have operations in a timely manner, in the sales force area our team has a certain level of experience in this section so In the first instance we will be doing it ourselves to reduce costs and generate more income for Peimi. Until we reach the break even point we will not be receiving a fixed income for the operation since first we want to reach this point and then with captive clients, active references, more knowledge in the market and stable volume of transactions we can negotiate the fees with the anchors in order to reduce the fees for the client.
Regarding CAC, each company (client) will cost approximately $143.00 USD, which represents almost all of our profit per client. We are aware that it should be less. We will be looking to acquire new clients in order to be able to reduce the CAC, using strategic marketing campaigns that will help us to find our target customer and generate efficient leads.
Costs and how we approach the number of break even point is detailed in the following tables.
Due to the pandemic, remote work grew from 4% to 9% in 2020, currently, we reached 15% and before 2023 it is estimated to reach 25%. Most of the companies that are hiring remotely are tech companies since tech roles are the easiest to do in this new format. These contractors usually live in Asia, mostly India and Pakistan, but the Latin American market is growing thanks to easier communication and the development growth of this area.
THREATS AND OPPORTUNITIES
Strengths: we are an interdisciplinary team of people with different backgrounds, related to business, finance, product and IT, with a clear focus on solving a specific problem. Part of the team has the problem we are solving, and currently are contractors for our ideal B2B client.
Weaknesses: Lack of deep experience in legal aspects of payroll compliance.
Opportunities: The problem has grown almost exponentially in the last 2 years and still has a big market to reach.
Threats: Compliance changes that affect the hiring process between a US company and a Mexican contractor.
At first, we are planning to hire a digital marketing agency to freelance Adwords Campaigns, that will promote our services with keywords in order to get traffic to a form in our webpage. Once we get a registration, we will put in touch with the prospect in order to begin with the sales process and we will put them in our email marketing list to send them weekly communications. Eventually, we will start to add more channels to our communication stack, such as Facebook for Lead Up or Linkedin for direct contact with qualified leads.
Regarding the sales process, the whole team (except from IT) will be reaching out to potential clients.
Our primary relationship will be with anchors that can help convert the FIAT money to a token and back plus the legal regulations this can have.
* The amounts shown are budget requests and not (yet) granted to the projects. During the Community Vote phase, voters can indicate whether the project deserves the amount it's asking for (budget request). The total pool of XLM available for SCF#11 is 8M XLM. SDF will allocate the XLM equivalent of the specified USD budget of the submissions with the most votes in descending order of rank until the earlier of (i) the XLM Pool is fully distributed (ii) there is not sufficient XLM remaining in the XLM pool to fully fund the next ranked submission or (iii) there are no remaining eligible submissions. The USD valuation of the budget request in XLM will be calculated using the CF Stellar Lumens-Dollar Settlement Price on December 5, 2022 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR). Learn more in the SCF Handbook.
*The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on July 5th as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
**The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on December 16, 2021 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
*The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on September 27, 2021 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
* The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on the date of transfer as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)