Growing the Buzz Courtney Bowles Laura Dorn Andrew Schindler Nick Sonek January 7, 2019 Solutions Consulting Growing the Buzz
Who are We? Courtney Bowles Laura Dorn Andrew Schindler Nick Sonek
Executive Summary What does Beekeeper need to do in order to survive? Question What does Beekeeper need to do in order to survive? Goal Expand customer base, decrease operational inefficiencies, increase profitability Alternatives Unrestricted Expansion Get Acquired Focused Growth KPI’s Profitability Customer Retention Operational Efficiencies Customer Expansion
Agenda Introduction Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
What does Success Look Like For Us? Profitability Decrease Engineer Confusion and Slow Down
Industry Analysis Industry Drivers Competing for market share Low barriers to entry Educational focus for marketing Early adopters are customers Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Manufacturing / Hospitality Competitive Analysis Name Geographic Focus Industry Focus Staffbase US / Europe Manufacturing / Hospitality Red e App US Manufacturing Crew Retail Key Consideration: These players are targeting similar high-turnover cyclical industries – staying away from data-heavy areas. Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Technological Landscape Smart Phones are Ubiquitous Software as a Service Data Security Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Value Proposition Gains -Timely communication -Remote access -Ease of Use Job Communicate with deskless employees Pains -Absenteeism -Low Productivity Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Value Proposition Gain Creators Gains -Mobile App -Remote access -Intuitive Interface Gains -Timely communication -Remote access -Ease of Use Job Communicate with deskless employees Product The Beehive Pains -Absenteeism -Low Productivity Pain Killers -Schedule Posted -Messaging App -Real time communication Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Difficulties of a Disruptive Culture How can we build sustainable success? Higher employee turnover rates Must be disruptive and focused Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Customers Acquiring Customer Upper Management Effective Communication Solution Proof of Concept Customer Service Use Customer Deskless employees No email address or computer access Smartphone access Ease of Use Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
We Have 9 Months of Cash Left Cash Flow Analysis Revenue 10.8 Million Costs 16.6 Million Loss (5.8) Million Cash on Hand 4.3 Million Key Assumptions: 1. Revenue Remains 65% of Costs Today 2. Overhead is15% of Salaries 3. 30% of our Serie and Seed Cash Remain We Have 9 Months of Cash Left Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Employee Analysis Year End Total Engineers Ratio Employee Growth Rate 2015 15 2 13% 2016 38 5 153% 2017 87 14 16% 129% 2018 118 36% CAGR 67% We are growing at a fast rate and keep our employee mix relatively constant Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Key Performance Indicators Profitability Client Retention Operational Efficiencies Client Expansion Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Unrestricted Expansion Alternatives Unrestricted Expansion Get Acquired Focused Growth Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Unrestricted Expansion Growth is the way forward Continue to focus on any interested industry Act on compliance capabilities due to change in Europe’s data privacy laws Pros Quick Fix Investor Payoff Cons Emotional Attachment Give up control Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Get Acquired Pros Cons Sell Beekeeper to a competitor. Estimated selling price $25mm Possible buyers include: Facebook Microsoft Pros Quick Fix Investor Payoff Cons Emotional Attachment Give up control Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Focused Growth Pros Cons Focus on our 3 key industries Hospitality Manufacturing Retail Fix internal issues with employees and inefficiencies Consider new add on products and in app improvements Pros Relatively easy transition Cost effective Increase revenues Customer Focus Cons Possibility of being too focused Must find a way to address customers outside of 3 main verticals Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Analysis of Alternatives Unrestricted Expansion Get Acquired Focused Growth Profitability Customer Retention Operational Efficiencies Customer Expansion Compliance
Analysis of Alternatives Unrestricted Expansion Get Acquired Focused Growth Revenue Customer Retention Operational Efficiencies Customer Expansion Compliance
Why We Chose This Option Growing in focused, target markets Managing message to gain gravitas and reach desired clients Working within our financial constraints Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Focused growth to…… Making Honey
Make Honey Internal Message HR Client Relationship Product Development Marketing Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Internal Messaging 15 industries 3 industries Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
We must manage the message! Internal Messaging 15 industries 3 industries We must manage the message! Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Internal Messaging 15 industries 3 industries We must manage the message! Employee Blog Newsletters Emails from the Top Support for Switching Functionalities Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Rebuild Sales and Development Relationship What we know? Disconnect between these two functional areas. Sales has been promising products Development has been unable to deliver. How to Bridge Gap? We’re a communications company – let’s open channels! Educational focus, reconcile differences for common goal. Key Takeaway: We must create a more engaged, focused team. Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Rebuild Sales and Development Relationship What we know? Disconnect between these two functional areas. Sales has been promising products Development has been unable to deliver. How to Bridge Gap? We’re a communications company – let’s open channels! Educational focus, reconcile differences for common goal. Key Takeaway: We must create a more engaged, focused team. Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Human Resources Internal Structure Engineering Team Shift in Sales and Marketing Focus Manage Message 15 Industries 3 Industries Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Human Resources Managing Current Employees Hiring New Employees Training Open Lines of Communication High Turnover in Start Ups Potential Attrition Hiring New Employees Only if funding is available and clients are there Culture Fit Prevent SF Scenario Detailed hiring process Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Client Retention Shifting away from some industry verticals Need to increase renewals Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Client Retention Shifting away from some industry verticals Need to increase renewals Open communication Superior Customer Service Highlight Future product Development Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Honeycomb Introducing: Product Development Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Honeycomb Physical Device Small Profit Akin to Amazon Fire HD Physically fixed to Janitorial Carts, Housekeeping, Valets, Sales Floors Small Profit Sold near cost to encourage adoption Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Honeycomb Gains and painkillers Stickiness Small investment Simplified training and implementation Data Security Company data exists on owned devices Can be tracked New Revenue Data Analytics Task managing Future Development Inventory management Honeycomb
$4.5 Million in additional profit Sales From Honeycomb Assume 15% adoption 150,000 devices sold Price: $130 Cost $100 $4.5 Million in additional profit
Marketing: Acquiring Customer “Under one brand and one roof” Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Marketing: Acquiring Customer “Under one brand and one roof” Testimonials Website Personal References Conferences/ Tradeshows Industry-Specific In-person interaction with decision makers Trade Specific Publications Advertorials Interviews Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Marketing: Acquiring Customer “Under one brand and one roof” Testimonials Website Personal References Conferences/ Tradeshows Industry-Specific In-person interaction with decision makers Trade Specific Publications Advertorials Interviews Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Marketing: Acquiring Customer “Under one brand and one roof” Testimonials Website Personal References Conferences/ Tradeshows Industry-Specific In-person interaction with decision makers Trade Specific Publications Advertorials Interviews Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Marketing: Use Customer “Back of house” Methods Cafeteria Locker Room Break Room Posters Flyers Word of Mouth Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Marketing: The Honeycomb Market to acquiring customer Continue advertorials, tradeshows, and publications Bonus for employees who sell Honeycomb Promotion for existing customers to upgrade Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers
Revenue Projections With These implementations we can see: Profitability by 2023
Budget Outsource Honeycomb Development 200,000 7/19-9/19 Item Amount Timing Outsource Honeycomb Development 200,000 7/19-9/19 Bonuses for Honeycomb Sale 100,000 12/19 Marketing 150,000 2019 Internal Marketing 50,000 1/19-2/19 Total: 500,000
Timeline 2019 2020 2021 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Internal Messaging Follow up blogs/newsletters Outsource Design Presales of honeycombs Prodution of Honeycomb Client Messaging Marketing
Existing Customers Unhappy Risks & Mitigation Impact Insolvency Raise more capital Employee Backlash Try to mitigate with open communication Streamline by attrition & replace if needed Existing Customers in non-focus Verticals Unhappy Open communication & continued support Insolvency Existing Customers Unhappy Employee Backlash Probability
Key Performance Indicators - Metrics Profitability Client Retention Operational Efficiencies Client Expansion Profitable by 2020 Retain 85% of customers up for renewal Streamline internal processes with engineers Increase client base by 15% by 2020
Executive Summary Revisited Question What does Beekeeper need to do in order to survive? Goal Expand customer base, decrease operational inefficiencies, increase profitability Alternatives Unrestricted Expansion Get Acquired Focused Growth KPI’s Profitability Customer Retention Operational Efficiencies Customer Expansion
Questions? Thank you!
Appendix
BackUp- Cash Flow Analysis Line Item Value Note Revenue $ 10,788,212.50 *Assumption remains 65% of costs Costs Salary Cost $ 9,215,000.00 Rent of Locations $ 6,000,000.00 Admin OH $ 1,382,250.00 *Assumption 15% of Salaries $ 16,597,250.00 Profit (Loss) $ (5,809,037.50) Cash on Hand $ 4,350,000.00 *Assumpiton 30% of Funding retained Losses a Month $ (484,086.46) Months left 8.99
Revenue projections Back up Value 2019 2020 2021 2022 2023 Revenue $ 10,788,212.50 13485265.63 16182318.75 18609666.56 21401116.55 Costs $ 16,597,250.00 $ 18,256,975.00 $ 19,169,823.75 $ 20,128,314.94 $ 21,134,730.68 Profit $ (5,809,037.50) $ (4,771,709.38) $ (2,987,505.00) $ (1,518,648.38) $ 266,385.86 Revenue Growth 0.25 0.2 0.15 Cost Growth 0.1 0.05
Cultural Differences at WhatsApp After acquisition by Facebook, WhatsApp founders left the company. Highlights tension within start-up environments; difficulties of having a disruptive culture.
Competitive Reaction What Could Happen How We React A competitor dials in on single industry A competitor launches own physical product A competitor specifically targets our customers How We React Three solid options – keep beachhead of hospitality First mover advantage and superior customers service Foster strong customer relationship
Drill Down on Hiring Process Identify key skills Write job description focusing on key skills Look internally Hiring Process (consider outsourcing) Onboarding Open Lines of Communication with HR Future Training
Sell to Facebook or Microsoft Contingency Plan Sell to Facebook or Microsoft 25 Million Valuation Benefit to them: 1.Allows them to eliminate a competitor 2. Instantly gains share in market they are not in yet
Bring out the Best in Each Other Bee Brave Bee Proactive Bee Open Bring out the Best in Each Other Keep it Simple Core Values Intro Analysis Alternatives Implementation Risk and Mitigation Questions and Answers