The Entrepreneur’s Journey

Ready, set…..

Building Blocks

• The experience

• The cost and the risk

• The reward

Prior to presentations show video “Shine”Start presentation with Joe’s video

Business Update

January 12, 2012

Good, Bad & Ugly

Our Mission:

Business Management 3.0Tuning up small business - the global economic engine

Our struggle:

Opportunities

Versus

Resource constraints

Th Our TeamCEO

Frank Coker

EVPTony Lael

Dir. MarketingKris Fuehr

Dir. Biz DevScott Juetten

Chief Arch.Torsten Kablitz

Dir. OpsBob Taylor

Senior DevKevin Burkett

Lead TesterJames Shepard

Dev ManagerMegan Flaherty

Senior EngineerShiao Wu Chang

Creative WriterHeather R.

DesignerVeronique H.

Senior Acct. Mgr.

John T.

Technical Analyst

Brian LeBlanc

UI DesignerMatt Willis

UX DesignerJason Levine

DeveloperTrevor Green

Advisors

• Leonard Jessup, Ph.D.Dean of the Business SchoolUniversity of Arizona

• Steve Moore COO, Contour, Inc.

• Bob Pinkerton Partner, Management 3.0 LLC

Founder, Symantry Marketing LLC

• William Maynard, Ph.D.Former CEO and Co-Founder of the Effectiveness InstituteProfessor at WSU

Agenda

• Overview

• Financials

• Marketing and Sales

• Product Development

• Operations

History

• CoreConnex started Jan 2005• Major phases:

– Consulting in IT industry– PSA software product for IT industry– Sold off PSA business (2009)– Financial dashboard product for IT industry– Sales through strategic channel partners– Game changer: Intuit award (2011)– Broadened industry focus

Solid revenue growth

Breakeven in December

Break-even!

Good Cash Management

Our Best/Worst Case

Even the worst isn’t bad

Company Status

• Breakeven as of December 2012• Pumped – we are the Intuit champ!

- scrambling to get ahead of the curve• In the Microsoft spotlight – re: Azure!• Planning 3 city road tour – sponsored!• Moving from 3 vertical markets to 40• Focus on reaching $5m in 2014• Seeking $1m to fund growth

Major Metrics12 month progress

• Registered companies up 89%– From 353 to 666

• Increased strategic partnerships 55%– From 9 to 14 plus added coaches network

• Went from 1 to 18 vertical markets

• In 26 countries

• Company team doubled from 7 to 15

Sales and Marketing

19 Events Since Aug

1. CompTIA Breakaway Conference, Washington DC, August 1-4

2. InfoComm Roundtable,Vancouver, BC, Canada. August 5

3. Intuit Apps Showcase, San Francisco, CA. August 11

4. MSPU Webinar: Software as a Service Profitability, September 7

5. InfoComm Roundtable, Chicago IL, September 20

6. Coaches Breakfast Meetup, Chicago IL, September 21

7. MSPU Webinar: The Top 3 Mistakes, September 29

8. SMB Nation Fall Conference, Las Vegas, NV, September 30

9. InfoComm Webinar: Fostering Profitable Employees, October 4

10.MSPU Boot Camp, Miami, FL, October 5-7

11. Intuit’s Entrepreneur Day, Mountainview, CA, October 6

12.Coaches Breakfast Meetup, San Diego, CA, October 19

13. InfoComm Roundtable, San Diego, CA, October 19 (Frank Coker)

14.Tigerpaw User Conference, Dallas, TX, October 19-21

15.MSPU Webinar, October 25 @ 11am Pacific

16.Sleeter Group Conference, Las Vegas, NV, November 7-9

17.ConnectWise IT Nation Conference, Orlando, FL (Pre-day w/Level Platforms), November 11

18.High 5 Software Community Webinar, December 7

19.Mentor Plus MBA (More Business Acumen), San Jose, CA (for Accountants, QuickBook Pros & Financial Advisors), December 12-13, 2011

Is that a giant check?

Bucket List Photo for the TSA Agent

MS Partner Conference (WPC)

Market OpportunityWe’ve scratched the surface. The market is hungry and our customers are satisfied. It’s time to expand!

•6 million targeted businesses in the US (employ at least 1 employee); 30 million global

– Target is 5-50 employee small businesses

•Current partnerships– Microsoft - 1.2 million channel partners

– Intuit - 4.8m customers; 65,000 QuickBooks Pro Advisors

– Existing technology partners & associations; 80,000 addressable members

•The market is ours to take: We need to capture verticals before competitors.

100,000 customers gets us to $100m

Goals & initiatives

$5M or 237/mo new subscriptions in 3 years•700 new leads per month (based on current conversion rates)•Scaling through channel sales•Drip conversion of trials•Channel account management•Self-serve sales

Key Challenges:•Velocity of channel growth•Predictable trial conversion•Capacity to manage our channel & customers

Channel PartnersCoaches NetworkPlatform Integrations

Currently 80,000addressable community

members

6M addressable

370,000 CPA members alone, each estimated to manage 30 customers 11M (not all target customers)

Tech Vendors & Associations

Coach Strategy

• Educate CPAs/Advisors on “Consultative client management” and Annuity Revenue Opportunities The 30 | 300 |1 Plan

• MentorPlus, TruMethods, several community leaders

• Certification & continuing education credits

RELATEEDUCAT

E

MOTIVATING & EASY

DISCIPLINE

Flood the web with “How to Manage 3.0” (CPAs, biz associations, events, training & webinars)

Stream insight w/ “Findings” Influencers, CPAs, Social media

Testimony, invite to Trial1:1 coach consults, 1hr self-setup, drip to remove barriers, easy to start

CommunityBest practicesAdd-ins; Upsell; Services

FASCINATE

(INFOGRAPHICS)

Engaging the Market

“Teach you about the New Normal…”

“What’s happening, how to improve”

“Why it’s right (easy) for you”

“Keep/grow the 30-minute habit

The Big TourEducating the market on the “Management 3.0”

Good at Working on 1. Establishing partnerships

2. Appeal & perception

3. Influencer support

4. Sharing expertise (Professor, CPA, 30-min process, frontline support)

5. Pleasing customers

1. Building interest from partners & influencers

2. Yield from channel partners

3. Web, demo & trial Conversions (SEO)

4. Drip, CRM (simplifying, automating, personalizing)

5. Software development competency

6. Scalable processes

Product Management

Product Perspective

• Differentiators– Industry relationships; mass customization

for partners– Industry benchmarking process– Standardized view– Built for management – Monthly management and goal tracking

Product Development

Provide an engaging user experience to transform the way business owners manage their companies and see their performance

•Goals– Connect to other data sources and platforms

– Enhance coach/advisor partnerships

– Increase upsell opportunities (PRO $99)

– Support for international growth

Product Development

• Upcoming Initiatives1. Complete platform migration to Azure

2. Build extensions to other accounting systems– MYOB– Tally– SAGE

3. Create ability for coaches, advisors to see performance of client portfolio

4. Update management process UX

5. Enhance benchmarks across multiple industries

Product Development

• Challenges– Development throughput; slow delivery of

new/improved features to market– Enhancing UX– Growing development team

Operations Management

Operations Management Goals• Highly responsive customer service (B+)

• Timely and comprehensive ops reporting (A-)

• Reliable systems infrastructure (B)

• Software development on schedule and on budget (C-)

• Strategic partner projects (A+)

Sprint Productivity

Jan 2011 -- Nov

Major Challenges and Solutions• Need more data analytics capacity

• Need more development traction

• Backlog of pending Corelytics enhancements

• Building backlog of “technical debt”

What’s Ahead?

• Continuous evolution

• Impact on the market

• Blood/sweat/tears (or equivalent )

• Investment – internal and external

• Liquidity event (cash for stock) in 2–5 yrs

Must be present to win!