Surviving in the Competitive Industry: Beekeeper's Growth Strategy Unveiled

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

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

SC Executive Summary What does Beekeeper need to do in order to survive? Question Expand customer base, decrease operational inefficiencies, increase profitability Goal Unrestricted Expansion Get Acquired Focused Growth Alternatives Customer Retention Operational Efficiencies Customer Expansion Profitability KPI s

SC Agenda Introduction Analysis Alternatives Implementation Risk and Mitigation Questions and Answers

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

SC Industry Analysis Industry Drivers Competing for market share Low barriers to entry Educational focus for marketing Early adopters are customers Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Competitive Analysis Name Geographic Focus US / Europe Industry Focus Staffbase Manufacturing / Hospitality Manufacturing Retail Red e App Crew US US Key Consideration: These players are targeting similar high-turnover cyclical industries staying away from data- heavy areas. Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

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

SC Value Proposition Gains -Timely communication -Remote access -Ease of Use Job Communicate with deskless employees Pains -Absenteeism -Low Productivity Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Value Proposition Gain Creators -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 Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Difficulties of a Disruptive Culture How can we build sustainable success? Must be disruptive and focused Higher employee turnover rates Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

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

SC Cash Flow Analysis Revenue Key Assumptions: 10.8 Million 1. Revenue Remains 65% of Costs Today 2. Overhead is15% of Salaries 3. 30% of our Serie and Seed Cash Remain Costs 16.6 Million Loss (5.8) Million We Have 9 Months of Cash Left Cash on Hand 4.3 Million Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Employee Analysis Employ ee Growth Rate Year End Total Engineers Ratio 2015 15 2016 38 2017 87 2018 118 We are growing at a fast rate and keep our employee mix relatively constant 2 13% 5 13% 14 16% 15 13% 153% 129% 36% CAGR 67% Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

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

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

SC Unrestricted Expansion Growth is the way forward Pros Continue to focus on any interested industry Quick Fix Investor Payoff Act on compliance capabilities due to change in Europe s data privacy laws Cons Emotional Attachment Give up control Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Get Acquired Sell Beekeeper to a competitor. Pros Quick Fix Investor Payoff Estimated selling price $25mm Cons Possible buyers include: Facebook Microsoft Emotional Attachment Give up control Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Focused Growth Focus on our 3 key industries Hospitality Manufacturing Retail Pros Relatively easy transition Cost effective Increase revenues Customer Focus Cons Fix internal issues with employees and inefficiencies Consider new add on products and in app improvements Possibility of being too focused Must find a way to address customers outside of 3 main verticals Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

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

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

SC Why We Chose This Option Managing message to gain gravitas and reach desired clients Growing in focused, target markets Working within our financial constraints Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Focused growth to Making Honey

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

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

SC Internal Messaging 15 3 industries industries We must manage the message! Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

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

SC 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. Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC 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. Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Human Resources Internal Structure Engineering Team Shift in Sales and Marketing Focus Manage Message 15 Industries 3 Industries Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Human Resources Managing Current 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 Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

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

SC Client Retention Shifting away from some industry verticals Need to increase renewals Superior Customer Service Highlight Future product Development Open communication Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

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

SC Honeycomb Physical Device Akin to Amazon Fire HD Physically fixed to Janitorial Carts, Housekeeping, Valets, Sales Floors Small Profit Sold near cost to encourage adoption Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Honeycomb Gains and painkillers Stickiness Small investment Simplified training and implementation Data Security Company data exists on owned devices Can be tracked Honeycomb New Revenue Data Analytics Task managing Future Development Inventory management

SC Sales From Honeycomb Price: $130 Cost $100 $4.5 Million in additional profit Assume 15% adoption 150,000 devices sold

SC Marketing: Acquiring Customer Under one brand and one roof Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Marketing: Acquiring Customer Under one brand and one roof Conferences/ Tradeshows Trade Specific Publications Testimonials Industry- Specific Website Advertorials In-person interaction with decision makers Personal References Interviews Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Marketing: Acquiring Customer Under one brand and one roof Conferences/ Tradeshows Trade Specific Publications Testimonials Industry- Specific Website Advertorials In-person interaction with decision makers Personal References Interviews Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Marketing: Acquiring Customer Under one brand and one roof Conferences/ Tradeshows Trade Specific Publications Testimonials Industry- Specific Website Advertorials In-person interaction with decision makers Personal References Interviews Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Marketing: Use Customer Back of house Cafeteria Locker Room Break Room Posters Flyers Word of Mouth Methods Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Marketing: The Honeycomb Market to acquiring customer Continue advertorials, tradeshows, and publications Bonus for employees who sell Honeycomb Promotion for existing customers to upgrade Risk and Mitigation Questions and Answers Intro Analysis Alternatives Implementation

SC Revenue Projections Profitability Projections $25,000,000.00 $1,000,000.00 $- With These implementations we can see: $20,000,000.00 $(1,000,000.00) Profitability by 2023 $(2,000,000.00) $15,000,000.00 $(3,000,000.00) $10,000,000.00 $(4,000,000.00) $(5,000,000.00) $5,000,000.00 $(6,000,000.00) $- $(7,000,000.00) 2019 2020 2021 2022 2023 Revenue Costs Profit

SC Budget 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

SC Timeline 2019 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 2021 Internal Messaging Follow up blogs/newsletters Outsource Design Presales of honeycombs Prodution of Honeycomb Client Messaging Marketing

SC Risks & Mitigation Impact Insolvency Insolvency Raise more capital Existing Customers Unhappy Employee Backlash Try to mitigate with open communication Streamline by attrition & replace if needed Existing Customers in non-focus Verticals Unhappy Employee Backlash Open communication & continued support Probability

SC Key Performance Indicators - Metrics Client Retention Operational Efficiencies Client Expansion Profitability Streamline internal processes with engineers Retain 85% of customers up for renewal Increase client base by 15% by 2020 Profitable by 2020

SC Executive Summary Revisited What does Beekeeper need to do in order to survive? Question Expand customer base, decrease operational inefficiencies, increase profitability Goal Unrestricted Expansion Get Acquired Focused Growth Alternatives Customer Retention Operational Efficiencies Customer Expansion Profitability KPI s

Questions? Thank you!