business model, customer development, e245, engr245, lean launchpad, lean startup, stanford, startup, steve blank,

3. Helping self-employed keep more of what they make INTERVIEWS
Wendy De La Rosa
PhD, Marketing & BS Finance
Sahil Yakhmi
MBA & BS Computer Science
Sean X. Li
BS MS&E and CS
Parker Ence
MBA & BS Economics
Trent Hazy
MBA & BS Product Design
MARKET TYPE
DAY 1:
App for low-income gig workers
to predict and save for taxes
120 Niche
DAY 72:
SaaS platform for self-employed to
create and manage S-
Corporations

4. Cost Structure
-Software Development
-Sales & Marketing
Key Activities
- Software product dev
- Attract 1099 users
- Create multi-sided
platform value
Key Resources
- Core application to
automate 1099 financial
planning
- Human: marketing,
software UX/UI,
development
Original Business Model Canvas
Key Partners
- User acquisition partners
- Tax, accounting, legal
service providers
- Software dev and
distribution resources (app
store, cloud providers, etc)
Value Propositions
- Save Time & Money:
Simple and automated tax
and financial planning
- Good PR, contractor and
employee morale, and
legal risk mitigation
- Good PR, contractor and
employee morale, and
legal risk mitigation
- New customers and
revenue
Customer Relationships
- Self-serve / Automated
- ⬤⬤⬤ Dedicated
personal assistance
(enterprise sales)
Customer Segments
- 1099 Professionals
(commissioned sales,
programmers, nurses, etc.)
- Gig two-sided platforms
(Lyft, Upwork, TaskRabbit, etc.)
- Employers with many
1099 contract workers
(Google, Hospitals, etc.)
- Financial product
providers
(Geico, Vanguard, Blue Cross,
etc.)
Channels
- Direct or Indirect
(Partner), Web+Mobile
- ⬤⬤⬤ Direct, Salesforce
+ Web, Mobile
Revenue Streams
- Subscription fees
- ⬤⬤ per user fee
- Broker/referral commissions when users purchase
Week [1]

5. Cost Structure
-Software Development
-Sales & Marketing
Key Activities
- Software product dev
- Attract 1099 users
- Create multi-sided
platform value
Key Resources
- Core application to
automate 1099 financial
planning
- Human: marketing,
software UX/UI,
development
Original Business Model Canvas
Key Partners
- User acquisition partners
- Tax, accounting, legal
service providers
- Software dev and
distribution resources (app
store, cloud providers, etc)
Value Propositions
- Save Time & Money:
Simple and automated tax
and financial planning
- Good PR, contractor and
employee morale, and
legal risk mitigation
- Good PR, contractor and
employee morale, and
legal risk mitigation
- New customers and
revenue
Customer Relationships
- Self-serve / Automated
- ⬤⬤⬤ Dedicated
personal assistance
(enterprise sales)
Customer Segments
- 1099 Professionals
(commissioned sales,
programmers, nurses, etc.)
- Gig two-sided platforms
(Lyft, Upwork, TaskRabbit, etc.)
- Employers with many
1099 contract workers
(Google, Hospitals, etc.)
- Financial product
providers
(Geico, Vanguard, Blue Cross,
etc.)
Channels
- Direct or Indirect
(Partner), Web+Mobile
- ⬤⬤⬤ Direct, Salesforce
+ Web, Mobile
Revenue Streams
- Subscription fees
- ⬤⬤ per user fee
- Broker/referral commissions when users purchase
Week [1]
We had no idea who
our customer was

6. Stage 1
Stage 2
Stage 3
Today
PRODUCT:
Tax management: predict & save
CUSTOMER:
Low-income 1099 workers
(i.e. Uber drivers) - B2C

7. “I don’t worry about taxes.
The IRS lets me make monthly
payments for what I owe.”
- Michelle, Uber Driver
DISCOVERIES:
Freelancer interviews invalidated value prop and customer segment hypothesis...
Stage 1
Stage 2
Stage 3
Today

8. Cost Structure
-Software Development
-Sales & Marketing
Key Activities
- Software product dev
- Attract 1099 users
- Create multi-sided
platform value
Key Resources
- Core application to
automate 1099 financial
planning
- Human: marketing,
software UX/UI,
development
Original Business Model Canvas
Key Partners
- User acquisition partners
- Tax, accounting, legal
service providers
- Software dev and
distribution resources (app
store, cloud providers, etc)
Value Propositions
- Save Time & Money:
Simple and automated tax
and financial planning
- Good PR, contractor and
employee morale, and
legal risk mitigation
- Good PR, contractor and
employee morale, and
legal risk mitigation
- New customers and
revenue
Customer Relationships
- Self-serve / Automated
- ⬤⬤⬤ Dedicated
personal assistance
(enterprise sales)
Customer Segments
- 1099 Professionals
(commissioned sales,
programmers, nurses, etc.)
- Gig two-sided platforms
(Lyft, Upwork, TaskRabbit, etc.)
- Employers with many
1099 contract workers
(Google, Hospitals, etc.)
- Financial product
providers
(Geico, Vanguard, Blue Cross,
etc.)
Channels
- Direct or Indirect
(Partner), Web+Mobile
- ⬤⬤⬤ Direct, Salesforce
+ Web, Mobile
Revenue Streams
- Subscription fees
- ⬤⬤ per user fee
- Broker/referral commissions when users purchase

9. Stage 2
PRODUCT:
One-Stop-Shop for 1099 Benefits
(retirement, health, taxes)
CUSTOMER:
Large 1099 employers
(Google, Facebook, Intuit) - B2B
Stage 1
Stage 3
Today

10. Stage 2
“It sounds harsh, but we go out of
our way to make sure we don’t
provide anything that looks like a
benefit to our contractors.”
- HR Director
DISCOVERIES:
Employers are scared of 1099 misclassification risk from providing benefits
Stage 1
Stage 3
Today

11. DISCOVERIES:
“You are going way too broad.
It’s better to get a small number
of customers to love you.”
- Steve Weinstein (Office Hours)
Ohhhh #*$%
Stage 2
Stage 1
Stage 3
Today

12. REGROUPING: Internal brainstorm and pitch session
Stage 2
Stage 1
Stage 3
Today

13. Stage 2
DISCOVERIES:
Reviewed interview notes: high income 1099s were the enthusiastic ones
Stage 1
Stage 3
Today
“Some of our best customers are
Real Estate Agents… You should
consider targeting this group.”
- CEO, Everlance
Agents & Brokers
1) Ability to pay 2) Big tax savings 3) No misclassification

14. Cost Structure
-Software Development
-Sales & Marketing
Key Activities
- Software product dev
- Attract 1099 users
- Create multi-sided
platform value
Key Resources
- Core application to
automate 1099 financial
planning
- Human: marketing,
software UX/UI,
development
Updated Business Model Canvas
Key Partners
- User acquisition partners
- Tax, accounting, legal
service providers
- Software dev and
distribution resources (app
store, cloud providers, etc)
Value Propositions
One stop shop for
retirement, tax, and health
insurance benefits:
- Simplify buying benefits
for contractors
- Help 1099 employers
attract and retain
contractors
- Drive new revenues for
financial product providers
Customer Relationships
- Self-serve / Automated
- ⬤⬤ Dedicated personal
assistance (enterprise
sales)
Customer Segments
- 1099 Professionals
(commissioned sales,
programmers, nurses, etc.)
- Employers with many
1099 contract workers
(Google, Hospitals, etc.)
- Financial product
providers
(Geico, Vanguard, Blue Cross,
etc.)
Channels
- Direct or Indirect
(Partner), Web+Mobile
- ⬤⬤ Direct, Salesforce +
Web, Mobile
Revenue Streams
- Subscription fees
- per user fee
- Broker/referral commissions when users purchase

15. PRODUCT:
Tax management: predict & save
CUSTOMER:
High-income brokers (starting w/
real-estate & insurance) - B2C
Stage 1
Stage 2
Stage 3
Today

16. Stage 3
Channels: Facebook Ad Experiment
Many interviews with CPAs → many methods to reduce 1099 taxes for customers.
But which value prop is strong enough to support digital B2C customer acquisition?
Stage 1
Stage 2
Today

17. Channels: Facebook Ad Experiment
Many interviews with CPAs → many methods to reduce 1099 taxes for customers.
But which value prop is strong enough to support digital B2C customer acquisition?
Stage 3
Stage 1
Stage 2
Today
WINNER:
1.8% CTR
Beat others by 2x

18. Cost Structure
-Software Development
-Sales & Marketing
Key Activities
- Software product dev
- Attract 1099 users
- Create multi-sided
platform value
Key Resources
- Core application to
automate 1099 financial
planning
- Human: marketing,
software UX/UI,
development
Updated Business Model Canvas
Key Partners
- User acquisition partners
- Tax, accounting, legal
service providers
- Software dev and
distribution resources (app
store, cloud providers, etc)
Value Propositions
1099 Tax prediction and
savings tool
- Drive new revenues for
financial product providers
Customer Relationships
- Self-serve / Automated
- Dedicated personal
assistance (enterprise
sales)
Customer Segments
- 1099 Professionals (real
estate & insurance brokers)
- Financial product
providers
(Geico, Vanguard, Blue Cross,
etc.)
Channels
- Direct or Indirect
(Partner), Web+Mobile
- Direct, Salesforce + Web,
Mobile
Revenue Streams
- Subscription fees
- Broker/referral commissions when users purchase

19. Stage 3
PRODUCT:
S-Corp Creation & Management:
Save on Taxes, Reduce Liability
CUSTOMER:
High-income brokers (starting
with real-estate & insurance) - B2C
Stage 1
Stage 2
Today Identified problem + solution…
but does the business make sense?

20. Final MVP
https://teamthrive.herokuapp.com/
“This is exactly what I
need for my business”
- Grant Koury, Insurance Broker

21. 1. Savings Calculator (FREE)
– Calculate: How much you’ll save with an S-Corp
2. Incorporation ($100)
– Set up your S-Corp quickly, without touching government forms
3. Ongoing Company Maintenance ($16/mo)
– Pay yourself (payroll)
– File quarterly forms and taxes
– Renew franchise with state
Customer Relationships
GET
KEEPStage 3
Stage 1
Stage 2
Today
GROW More fintech tools and services for self-employed: Health Insurance, Retirement

22. KEY PARTNERS
- User acquisition
partners (unions, trade
organizations,
conferences)
- Tax, accounting, legal
service providers
- Software dev and
distribution resources
(app store, cloud
providers, etc)
KEY RESOURCES
- Core application to
automate incorporation
and maintenance
- Human: marketing,
CPA, lawyer, software
UX/UI, development
KEY ACTIVITIES
- Customer acquisition
- Predict tax savings
- Create new S-corps
(filings, documents)
- S-Corp management
(compliance, tax, payroll,
licenses)
Key Activities, Resources, Partners
Stage 3
Stage 1
Stage 2
Today
Validated
through
interviews,
research,
modeling:

23. Modeling Tax Code to Predict Savings
Stage 3
Stage 1
Stage 2
Today
KEY ACTIVITIES:
Typical user (>$75K) saves
$4,000+ per year

24. Cost Structure
-Software Development
-Sales & Marketing
Key Activities
- Software product dev
- Attract 1099 users
- Create multi-sided
platform value
Key Resources
- Core application to
automate 1099 financial
planning
- Human: marketing,
software UX/UI,
development
Updated Business Model Canvas
Key Partners
- User acquisition partners
- Tax, accounting, legal
service providers
- Software dev and
distribution resources (app
store, cloud providers, etc)
Value Propositions
1099 Tax prediction and
savings tool
- Drive new revenues for
financial product providers
Customer Relationships
- Self-serve / Automated
- ⬤⬤ Dedicated personal
assistance (enterprise
sales)
Customer Segments
- 1099 Professionals
(commissioned sales,
programmers, nurses, etc.)
- Financial product
providers
(Geico, Vanguard, Blue Cross,
etc.)
Channels
- Direct or Indirect
(Partner), Web+Mobile
Revenue Streams
- One time incorporation fee ($100)
- Subscription fees ($16/ month)

25. “It’s very difficult to monetize free
platforms. You need millions of
users…I wished we would have
charged from the beginning.”
-Donna Wells,
ex-CMO of Mint
REVENUE STREAMS:
Invalidated 2-sided platform hypothesis. Now charging SaaS fees directly
Stage 3
Stage 1
Stage 2
Today

26. Convert to
Paid User2
2.00%
Conversion
Estimate
Paid
Acquisition1
$0.58 - $0.89 CPC
1.84% CTR
Actual - Facebook Ads
$29 - $44
Customer Acquisition Cost
Stage 3
Stage 1
Stage 2
Today
Quarterly
Churn2 8%
Estimate
Pricing1 $100 + $16/mo
Proposed
$557
Gross Lifetime Value
Discount
Rate3 5%
Estimate
>
Cost Structure
Our most important cost is CAC, which must be less than LTV

27. $10B Total Addressable Market
(60M US independent contractors) * (50% earning above $50K) * (60% not incorporated) * ($557 LTV)
$777M Served Available Market
(3.1M US real estate and insurance agents ) * (60% earning above $50K) * (75% not incorporated) * ($557 LTV)
Sources: IRS Entrepreneur CNSNews
2018 2019 2020
Active Users 434 7,055 39,196
New Filings 2,700 21,938 111,059
Filing Fees $ 270,000 $ 2,193,750 $ 11,105,859
Maintenance Fees $ 31,516 $ 763,362 $ 4,656,468
Gross Revenue $ 301,516 $ 2,957,112 $ 15,762,327
Market Sizing & Revenue Forecast

28. Competitive
Landscape

29. Our
Advantage
Uniquely designed for
1-person corporation
Everything they need and nothing they don’t

30. KEY PARTNERS
- User acquisition partners
(unions, trade
organizations,
conferences)
- Tax, accounting, legal
service providers
- Software dev and
distribution resources (app
store, cloud providers, etc)
CUSTOMER SEGMENTS
High-Income (+$75K)
1099 Professionals
Real Estate Brokers
Sales People
KEY RESOURCES
- Core application to
automate incorporation
and maintenance
- Human: marketing, CPA,
lawyer, software UX/UI,
development
KEY ACTIVITIES
- Customer acquisition
- Predict tax savings
- Create new S-corps (filings,
documents)
- S-Corp management
(compliance, tax, payroll,
licenses)
CUSTOMER
RELATIONSHIPS
- Self-serve / Automated
- Get: Tax calculator
- Keep: Incorporation,
ongoing corp maintenance
- Grow: Health, retirement
COST STRUCTURE
-Software Development
-Legal fees
-Sales & Marketing
Final Business Model Canvas
CHANNELS
- Direct B2Contractor
- Digital: Web+Mobile
REVENUE STREAMS
- One-time incorporation fee ($100)
- Subscription fees ($16 / month)
Week [10]
VALUE PROPOSITIONS
- Cut self-employment tax
by ~75%
- Save time on filing forms
(2+ hrs)
- Reduce legal liability
- Autopilot S-Corp
maintenance
(hard → easy)

31. KEY PARTNERS
- User acquisition partners
(unions, trade
organizations,
conferences)
- Tax, accounting, legal
service providers
- Software dev and
distribution resources (app
store, cloud providers, etc)
CUSTOMER SEGMENTS
High-Income (+$75K)
1099 Professionals
Real Estate Brokers
Sales People
KEY RESOURCES
- Core application to
automate incorporation
and maintenance
- Human: marketing, CPA,
lawyer, software UX/UI,
development
KEY ACTIVITIES
-Maintain a secure
dashboard
-Link to bank accounts
-File regulatory forms
-Pay quarterly taxes
-Limit regulatory liability
CUSTOMER
RELATIONSHIPS
- Self-serve / Automated
COST STRUCTURE
-Software Development
-Legal fees
-Sales & Marketing
Final Thrive Business Model Canvas
CHANNELS
- Direct
- Web+Mobile
REVENUE STREAMS
- One-time incorporation fee ($100)
- Subscription fees ($200 / year)
Week [10]
VALUE PROPOSITIONS
- Cut self-employment tax
by ~75%
- Save time on filing forms
(2+ hrs)
- Reduce legal liability
- Autopilot S-Corp
maintenance
(hard → easy)

32. Continuing with Thrive
Continuing + Low-Income 1099s
Data science internship
Searching for new startup idea
Pursuing product management
What’s
next?