1. Growing the Buzz Courtney Bowles Laura Dorn Andrew Schindler
Nick Sonek
January 7, 2019
Solutions Consulting
Growing the Buzz

2. Who are We?
Courtney Bowles
Laura Dorn
Andrew Schindler
Nick Sonek

3. 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

4. Agenda Introduction Analysis Alternatives Implementation
Risk and Mitigation
Questions and Answers

5. What does Success Look Like For Us?
Profitability
Decrease Engineer Confusion and Slow Down

6. 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

7. 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

8. Technological Landscape
Smart Phones are Ubiquitous
Software as a Service
Data Security
Intro
Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

9. 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

10. 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

11. 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

12. Customers Acquiring Customer Upper Management
Effective Communication Solution
Proof of Concept
Customer Service
Use Customer
Deskless employees
No address or computer access
Smartphone access
Ease of Use
Intro
Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

13. 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

14. 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

15. Key Performance Indicators
Profitability
Client Retention
Operational Efficiencies
Client Expansion
Intro
Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

16. Unrestricted Expansion
Alternatives
Unrestricted Expansion
Get Acquired
Focused Growth
Intro
Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

17. 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

18. 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

19. 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

20. Analysis of Alternatives
Unrestricted Expansion
Get Acquired
Focused Growth
Profitability
Customer Retention
Operational Efficiencies
Customer Expansion
Compliance

21. Analysis of Alternatives
Unrestricted Expansion
Get Acquired
Focused Growth
Revenue
Customer Retention
Operational Efficiencies
Customer Expansion
Compliance

22. 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

23. Focused growth to……
Making Honey

24. Make Honey Internal Message HR Client Relationship Product Development
Marketing
Intro
Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

25. Internal Messaging 15 industries 3 industries Intro Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

26. 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

27. Internal Messaging 15 industries 3 industries
We must manage the message!
Employee Blog
Newsletters
s from the Top
Support for Switching Functionalities
Intro
Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

28. 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

29. 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

30. 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

31. 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

32. Client Retention Shifting away from some industry verticals
Need to increase renewals
Intro
Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

33. 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

34. Honeycomb Introducing: Product Development Intro Analysis Alternatives
Implementation
Risk and Mitigation
Questions and Answers

35. 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

36. 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

37. $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

38. Marketing: Acquiring Customer
“Under one brand and one roof”
Intro
Analysis
Alternatives
Implementation
Risk and Mitigation
Questions and Answers

39. 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

40. 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

41. 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

42. 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

43. 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

44. Revenue Projections
With These implementations we can see: Profitability by 2023

45. 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

46. 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

47. 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

48. 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

49. 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

50. Questions?
Thank you!

51. Appendix

52. BackUp- Cash Flow Analysis
Line Item
Value
Note
Revenue
$ ,788,212.50
*Assumption remains 65% of costs
Costs
Salary Cost
$ ,215,000.00
Rent of Locations
$ ,000,000.00
Admin OH
$ ,382,250.00
*Assumption 15% of Salaries
$ ,597,250.00
Profit (Loss)
$ (5,809,037.50)
Cash on Hand
$ ,350,000.00
*Assumpiton 30% of Funding retained
Losses a Month
$ (484,086.46)
Months left
8.99

53. Revenue projections Back up
Value
2019
2020
2021
2022
2023
Revenue
$ 10,788,212.50
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)
$ ,385.86
Revenue Growth
0.25
0.2
0.15
Cost Growth
0.1
0.05

54. 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.

55. 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

56. 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

57. 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

58. 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