Exit strategy Berkeley 2016
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Transcript of Exit strategy Berkeley 2016
Exit Strategy…to today
The Master Key to Your Life
A consumer-facing SaaS tool for creating and maintaining a customizable “map” of an individual (or family’s) online accounts
10 weeks102 interviews
“Eliminate the migraine of settling someone’s affairs after death”
From the beginning…
https://youtu.be/eFNaDRk7ZUM
Exit StrategyThe Master Key to Your Life
Kelly DeutermannMBA
Hustler/Picker/Designer
David KohCS
Hacker
Rachel ParkMBA/MPH
Hustler/Picker/Designer
Ashmeet SidanaMentor
Engineering Capital
Why did we pursue this idea?
The pain was real
“Three years after my dad died, I received an email from him. It was creepy and unnecessary.”
- Kelly
The market is big
Total amount Americans spend on legal services a year
Total amount Americans spend on legal services for death a year
Total amount Americans spend on end of life affairs
ExitStrate
gy
Legal information resources
Online password/ profile managers
Pers
onal
estat
e
plann
ing so
ftwar
e
End-of-life online management platforms
Online financial
account managers
Independent banks (professional trustees),
law firms, forensic/public accountants
Not widely-served
Ad hoc approaches+ digging through loved one’s email account + receiving magazine subscriptions and past due notices months after death
+ giving up and leaving accounts open (e.g. iTunes balance)
ExitStrate
gy
Legal information resources
Online password/ profile managers
Pers
onal
estat
e
plann
ing so
ftwar
e
End-of-life online management platforms
Online financial
account managers
Independent banks (professional trustees),
law firms, forensic/public accountants
Not widely-served
Ad hoc approaches+ digging through loved one’s email account + receiving magazine subscriptions and past due notices months after death
+ giving up and leaving accounts open (e.g. iTunes balance)
ExitStrate
gy
Legal information resources
Online password/ profile managers
Pers
onal
estat
e
plann
ing so
ftwar
e
End-of-life online management platforms
Online financial
account managers
Independent banks (professional trustees),
law firms, forensic/public accountants
Not widely-served
Ad hoc approaches+ digging through loved one’s email account + receiving magazine subscriptions and past due notices months after death
+ giving up and leaving accounts open (e.g. iTunes balance)
Team dynamics and communications…a tale
Kelly Deutermann
David Koh
Rachel Park
Oski!
I’ve signed a will, funded our trust, created a contingency plan for the kids…
What’s a trust?
A trust is only for super-rich people, right?
We never found our Oski….
Our first MVP
Our first MVP
Lesson learned: MVPs are critical to get your customers - and your own team - on the same page
Getting to the Dirty Work: Customer Discovery
Our customer segments converged & divergedWeek 1: Everyone
Terminally ill
New parents
Healthy baby boomers
Military
Disabled
Type A, Young Professionals
Recent death experience
Week 2: Focus on identifiable triggers
Terminally ill: Engaged in planning
25-35 Parents, w/2+ kids: Professionals, homeownersEngaging in family planning
Healthy Adults >55:>$500k assets, have will/trust in place
Adults 30-55, designated as executors/guardians for minor(s): Planned for executorship/ guardianship
Week 3: Still diverging…
Terminally ill: Engaged in planning
25-35 Parents, w/2+ kids: Professionals, homeownersEngaging in family planning
Healthy Adults >55:>$500k assets, have will/trust in place
Adults 30-55, designated as executors/guardians for minor(s): Planned for executorship/ guardianship
Type A, Young Professional, Efficiency Oriented: Executed will/trust
The value prop canvas became really complex!
We picked and refined one customer segment
Healthy Adults >55:>$500k assets, have will/trust in place
Healthy Adults 50-65:>$500k assets, have will/trust in place
85 year old: “I don’t own a cell phone.”
68 year old: “Someone who’s working is very different from someone who has been retired for 10 years”
Insight: Not all people 55+ are the same!
Multiple interviews: “I do all the finances, so if I’m gone, my wife/husband is screwed. I’ve written down my accounts and passwords…and hope they can figure it out from there”
Healthy Adults 50-65:>$500k assets, have will/trust in place, organized, comfortable with technology, manages household finances
Which helped us learn how NOT to market to them“OMG WTF how does
it know the date I recently accessed my
account?”
“Do you guys work for the CIA?"
"This makes me feel so inadequate!”
“OMG this is scary! I would need you to
give me some Valium before looking at this
more…”
And helped us understand what’s important
“It was a nightmare for my mom when my grandmother
died”
“I don’t want to be a burden on my
family”
“I use the internet for everything”
“If I passed away, my husband would
be at a loss for where to start”
“My files are all in one place – I’m
organized.”
“My professional network is who I trust to provide
credible recommendations”
And helped us understand what’s important
“It was a nightmare for my mom when my grandmother
died”
“I don’t want to be a burden on my
family”
“I use the internet for everything”
“If I passed away, my husband would
be at a loss for where to start”
“My files are all in one place – I’m
organized.”
“My professional network is who I trust to provide
credible recommendations”
Lessons learned: 1. The customer’s experience with your
product drives the insights; the technology behind it is a distraction.
2. Narrowing your CS is the only way to dive deep
Through Customer Discovery Comes Channel Discovery!
“This would be really helpful if it came through my estate attorney – as we were actively working through the estate planning process – instead of picking it up later.” ~ Customer
“This would be an amazing intake tool! Increasing the efficiency of my operations is huge – I spend 80% of my time on 20% of my clients.”
~ Estate Attorney
Starting to get signal...
Let’s find some estate attorneys!
“My professional network is who I trust to provide
credible recommendations”
40 cold calls, emails, and
visits to estate attorneys
1email from our mentor
(Ashmeet) to a contact, getting us into the Kasner Symposium
3 Interviews with estate
attorneys
3 Interviews with estate
attorneys…in 45 min
Hustling helps…
…but using your network helps even more!
But estate attorneys weren’t our path to market• Fragmented market, with most in 2-5 person shops• Difficult to reach• Not particularly dissatisfied with current process• Not hugely interested in new technology• Ethical issues with preferring a particular vendor
And we never found that route to our customers
AARPSomewhat interested, more for healthcare directive, still reeling from association with “death panels”
Financial plannersSimilar to estate attorneys
Non-profitsLove to extend their mission, but sensitive about “selling” a commercial product
Third-party trusteeMore focused on very high asset clients
This left gaping holes in our canvas. It became really difficult to proceed coherently through the left side of the canvas without a solid go-to-market strategy
Marketing: - Largest likely cost
- Without a verified primary channel, we’d have to pursue every channel to find the best fit
- Solving the channel problem before moving to activities would have allowed for a more focused exploration of required marketing activities
We got mixed signals on revenue model
Subscription
+ Add positive quote about subscription
– “I would have to pay for this for 30 years? I don’t know if I would like that…”
One-time fee + “I would probably only set it up once, so a one-time fee is better”
+ “I’d rather it be on my desktop than on the Internet”
– Add negative quote about subscription
Free, ad-based
+ “Would rather have it free, I don’t mind ads.”
– “I definitely wouldn’t want ads for this type of thing”
– “You would have trouble finding advertisers, except maybe funeral homes. But then you actually want your customers to come back, that’s what makes them valuable to advertisers.”
Lesson learned: In the real world, don’t move on until you’ve solved a glaring problem
Where we ended up
An MVP with a simpler message for a direct to consumer strategy
That keeps focus on the human experience…
And meets their needs in a lean startup environment
Investment readiness: not desired…not required!
We’ve identified an interesting business opportunity…
✓ Large market
✓ Fragmented competition
✓ Big pain point & excitement from customers
But open questions remained…
In this class, we were held up as a result of the channel issue and the course progress.
GYST.com has a compelling story and proven channel to customers.
Kelly will work with the GYST.com leadership team over the next semester to integrate our product into their offerings.
Investment readiness: not desired…not required!
We’ve identified an interesting business opportunity…
✓ Large market
✓ Fragmented competition
✓ Big pain point & excitement from customers
But open questions remained…
In this class, we were held up as a result of the channel trouble.
GYST.com has a compelling story and proven channel to customers.
Kelly will work with the GYST.com leadership team over the next semester to integrate our product into their offerings.
Final Act: GYST.com is taking over where we are leaving off
Thank you to
Ashmeet Sidana, our mentor
Mike Olson, our advisor
Amit Kumar, our advisor
Our classmates
Teaching team
Our interviewees
Appendix
Who we interviewedTraveled across the Bay Area
+ Video chats with people in Seattle, WA
+ Cleveland, OH
+ Tampa, FL
+ Washington, DC
+ Morocco
+ South Korea
+ Ketchakan, AK
+ Irvine, CA
+ And more...
Who we interviewed
70 customers- 31 healthy 50+- 17 young professionals- 10 young parents- 3 military- 3 terminally ill- 6 other
23 partners- 10 estate attorneys- 3 financial planners- 3 marketing pros- 3 non-profits- 2 startups- 1 hospice- 1 AARP
9 startups (for left side of canvas discussions)
102 total interviews
More recent insight: Minimum sensitive info on platform; just enough required to offer value1. Choose your accounts (no account information)
2. Generate account map + instructions on how to deal with accounts
3. Share with yourself or friends/family
2 death certificatesCall 800-555-USAAAvg: 3-6 months
4 death certificatesCall 800-555-CHUKAvg: 2-5 months
1 death certificatesCall 800-555-AAPLAvg: 7 hours
Business model canvas
business model canvas with any changes marked in red, Multi-sided markets shown in different colors
Terminally Ill: Goal for this week
Healthy Adults >55:-> Website to store/ manage financial info in one place-> Easy (free) updates Provides control/ structure for communicating affairs
25-35yo parents:-> Streamlines funding trust without the hassle-> Life organizing tool
Adults 30-55, designated as executors/guardians: Guided questions / checklist repository for answers
Terminally Ill:Engaged in planning
Healthy Adults >55:>$500k assets, have will/trust in place
25-35 Parents, w/2+ kids: Professionals, homeownersEngaging in family planning
Adults 30-55, designated as executors/guardians for minor(s): Planned for executorship/ guardianship
Week 2
Business model canvas
Terminally Ill: Organize for family member taking over affairs
Healthy Adults >55:-> Website to store/ manage financial info in one place-> Easy (free) updates Provides control/ structure for communicating affairs
25-35yo parents:-> Streamlines funding trust without the hassle-> Life organizing tool
Adults 30-55, designated as executors/guardians: Guided questions / checklist repository for answers
Type A, Young Professional: Not be burdensome for family upon death
Terminally Ill:Engaged in planning
Healthy Adults >55:>$500k assets, have will/trust in place
25-35 Parents, w/2+ kids: Professionals, homeownersEngaging in family planning
Adults 30-55, designated as executors/guardians for minor(s): Planned for executorship/ guardianship
Type A, Young Professional, Efficiency Oriented: Executed will/trust
Through word of mouth
Partner with law firms as an intake tool
Week 3
Business model canvas
Terminally Ill: Organize for family member taking over affairs
Healthy Adults >55:-> Website to store/ manage financial info in one place-> Easy (free) updates Provides control/ structure for communicating affairs
Parents of young kids:-> Streamlines funding trust without the hassle-> Life organizing tool
Adults 30-55, designated as executors/guardians: Guided questions / checklist repository for answers
Type A, Young Professional: Not be burdensome for family upon death
Terminally Ill: Engaged in planning
Healthy adults >55:>$500k assets, have will/trust in place
Parents of young kids: Have a trust in place
Adults 30-55, designated as executors/guardians for minor(s)
Type A, Young Professional, Efficiency Oriented: Executed will/trust
Through word of mouth from trusted advisors
- Family/friends
- AARP- Cancer/
hospital social workers
Estate planning attorneys
More likely to DIY, not through lawyer -> more expensive to reach
More likely to have urgency and higher WTP
Not a bad segment, but may be busier, less urgency
Hard to be the person asking someone else to get organized
Week 4
Business model canvas
Terminally Ill: Organize for family member taking over affairs
Healthy Adults >55:-> Website to store/ manage financial info in one place-> Easy (free) updates Provides control/ structure for communicating affairs
Terminally Ill: Engaged in planning
Healthy adults >55:>$500k assets, have will/trust in placeThrough word of
mouth from trusted advisors
- Family/friends- AARP- Cancer/
hospital social workers
Estate planning attorneys
GET: - Professional referral- FB/Google ads
KEEP:- Service/product upgrades- Loyalty incentives
GROW: - Referrals- Upsell services
Week 5
Business model canvas
Terminally Ill: Organize for family member taking over affairs
Healthy Adults >55:-> Website to store/ manage financial info in one place-> Easy (free) updates Provides control/ structure for communicating affairsAutomatically pulling together a picture of your financial/digital assets
Terminally Ill: Engaged in planning
Healthy adults >55:>$500k assets, have will/trust in placeThrough word of
mouth from trusted advisors
- Family/friends- AARP- Cancer/
hospital social worker
- Financial planner
GET: - Professional referral- FB/Google adsKEEP:- Service upgrades- Loyalty incentivesGROW: - Referrals- Upsell services
One-time fee (for static download)
Annual fee (subscription for ongoing access)
Week 6
Terminally Ill: Engaged in planning
Healthy adults 50-65:>$500k assets, have will/trust in place
- Life organizing tool: Tool to auto-map assets for own life organization
- Not a burden on others
- Save time/money: Avoid a costly call to attorney
GET: - Professional referral- Bloggers / PR- FB/Google adsKEEP: Service upgrades, Loyalty incentivesGROW: Referrals, Upsell services
Web
Through word of mouth from trusted advisors - Family/friends- AARP- Cancer/hospital social worker- Financial planner
Financing: Friends, family, angelsPhysical: Company location, server hostingHuman: Engineering, Marketing, Advisors/mentorsIntellectual property: Trade secrets, patent
One-time fee (for static download)
Annual fee (subscription for ongoing access)
Tiered subscription (cheaper for simpler situations)
Software development to create functional site
Encryption & security to establish peace of mind
Marketing & PR to build confidence
Fixed: Engineering, hosting costs, security licensing, company overhead
Variable: Marketing/sales, miscellaneous office
Non-profits: The Conversation Project
Security firms
Online Password Service
PR firm
Bloggers, news sources
Associations: AARP
Insurance companies: Life insurance, health insurance, long-term care insurance
Terminally Ill: Engaged in planning
Healthy (partnered) adults 50-65:- Sufficiently comfortable with technology- $500k+ assets, - Have will/trust in place, - Organized- Manage household finances
Single women (50-65)- Sufficiently comfortable with technology- Organized- Manage own finances- Not wanting to be a “burden” to family members- Experienced a family member’s passing
Single men (50-65)- Sufficiently comfortable with technology- Organized, planning oriented- Manage own finances- Experienced a family member’s passing
- Life organizing tool: Tool to auto-map assets for own life organization
- Not a burden on others
- Save time/money: Avoid a costly call to attorney
GET: - Professional referral- Bloggers / PRKEEP: Service upgrades, Loyalty incentivesGROW: Referrals, Upsell services
Web
Through word of mouth from trusted advisors - Family/friends- AARP- Financial planner
Financing: Friends, family, angelsPhysical: Company location, server hostingHuman: Engineering, Marketing, Advisors/mentorsIntellectual property: Trade secrets, patent
One-time fee (for static download)Annual fee (subscription for ongoing access)Tiered subscription (cheaper for simpler situations)
Create a functioning websiteHave an accessible DatabaseEnsuring SecurityAttract customers: Target individual customersCompany FinancingAttract customers: Find large channelsAddress customer inquiriesFind a place to work and keep the lights on
Fixed: Engineering, hosting costs, security licensing, company overhead
Variable: Marketing/sales, miscellaneous office
Non-profits: The Conversation Project
Security firms
Online Password Service
PR firm
Bloggers, news sources
Associations: AARP
Insurance companies: Life insurance, health insurance, long-term care insurance
Terminally Ill: Upon initial diagnosisHealthy (partnered) adults 50-65:- Sufficiently comfortable with technology- $500k+ assets, - Have will/trust in place, - Organized- Manage household financesSingle women (50-65)- Sufficiently comfortable with technology- Organized- Manage own finances- Not wanting to be a “burden” to family members- Experienced a family member’s passing
Single men (50-65)- Sufficiently comfortable with technology- Organized, planning oriented- Manage own finances- Experienced a family member’s passing
- Life organizing tool: Tool to auto-map assets for own life organization
- Not a burden on others
- Save time/money: Avoid a costly call to attorney
GET: - Professional referral- Bloggers / PR- Oncology social workersKEEP: Service upgrades, Loyalty incentivesGROW: Referrals, Upsell services
Web
Through word of mouth from trusted advisors - Family/friends- AARP- Financial planner
Financing: Friends, family, angelsPhysical: Company location, server hostingHuman: Engineering, Marketing, Advisors/mentorsIntellectual property: Trade secrets, patent
One-time fee (for static download)Annual fee (subscription for ongoing access)Tiered subscription (cheaper for simpler situations)
Create a functioning websiteHave an accessible DatabaseEnsuring SecurityAttract customers: Target individual customersCompany FinancingAttract customers: Find large channelsAddress customer inquiriesFind a place to work and keep the lights on
Fixed: Engineering, hosting costs, security licensing, company overhead, Marketing/sales, miscellaneous office
Variable: Commissions
Non-profits: The Conversation Project
Security firms (not in year 1)
Online Password Service (not in year 1)
PR firm (not in year 1)
Bloggers, news sources
Associations: AARP
Insurance companies: Life insurance, health insurance, long-term care insurance