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Exit strategy Berkeley 2016

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Exit strategy Berkeley 2016

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Exit strategy Berkeley 2016

  1. Exit Strategy …to today The Master Key to Your Life A consumer-facing SaaS tool for creating and maintaining a customizable “map” of an individual (or family’s) online accounts 10 weeks 102 interviews “Eliminate the migraine of settling someone’s affairs after death” From the beginning… https://youtu.be/eFNaDRk7ZUM
  2. Exit Strategy The Master Key to Your Life Kelly Deutermann MBA Hustler/Picker/ Designer David Koh CS Hacker Rachel Park MBA/MPH Hustler/Picker/ Designer Ashmeet Sidana Mentor Engineering Capital
  3. Why did we pursue this idea?
  4. The pain was real “Three years after my dad died, I received an email from him. It was creepy and unnecessary.” - Kelly
  5. The market is big Total amount Americans spend on legal services a year Total amount Americans spend on legal services for death a year Total amount Americans spend on end of life affairs
  6. Exit Strateg y Legal information resources Online password/ profile managers End-of-life online management platforms Independent banks (professional trustees), law firms, forensic/public accountants Not widely-served Ad hoc approaches + digging through loved one’s email account + receiving magazine subscriptions and past due notices months after death + giving up and leaving accounts open (e.g. iTunes balance)
  7. Exit Strateg y Legal information resources Online password/ profile managers End-of-life online management platforms Independent banks (professional trustees), law firms, forensic/public accountants Not widely-served Ad hoc approaches + digging through loved one’s email account + receiving magazine subscriptions and past due notices months after death + giving up and leaving accounts open (e.g. iTunes balance)
  8. Exit Strateg y Legal information resources Online password/ profile managers End-of-life online management platforms Independent banks (professional trustees), law firms, forensic/public accountants Not widely-served Ad hoc approaches + digging through loved one’s email account + receiving magazine subscriptions and past due notices months after death + giving up and leaving accounts open (e.g. iTunes balance)
  9. Team dynamics and communications…a tale
  10. Kelly Deutermann David Koh Rachel Park Oski! I’ve signed a will, funded our trust, created a contingency plan for the kids… What’s a trust? A trust is only for super-rich people, right? We never found our Oski….
  11. Our first MVP
  12. Our first MVP Lesson learned: MVPs are critical to get your customers - and your own team - on the same page
  13. Getting to the Dirty Work: Customer Discovery
  14. Our customer segments converged & diverged Week 1: Everyone Terminally ill New parents Healthy baby boomers Military Disabled Type A, Young Professionals Recent death experience Week 2: Focus on identifiable triggers Terminally ill: Engaged in planning 25-35 Parents, w/2+ kids: Professionals, homeowners Engaging in family planning Healthy Adults >55: >$500k assets, have will/trust in place Adults 30-55, designated as executors/guardians for minor(s): Planned for executorship/ guardianship Week 3: Still diverging… Terminally ill: Engaged in planning 25-35 Parents, w/2+ kids: Professionals, homeowners Engaging in family planning Healthy Adults >55: >$500k assets, have will/trust in place Adults 30-55, designated as executors/guardians for minor(s): Planned for executorship/ guardianship Type A, Young Professional, Efficiency Oriented: Executed will/trust
  15. The value prop canvas became really complex!
  16. We picked and refined one customer segment Healthy Adults >55: >$500k assets, have will/trust in place Healthy Adults 50-65: >$500k assets, have will/trust in place 85 year old: “I don’t own a cell phone.” 68 year old: “Someone who’s working is very different from someone who has been retired for 10 years” Insight: Not all people 55+ are the same! Multiple interviews: “I do all the finances, so if I’m gone, my wife/husband is screwed. I’ve written down my accounts and passwords…and hope they can figure it out from there” Healthy Adults 50-65: >$500k assets, have will/trust in place, organized, comfortable with technology, manages household finances
  17. Which helped us learn how NOT to market to them “OMG WTF how does it know the date I recently accessed my account?” “Do you guys work for the CIA?" "This makes me feel so inadequate!” “OMG this is scary! I would need you to give me some Valium before looking at this more…”
  18. And helped us understand what’s important “It was a nightmare for my mom when my grandmother died” “I don’t want to be a burden on my family” “I use the internet for everything” “If I passed away, my husband would be at a loss for where to start” “My files are all in one place – I’m organized.” “My professional network is who I trust to provide credible recommendations”
  19. And helped us understand what’s important “It was a nightmare for my mom when my grandmother died” “I don’t want to be a burden on my family” “I use the internet for everything” “If I passed away, my husband would be at a loss for where to start” “My files are all in one place – I’m organized.” “My professional network is who I trust to provide credible recommendations” Lessons learned: 1. The customer’s experience with your product drives the insights; the technology behind it is a distraction. 2. Narrowing your CS is the only way to dive deep
  20. Through Customer Discovery Comes Channel Discovery!
  21. “This would be really helpful if it came through my estate attorney – as we were actively working through the estate planning process – instead of picking it up later.” ~ Customer “This would be an amazing intake tool! Increasing the efficiency of my operations is huge – I spend 80% of my time on 20% of my clients.” ~ Estate Attorney Starting to get signal... Let’s find some estate attorneys! “My professional network is who I trust to provide credible recommendations”
  22. 40 cold calls, emails, and visits to estate attorneys 1 email from our mentor (Ashmeet) to a contact, getting us into the Kasner Symposium 3 Interviews with estate attorneys 3 Interviews with estate attorneys …in 45 min Hustling helps… …but using your network helps even more!
  23. But estate attorneys weren’t our path to market • Fragmented market, with most in 2-5 person shops • Difficult to reach • Not particularly dissatisfied with current process • Not hugely interested in new technology • Ethical issues with preferring a particular vendor And we never found that route to our customers AARP Somewhat interested, more for healthcare directive, still reeling from association with “death panels” Financial planners Similar to estate attorneys Non-profits Love to extend their mission, but sensitive about “selling” a commercial product Third-party trustee More focused on very high asset clients
  24. This left gaping holes in our canvas. It became really difficult to proceed coherently through the left side of the canvas without a solid go-to-market strategy
  25. Marketing: - Largest likely cost - Without a verified primary channel, we’d have to pursue every channel to find the best fit - Solving the channel problem before moving to activities would have allowed for a more focused exploration of required marketing activities
  26. We got mixed signals on revenue model Subscription + Add positive quote about subscription – “I would have to pay for this for 30 years? I don’t know if I would like that…” One-time fee + “I would probably only set it up once, so a one-time fee is better” + “I’d rather it be on my desktop than on the Internet” – Add negative quote about subscription Free, ad- based + “Would rather have it free, I don’t mind ads.” – “I definitely wouldn’t want ads for this type of thing” – “You would have trouble finding advertisers, except maybe funeral homes. But then you actually want your customers to come back, that’s what makes them valuable to advertisers.” Lesson learned: In the real world, don’t move on until you’ve solved a glaring problem
  27. Where we ended up
  28. An MVP with a simpler message for a direct to consumer strategy
  29. That keeps focus on the human experience…
  30. And meets their needs in a lean startup environment
  31. Investment readiness: not desired…not required! We’ve identified an interesting business opportunity… ✓ Large market ✓ Fragmented competition ✓ Big pain point & excitement from customers But open questions remained… In this class, we were held up as a result of the channel issue and the course progress. GYST.com has a compelling story and proven channel to customers. Kelly will work with the GYST.com leadership team over the next semester to integrate our product into their offerings.
  32. Investment readiness: not desired…not required! We’ve identified an interesting business opportunity… ✓ Large market ✓ Fragmented competition ✓ Big pain point & excitement from customers But open questions remained… In this class, we were held up as a result of the channel trouble. GYST.com has a compelling story and proven channel to customers. Kelly will work with the GYST.com leadership team over the next semester to integrate our product into their offerings. Final Act: GYST.com is taking over where we are leaving off
  33. Thank you to Ashmeet Sidana, our mentor Mike Olson, our advisor Amit Kumar, our advisor Our classmates Teaching team Our interviewees
  34. Appendix
  35. Who we interviewed Traveled across the Bay Area + Video chats with people in Seattle, WA + Cleveland, OH + Tampa, FL + Washington, DC + Morocco + South Korea + Ketchakan, AK + Irvine, CA + And more...
  36. Who we interviewed 70 customers - 31 healthy 50+ - 17 young professionals - 10 young parents - 3 military - 3 terminally ill - 6 other 23 partners - 10 estate attorneys - 3 financial planners - 3 marketing pros - 3 non-profits - 2 startups - 1 hospice - 1 AARP 9 startups (for left side of canvas discussions) 102 total interviews
  37. More recent insight: Minimum sensitive info on platform; just enough required to offer value 1. Choose your accounts (no account information) 2. Generate account map + instructions on how to deal with accounts 3. Share with yourself or friends/family 2 death certificates Call 800-555-USAA Avg: 3-6 months 4 death certificates Call 800-555-CHUK Avg: 2-5 months 1 death certificates Call 800-555-AAPL Avg: 7 hours
  38. Business model canvas business model canvas with any changes marked in red, Multi-sided markets shown in different colors Terminally Ill: Goal for this week Healthy Adults >55: -> Website to store/ manage financial info in one place -> Easy (free) updates Provides control/ structure for communicating affairs 25-35yo parents: -> Streamlines funding trust without the hassle -> Life organizing tool Adults 30-55, designated as executors/guardians: Guided questions / checklist repository for answers Terminally Ill: Engaged in planning Healthy Adults >55: >$500k assets, have will/trust in place 25-35 Parents, w/2+ kids: Professionals, homeowners Engaging in family planning Adults 30-55, designated as executors/guardians for minor(s): Planned for executorship/ guardianship Week 2
  39. Business model canvas Terminally Ill: Organize for family member taking over affairs Healthy Adults >55: -> Website to store/ manage financial info in one place -> Easy (free) updates Provides control/ structure for communicating affairs 25-35yo parents: -> Streamlines funding trust without the hassle -> Life organizing tool Adults 30-55, designated as executors/guardians: Guided questions / checklist repository for answers Type A, Young Professional: Not be burdensome for family upon death Terminally Ill: Engaged in planning Healthy Adults >55: >$500k assets, have will/trust in place 25-35 Parents, w/2+ kids: Professionals, homeowners Engaging in family planning Adults 30-55, designated as executors/guardians for minor(s): Planned for executorship/ guardianship Type A, Young Professional, Efficiency Oriented: Executed will/trust Through word of mouth Partner with law firms as an intake tool Week 3
  40. Business model canvas Terminally Ill: Organize for family member taking over affairs Healthy Adults >55: -> Website to store/ manage financial info in one place -> Easy (free) updates Provides control/ structure for communicating affairs Parents of young kids: -> Streamlines funding trust without the hassle -> Life organizing tool Adults 30-55, designated as executors/guardians: Guided questions / checklist repository for answers Type A, Young Professional: Not be burdensome for family upon death Terminally Ill: Engaged in planning Healthy adults >55: >$500k assets, have will/trust in place Parents of young kids: Have a trust in place Adults 30-55, designated as executors/guardians for minor(s) Type A, Young Professional, Efficiency Oriented: Executed will/trust Through word of mouth from trusted advisors - Family/friends - AARP - Cancer/hospital social workers Estate planning attorneys More likely to DIY, not through lawyer - > more expensive to reach More likely to have urgency and higher WTP Not a bad segment, but may be busier, less urgency Hard to be the person asking someone else to get organized Week 4
  41. Business model canvas Terminally Ill: Organize for family member taking over affairs Healthy Adults >55: -> Website to store/ manage financial info in one place -> Easy (free) updates Provides control/ structure for communicating affairs Terminally Ill: Engaged in planning Healthy adults >55: >$500k assets, have will/trust in place Through word of mouth from trusted advisors - Family/friends - AARP - Cancer/hospital social workers Estate planning attorneys GET: - Professional referral - FB/Google ads KEEP: - Service/product upgrades - Loyalty incentives GROW: - Referrals - Upsell services Week 5
  42. Business model canvas Terminally Ill: Organize for family member taking over affairs Healthy Adults >55: -> Website to store/ manage financial info in one place -> Easy (free) updates Provides control/ structure for communicating affairs Automatically pulling together a picture of your financial/digital assets Terminally Ill: Engaged in planning Healthy adults >55: >$500k assets, have will/trust in place Through word of mouth from trusted advisors - Family/friends - AARP - Cancer/hospital social worker - Financial planner GET: - Professional referral - FB/Google ads KEEP: - Service upgrades - Loyalty incentives GROW: - Referrals - Upsell services One-time fee (for static download) Annual fee (subscription for ongoing access) Week 6
  43. Terminally Ill: Engaged in planning Healthy adults 50-65: >$500k assets, have will/trust in place - Life organizing tool: Tool to auto-map assets for own life organization - Not a burden on others - Save time/money: Avoid a costly call to attorney GET: - Professional referral - Bloggers / PR - FB/Google ads KEEP: Service upgrades, Loyalty incentives GROW: Referrals, Upsell services Web Through word of mouth from trusted advisors - Family/friends - AARP - Cancer/hospital social worker - Financial planner Financing: Friends, family, angels Physical: Company location, server hosting Human: Engineering, Marketing, Advisors/mentors Intellectual property: Trade secrets, patent One-time fee (for static download) Annual fee (subscription for ongoing access) Tiered subscription (cheaper for simpler situations) Software development to create functional site Encryption & security to establish peace of mind Marketing & PR to build confidence Fixed: Engineering, hosting costs, security licensing, company overhead Variable: Marketing/sales, miscellaneous office Non-profits: The Conversation Project Security firms Online Password Service PR firm Bloggers, news sources Associations: AARP Insurance companies: Life insurance, health insurance, long-term care insurance
  44. Terminally Ill: Engaged in planning Healthy (partnered) adults 50-65: - Sufficiently comfortable with technology - $500k+ assets, - Have will/trust in place, - Organized - Manage household finances Single women (50-65) - Sufficiently comfortable with technology - Organized - Manage own finances - Not wanting to be a “burden” to family members - Experienced a family member’s passing Single men (50-65) - Sufficiently comfortable with technology - Organized, planning oriented - Manage own finances - Experienced a family member’s passing - Life organizing tool: Tool to auto-map assets for own life organization - Not a burden on others - Save time/money: Avoid a costly call to attorney GET: - Professional referral - Bloggers / PR KEEP: Service upgrades, Loyalty incentives GROW: Referrals, Upsell services Web Through word of mouth from trusted advisors - Family/friends - AARP - Financial planner Financing: Friends, family, angels Physical: Company location, server hosting Human: Engineering, Marketing, Advisors/mentors Intellectual property: Trade secrets, patent One-time fee (for static download) Annual fee (subscription for ongoing access) Tiered subscription (cheaper for simpler situations) Create a functioning website Have an accessible Database Ensuring Security Attract customers: Target individual customers Company Financing Attract customers: Find large channels Address customer inquiries Find a place to work and keep the lights on Fixed: Engineering, hosting costs, security licensing, company overhead Variable: Marketing/sales, miscellaneous office Non-profits: The Conversation Project Security firms Online Password Service PR firm Bloggers, news sources Associations: AARP Insurance companies: Life insurance, health insurance, long-term care insurance
  45. Terminally Ill: Upon initial diagnosis Healthy (partnered) adults 50-65: - Sufficiently comfortable with technology - $500k+ assets, - Have will/trust in place, - Organized - Manage household finances Single women (50-65) - Sufficiently comfortable with technology - Organized - Manage own finances - Not wanting to be a “burden” to family members - Experienced a family member’s passing Single men (50-65) - Sufficiently comfortable with technology - Organized, planning oriented - Manage own finances - Experienced a family member’s passing - Life organizing tool: Tool to auto-map assets for own life organization - Not a burden on others - Save time/money: Avoid a costly call to attorney GET: - Professional referral - Bloggers / PR - Oncology social workers KEEP: Service upgrades, Loyalty incentives GROW: Referrals, Upsell services Web Through word of mouth from trusted advisors - Family/friends - AARP - Financial planner Financing: Friends, family, angels Physical: Company location, server hosting Human: Engineering, Marketing, Advisors/mentors Intellectual property: Trade secrets, patent One-time fee (for static download) Annual fee (subscription for ongoing access) Tiered subscription (cheaper for simpler situations) Create a functioning website Have an accessible Database Ensuring Security Attract customers: Target individual customers Company Financing Attract customers: Find large channels Address customer inquiries Find a place to work and keep the lights on Fixed: Engineering, hosting costs, security licensing, company overhead, Marketing/sales, miscellaneous office Variable: Commissions Non-profits: The Conversation Project Security firms (not in year 1) Online Password Service (not in year 1) PR firm (not in year 1) Bloggers, news sources Associations: AARP Insurance companies: Life insurance, health insurance, long-term care insurance

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