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BizeeBee Prototype Pitch


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Pitch for the initial BizeeBee prototype.

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BizeeBee Prototype Pitch

  1. 1. Simplifies your small business.September 2010 1
  2. 2. The ProblemNo web service provides an aggregatedsolution to organize, run, and check thehealth of a small business Existing services are built for large businesses Owners don’t have the capacity to manage finances - they hire accountants or bookkeepers They want to know the profitability of services and the overall cash flow Owners do not have a way to track the revenue generated and re-engage with customers who come in from a deal or referral Services charge for integration, which is prohibitively high for a small business budget ““ My present system is messy, hard to organize, and time consuming. L. Bostrum, Co-Director of Yoga Fitness in Campbell, CA 2
  3. 3. The Current Work-around 3
  4. 4. Our SolutionSmall businesses can organize and leverageavailable data through on aggregatedsolution Automates collecting payments, purchase history reveals profitability of services and makes it easier to forecast cash flow. Easy setup and maintenance - import customer data and export revenue data to existing services. Computes lifetime value of customers based on who is generating leads, paying on time, and what and how much they are purchasing. Tracks deal referrals and manages retention to reveal ROI of deal and re- engage with customer. ““ The thing that struck me the most about BizeeBee is the simplicity of the product. I am always looking for ways to streamline our process and make things easier at the front desk, so that we spend less time on the computer and more time with students. Juicy Sanchez, Co-Owner of Mission Yoga in San Francisco, CA 4
  5. 5. Easily import customers & automate process of sending a paymentCustomer receives payment requestvia email and clicks link to pay SBO tracks top customers by revenue & referrals 5
  6. 6. The MarketMicrobusinesses are the fastest growing segment Compose 95% of US Businesses* 26.5M Small Businesses with fewer than 10 employees** Microbusiness owners use the web a median of 17 hours a week***Focus on class-based microbusiness: Fitness US Fitness Industry revenues of $15.9B Yoga $5.7B in sales**** * ** 26.5M in 2007 *** businesses-are-heaviest-web-users **** franchising-bikram-yoga-new-twists.html 6
  7. 7. Yoga MarketConsumers There are 14M people practicing yoga in the US up from 11M in 2007* 30% have household incomes higher than $75k** 76.9% are women, 23.1% men, 25.2% are 25-34, 15.7% are 35-44, 26.9% are 45-54 “....the average yogi as a younger, affluent, educated single woman”.Studios Independent Studios make $25-50k a year Bikram Yoga and other franchises can earn over $250k a year e.g. Startup costs Iyengar franchise - $400, Bikram franchise costs $10k (ongoing: 5% gross revenues or $1000 per month ) * “Economic woes make yoga popular stress buster in US” yoga-popular-stress-buster-us-823 - 2010 ** Survey “Yoga in America”, 4000 individuals in 2004 7
  8. 8. Customer Acquisition Organically grown user base | 100+ SBOs Contacted small business bloggers and influencers The Hive (blog) small business resource - Launched April 2010 Growing 10+ SBOs a week - Launched August 2010 Partnerships Square, FreshBooks, Receivables Exchange Fitness Franchises Bikram Yoga, Bar Method, Daily Method, Gracie Brazilian Jiu Jitsu Search Engine Marketing and Social Media Twitter, Facebook Fanpages and small business communities Demo and attend Small Business Conferences SmallBizTechnology, BizTechDay 8
  9. 9. Competition Ease-of-Use Payments Cash Flow Customer Data Purchase Track Deals & Calculate Simplicity Bill Reminder Forecasting Import History Referrals Lifetime Value BizeeBeeMindBodyOnline FreshBooks Intuit PayPal SalesForce ZoHo 9
  10. 10. Financials Total Investment $100k Bootstrapped - $50k Angel Investor - $50k Current Burn Rate $20k month* 3 Full Time Employees 2 Part Time Employees Ask $1M* 12 months of runway Increase headcount and marketing budget Revenue Subscription based Flat pricing structure at $25/month + $50 setup fee Can also have charge based on size of business, number of studios, and usage * See Appendix A for breakdown 10
  11. 11. Team MANAGEMENT ADVISORS Manvinder Saraon Former CMO at Expertise in small business products and focused on helping business establish an online presence. Poornima Vijayashanker Aaron Patzer CEO & Founder Formerly Founder & CEO of 408.702.7118 Founding engineer at Learned how to build a simple and aggregated web service. Using the lessons from, her goal is to create a unique and profitable web service to address the pains of small and micro-business owners. 11
  12. 12. Appendix A Current Burn Rate $20k month Headcount - $15k (1 Designer, 2 FT Engineer, 1 PT Engineer, 1 PT Community Manager) Servers/Operations - $150 Legal - $5k Ask $1M* - Potential Burn Rate $60k Headcount - $45k (1 Designer, 1 VP of Engineering, 3 FT Engineers, 1 FT Marketing, 1 PT Community Manager) Marketing Budget - $5k (SEM, Conferences, Local PR Campaigns) Equipment/Office Space - $5k Legal - $5-10k * See Appendix for breakdown 12
  13. 13. Appendix B Customer Acquisition Milestones 6 months - 1000 active users 12 months - 5000 active users Revenue Milestones 800 active * ($25/month + $50 setup) = $60k (break-even) Upsell $100/month for medium sized businesses or managing multiple studios * See Appendix for breakdown 13