4. Retractable High Heel ShoesAdditional Highlights
5. Pivots
6. Hypotheses Concluded Key PartnersKey Activities Value Prop
CustomerCustomer Manufacturing Product quality Aesthetics is
chiefabove all Rel.Segment partners will be Customer service
Reliability critical Marketing/promo Shoe should not look Retention
High end shoe storestionsfunctional Referrals need to carry the
Reducing 2-shoe shoes in order for burden is important high-end
customers Versatility important to see and purchase Women who wear
high themKey Resources #1 reason women wear heels to work would
Online partnershipshigh heels to work is to Channelsfind our
product Shoe designer is look professional (e.g. Zappos) will be
appealing important imperative The #1 reason women Online Shipping
Fundingwear high heels is to Boutique & Dept partnerships will
be feel sexy/stylishstores not an option critical Customers find
the until demand proven TV partnerships (e.g.design of the(online
& trunk QVC) will be telescoping heel shows)
importantaesthetically pleasing Cost structure Revenue streams
Customers purchase 3-4 pairs every year for going out Encourage
repeat revenue by offering different styles fordifferent seasons
Total Validated Hypotheses: 22 Total Invalidated Hypotheses: 3
7. 3 Most Surprising Lessons Value Prop.: Aesthetics is chief
above all Key Resources: Shoe designer is imperative Channels:
Boutique & Dept stores not anoption until demand proven (online
& trunkshows)
8. Break-ups and TherapyAdditional Highlights
9. Hypotheses Concluded Key PartnersKey Activities Value
PropCustomer Customer Fit w/counselor is most Developing match imp.
attributeRel. Segment algorithm requires Organizing group Online
acquisition collaboration w/ therapy is a pain point Only small
segment ofmodel works for psychologistsfor therapists people
looking to betherapy matched with (paid) Insurance wont pay for
Credentials / credibility group counselors therapy unassociated is
an important attribute Adults experiencing a w/ diagnosed condition
People dont see need fortimely and relevant Corporations unwilling
preventative counselingtrauma to sponsor therapyKey Urgency is a
keyChannels Teenagers who dont want programs not covered by
insuranceResourcesrequirement for seekinga counselor to talk to
their parents or friends about issues Price is a key Couples going
through Heavy marketing & PR People strongly preferimpediment
to seeking arelationship issues required to change to meet
counselors in-counselor Adults who are isolated perception person
Anonymity is a and have sharedprerequisite for seeing
aexperiencecounselor Costs structureRevenue streams Customer
Acquisition cost via Google Adwords campaign Adverse selection
problem when charging counselors monthly vs. per-acquisition1:1
in-person therapy match is a transactional business modelBetter
control of revenue stream w/ group Total Validated Hypotheses: 15
Total Invalidated Hypotheses: 6
10. 3 Most Surprising Lessons Value Prop.: Fit is the top
priority when findinga therapist, more than cost, creditability
orurgency. Revenue Streams: Adverse selection problemwhen charging
counselors monthly vs. per-acquisition Key Partners: Insurance will
not pay fortherapy for an undiagnosed condition
11. Mystery MingleOverview and AdditionalHighlights Mystery
Mingle is a system which coordinates small to medium gatherings,
automates ice-breakers and aids in reservations or food
ordering.
12. Ecosystem
13. Product-Market Fit
14. Key MetricsConsumer sees ad 4 % delivery3 Usage rate (%
sign-up who plan) (5% revenue FacebookPlan Event Mystery Mingle
Analyze1 CPC friends profile Select prix- Order foodSite fixe
menufor delivery GoogleGuest listsuggestions5 % prix fixe2
ConversionCalendar(15% revenue)rate (sign-up)check:
suggestdate/timeGuestsGuestsCustomer signs-uppre-pay chips inSelect
game themeLinks to Facebook &Google+ Organizer or friend hosts
next event% Participants6 % Returning 7turned organizers
15. Google AdwordsCTR-KeywordsMingle208 clicks in 7 days dating
serviceAvg. Cost per click online dating site online dating
servicesdisplay networks= $0.16 0% 5%10% 15% 20% 25%Google
Search=$1.54CTR-Display Networksgrated.com asiandating.com
faxo.commetric-conversions.orgmatch.comcaribbeancupid.comindia-forums.comanswers.com
beautypageantnews.com latinamericancupid.comtinybytes.me 0%
20%40%60%80% 100%
16. Business model leverages network effectsNumber of
organizers Network effects800,000P Participant700,000 P P P O
Organizer600,000500,000 P O P400,000300,000P P200,000 P100,000PP
0Year Year Year Year Year P OP 12345 PP
17. Gross Margin Profitability analysis Year 1Year 52
Conversion rate (percent who sign-up)10% 15%3 Usage rate (percent
who organize a mingle) 10% 18%Total organizers13,200 704,3326 %
Returning50%7 % Participants turned Organizers 10%Delivery revenue4
Percent of mingles ordering delivery thru site 15% 15%Total
delivery revenue$3,168 $422,599Group in-restaurant revenue5 Percent
of mingles hosting prix-fixe event in restaurant 10%10%Total
in-restaurant revenue $21,120 $3,380,795Yearly ad revenue
$28,512$376,693Total yearly revenue$52,800 $4,180,087Average
revenue/organizer $4 $6Costs1 CPC$0.12 $0.04Average cost to
accquire$12 $1Gross Margin $(105,600) $3,652,087
18. Wireframe
19. Hypotheses Concluded Key Partners Key ActivitiesValue
PropCustomerCustomer Alleviates logistical Sell adscomplexity of
organizingRel.Segment Build & maintain site events for friends
Create community of Recruit partners Facilitates arranging
Organizers: Singleadvocates through acreative activities for a
womenFacebook pagegroup Organizers: Young wives Loyalty rewardswith
active social lives, no Restaurants that deliver Facilitates
organizing Referral incentiveskids Restaurant deliverygroups of
friends along Organizers: Single men sitessimilar interests or
stages Participants: Single Restaurants that hostKey in life
Channelspeople large groups People want toResources participate in
a mystery Participants: Youngmarried couples with no Techevent
organized by their Dedicated website kids Sales force: customer
friend Customer acquisition People wanting toand partner
acquisition Facilitates collection of through Facebook
&indirectly set up single PRfunds Google adsfriends Customer
service agents Reduces socialawkwardness of gettingto know new
people Costs Revenue streams structure Share of revenue from food
ordered for delivery through the site Customer Acquisition Cost
Share of revenue for group prix-fixe pre-pay menu Build/maintain
site Ad revenue Overhead Booking fee from organizers Total
Validated Hypotheses: 23 Total Invalidated Hypotheses: 2 Total
Untested: 5
20. Lessons from class Team dynamics can make or break a
start-up Lot easier to work on something you are passionate about
Important to move beyond the right side ofthe canvas Need to
separate emotion from reason Recognize time to pivot
21. Acknowledgements TEAL Bridge would like to thank Mentors
Interviewees Classmates
22. Backup
23. Metrics that matter Key MetricWhy it matters 1 Average CPC
Determines acquisition cost Conversion rate (visitors who Impacts
customer 2 sign-up)acquisition cost 3 Usage rate (sign-ups who
organize Impacts customer a mingle) acquisition cost 4 % Mingles
ordering delivery Key revenue stream 5 % Mingles organizing
prix-fixeKey revenue stream % Returning (% organizers who Impacts
lifetime value 6 return subsequent year) % Participants turned
Acquisition cost virtually 7 Organizerszero; so lowers average
acquisition cost
24. Average acquisition cost declining dueto network effects
Acquisition cost per organizer$14$12$10 $8 $6 $4 $2 $0Year 1 Year
2Year 3 Year 4 Year 5
25. Gross Margin Analysis Year 1Year 2 Year 3Year 4 Year
5Population of US 300,000,000300,000,000 300,000,000300,000,000
300,000,000Percent of US unmarried44%44% 44%44% 44%Percent of
target population who clicks 1% 2%6% 8% 10%Conversion rate (percent
who sign-up)10%10% 12%14% 15%Usage rate (percent who organize a
mingle) 10%12% 15%16% 18%New Organizers 13,20031,680142,560 236,544
356,400Participants105600 253,440 1,140,480 1,892,352
2,851,200Participants turned Organizers 10,560 25,344
114,048189,235Existing Organizers 0 6,600 19,14080,850158,697Total
organizers 13,20048,840187,044 431,442 704,332% Returning50%50%50%
50%% Participants turned Organizers 10%10%10% 10%Number of
participants per mingle 88 888Number of mingles organized per
year22 222Mingle revenuePercent of mingles paying fee 0% 0%0%0% 0%
$Charge per mingle organized through site $ 4.99 $4.99$4.99 $4.99
4.99Total mingle revenue $- $ -$ - $ - $-Delivery revenuePercent of
mingles ordering delivery thru site 15% 15% 15% 15% 15% $Average
order amount per person$5 $5 $ 5 $ 5 5Commission on order 2%3% 4%
5%5% $Total delivery revenue $3,168 $17,582$89,781 $ 258,865
422,599
26. Group in-restaurant revenuePercent of mingles hosting event
in-restaurantthrough site 10% 10% 10% 10% 10%Average order amount
per person$20 $ 20 $20 $20 $ 20Commission on order 5% 10% 15% 15%
15%Total in-restaurant revenue$21,120 $156,288 $897,811$ 2,070,922
$3,380,795Ad RevenueNumber of visits/yr1,425,600 3,030,7209,416,352
14,011,53618,834,658Ad revenue CPM$4 $4 $4$4$4Number of ads site 55
5 55Yearly ad revenue$28,512 $60,614$188,327$ 280,231 $376,693Total
yearly revenue $52,800 $234,485 $ 1,175,919 $ 2,610,018
$4,180,087Average revenue/organizer$ 4.0 $ 4.8$ 6.3 $ 6.0
$5.9CostsCPC$0.12 $0.10$0.08 $0.06 $ 0.04Average cost to accquire
$12 $5 $ 3 $ 1 $1Total Ad expense $ 158,400 $264,000 $633,600
$633,600 $528,000Gross Margin $ (105,600) $(29,515)$542,319$
1,976,418 $3,652,087
27. What would it take to be a $10M/Yrrevenue business 20%
usage rate 10 people per mingle Each organizer conducting 3
mingles/year 55% organizers return YoY 20% participants turned
organizers
28. Google AdwordsLillian-can you makethis pretty 208 clicks in
7 days Avg. CPC = $0.22