PAPERWORK SIMPLIFIEDDigitizing the small business invoice space is an obvious solution, but it hasn’t been done yet. Weasked why.It turns out all the stakeholders are using different software, different programming languages, anddifferent formats, and no one is interested in adopting a central standard.So we did it for them.Nickler is a digital translator for small business invoices, allowing us to take any invoice, in any format,and seamlessly sync it with their bookkeeping software. Cloud based approval, flagging, and paymenton the your mobile phone. Deep SKU level analytics in real time, with no data entry. Sean Sherwood Don Burks February, 2013 www.nickler.biz
Hard work without talent is a shame, but talent without hard work is a tragedy. - Robert HalfSean Sherwood Don BurksFounder/CEO Co-Founder/CTOsean@nickler.biz firstname.lastname@example.orgSINergy Hospitality Group – Founder/CEO Metrolyrics.com – Senior Developer“top 50 tables in the world” – CondeNast Traveller Sentry Payments - DeveloperGrew from 0 to $6m+ annual sales jQuery A to Z - Author (due Aug 2013)Mojo4Business SMB Consulting – Founder/CEO Microsoft Training & Quality ManagerAdvising startups, executives, franchises, founders AdvisorsJeff Magnusson Playerize - Co-Founder/CEO RiverStyx (Sentry Payments) - Founder/CEOStephen Johnstone Boston Pizza Intl - CIOChung Wong Jump2Spot.com - Founder/CEOGarth Shoemaker Intel, Google – Software Engineer PHD - Human Computer Interaction, UBCDavid Carley Microsoft - Senior Business Solutions
The Problem Data Entry Rules the small business workflowSmall businesses spend upwards of $3500/month on bookkeeping, which is only the manual data entry andreconciliation of invoices and payments. Take away the data entry, and it takes under an hour per month tocomplete.
The ProblemHow are the smart small businesses currently entering their invoices?
We decided to Digitally integrate the small business invoice chainSupplier Small Business $$$
Business Model Nickler has three revenue streams: Monthly subscription $10/month to integrate Quickbooks with Nickler $10/month for automated inventory module Supplier Merchant Account $99 setup fee $35 monthly fee Invoice payment transaction fees ACH/Direct Deposit transaction fee Credit Card % fee and transaction fee
Market Size 30 million Over 30 million prospective Nickler usersNorth American Small Businesses Over 500k new small businesses start up every yearRevenue Conversion Monthly AnnualMonthly Fees $10 $120Transaction fee ACH/DD 20 transactions $5 $60Transaction fee CC $5000 @ 0.2% $10 $120Average Rev/User $25 $300
Network effects growth model User Connections Conversions Net referrals Supplier 200 SMBs 10% 20 SMBs Buyer 30 Suppliers 10% 3 Suppliers Individual 5 SMBs/Suppliers 1 1 Focused supplier sales powers the referral loop
User Acquisition Launch Growth Maturity Word of mouth, active social media community, evangelist users Engineered referral loop with Supplier customer listsDirect Email Channel Partners Advertising•Opt in list •Bookkeeping software •Adwords•Industry associations •Evangelist Users •Channel Partners•Existing network •POS software •Industry Publications•Direct Sales •Affiliates •WebinarsSEO PR•Organic search •Inbound Marketing•Optimized page markup •Trade shows •Media lists
User feedback“I’ll happily pay for this, are you sure you don’t want to charge for it?” – Jarrod Purnell (Wok Box)“I need all my suppliers to use this, let me give you a list” – Neil Wyles (Hamilton Street Grill)“So my investor can log in and see my purchases and cash flow in real time? Awesome” – Torben Sherwood (Valley Games)“This looks amazing, why hasn’t anyone done this yet?” – (multiple)“This will revolutionize my business, I’m in” – Neil Anderson (Madrone Custom Millwork)“Stop talking to me, I need this now, go build it” – Mark Brand (5 venues)
Key CompetitorsExisting and potentialKey Competitor: Potential Entrants: • No SKU level tracking • Existing user base • No Analytics • Acquire Tradeshift • Manual entry required • Evolve GoPayment • Documents focus • History of acquisitions Advantages Defensibility • Deep User Value • Integration with all • SKU / analytics focus platforms • Simple interface • SKU integration • Costs focus • Vertical focus
GoalsDevelopment Operations Promotion ScalingExpand bookkeeping Front end Developer Conventions and North American rollout integrations tradeshows Hot shot Designer Top 200 small business Expand mobile Inbound suppliers targeted Feature set VP Sales marketing/blogging Channel partnerships VP Marketing PR/Media campaign engaged ExploreWindows/Blackberry Outbound sales mobile campaign
PAPERWORK SIMPLIFIED Founders Blogs Sean Sherwood www.startupathlete.com Don Burks www.donburks.com Sean Sherwood Don Burks February, 2013 www.nickler.biz