This document summarizes a web service called BizeeBee that aims to simplify organizing, running, and checking the health of small businesses through an aggregated solution. It discusses problems small business owners face with existing fragmented services, and how BizeeBee automates tasks like payments, tracks customer data, and provides insights. Financial details are provided on funding, current burn rate, revenue model, and growth milestones. The service targets microbusinesses like yoga studios.

1. Simplifies your small business.
September 2010
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2. The Problem
No web service provides an aggregated
solution to organize, run, and check the
health 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
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3. The Current Work-around
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4. Our Solution
Small businesses can organize and leverage
available data through on aggregated
solution
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
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5. Easily import customers & automate
process of sending a payment
Customer receives payment request
via email and clicks link to pay
SBO tracks top customers by revenue & referrals
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6. The Market
Microbusinesses 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****
* http://www.microbusinessresearch.org/
** http://www.microbusinessstrategies.com/ 26.5M in 2007
*** http://www.clickz.com/clickz/news/1704612/study-smallest-
businesses-are-heaviest-web-users
**** http://www.forbes.com/forbes/2009/0921/entrepreneurs-
franchising-bikram-yoga-new-twists.html
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7. Yoga Market
Consumers
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”
http://www.deccanchronicle.com/health/economic-woes-make-
yoga-popular-stress-buster-us-823 - 2010
** Survey “Yoga in America”, 4000 individuals in 2004
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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
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9. Competition
Ease-of-Use Payments Cash Flow Customer Data
Purchase Track Deals & Calculate
Simplicity Bill Reminder Forecasting Import
History Referrals Lifetime Value
BizeeBee
MindBodyOnline
FreshBooks
Intuit
PayPal
SalesForce
ZoHo
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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
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11. Team
MANAGEMENT ADVISORS
Manvinder Saraon
Former CMO at Homestead.com
Expertise in small business products
and focused on helping business
establish an online presence.
Poornima Vijayashanker Aaron Patzer
CEO & Founder Formerly Founder & CEO of
poornima@bizeebee.com
408.702.7118
Founding engineer at Mint.com. Learned how to build a
simple and aggregated web service. Using the lessons
from Mint.com, her goal is to create a unique and
profitable web service to address the pains of small and
micro-business owners.
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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
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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
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