Freshbooks Workshop
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The document provides an overview of how to build a successful web app business from start to finish, covering topics such as building a minimum viable product, forming a founding team, marketing strategies, product management, metrics, funding, and building a strong company culture. It emphasizes the importance of launching with a focused product, choosing the right co-founders, understanding customer needs through support and testing, making data-driven decisions, raising funding at the right times, and aligning all aspects of the business around shared company values.
![Legend Story = [s] Costs = ($$$) Book = {b} Ask questions as you see fit.](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-20-320.jpg)
![Building: Launch ready product You get paid for two things Build the least…you are in a vacuum Don’t build billing Set a deadline for launch What is “ready?” Exactly. Embrace constraints and focus [s]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-22-320.jpg)
![Building: The founding team Two kinds of entrepreneurs Equity = ownership = bigger pie Human qualities: PASSION Trust, honesty, loyalty, openness Not in it for the money [s] Where to find [s] Entrepreneur, manager, technician {b} Roles: design, dev, ops, S$M 3 am test](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-23-320.jpg)
![Building: The Company Lawyers ($$$) Docs and dark clouds Hosting ($) Office [s] Advisors [s] Board Business plan](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-24-320.jpg)
![Marketing: Categories “ Don’t underestimate the power of categories” - Mike McDerment Are you creating a new category? Can you? Read “Positioning” [b]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-26-320.jpg)
![Marketing: Choosing your name Easy to remember Easy to spell without explanation Describes the category Describes the benefit Describes the d ifference BONUS: Fun. Harsh. Consonants. [s]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-27-320.jpg)
![Marketing: Domain names Get the .com…it’s just another constraint [s]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-30-320.jpg)
![Product management: Support Everyone does support [s] Post your phone number [s] Use a forum Hit Twitter Be everywhere It’s all fuel for the Big List…](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-36-320.jpg)
![Product mgnt: Usability tests Give them Watch them No talking Have team watch [s]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-38-320.jpg)
![Product mgnt: Telephone interviews ***These are a must *** Prepare a survey Benefits open ended Before and after Listen = energizing [s]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-39-320.jpg)
![Product mgnt: Decisions = dope Decisions are part art, part science You are editor/curator Can’t please all people all the time If you do support, you’ll know Wait, wait, wait Remove the pain, stay true to vision [s]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-40-320.jpg)
![Funding: When to raise When you don’t have to [s] Know your users better than anyone When you have a formula for the $’s When you’ve got traction When you know your market size](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-50-320.jpg)
![Funding: What to look for in investors Shared values [s] Conviction [s] Trust, honesty Operational experience Domain expertise 3 am test … it’s a marriage](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-52-320.jpg)
![Funding: Dilution thoughts Small piece of a big pie Smart investors want you incented You take one round, you’ll take three Barry Diller: “Hang on” Q: can you increase share price by more than dilution? [s]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-53-320.jpg)
![Building Culture: Values Values don’t change; founders [b] Uncover your values [s] You define the words Haze them [s] Reward on values [s]](https://image.slidesharecdn.com/freshbooksworkshopvancouver2011-111210215922-phpapp01/85/Freshbooks-Workshop-58-320.jpg)
Freshbooks Workshop
- 1. How to web app business from A-Z @MikeMcDerment – Co-Founder and CEO December, 2011 –#freshbooksWS
- 2. Mike McDerment Co-founder, CEO
- 3. What you need to know to get a successful web app business off the ground.
- 4. What we’ll cover! Building Marketing Product Managing Metrics Financing Culture Questions
- 5. Who is this punk, and where does he get off talking to us?!!
- 6. I followed my nose… Dropped out Events Design Conversion Fateful day To the basement ~80 and counting No institutional capital
- 7. FreshBooks is… …leader in online billing and bookkeeping
- 9. Create & Send Estimates
- 10. Track Time
- 11. Track Expenses
- 12. Invoicing
- 13. Estimates Time tracking Expenses Invoicing ____________________________They way professionals invoice their clients and each other
- 14. Now for Web Apps! Recurring billing managed inside your app Accept credit cards inside your own app Real-Time payment notifications ( WEBHOOKS! ) http://developers.freshbooks.com/
- 15. Borrrrrring
- 16. You say: “Why should I care?!” I say: “Because…”
- 17. Over 3,500,000 Users Since May 2004 Month Users
- 18. Thank you for having me Thank yourselves for being here Quick poll
- 19. Ready?!
- 20. Legend Story = [s] Costs = ($$$) Book = {b} Ask questions as you see fit.
- 21. Part I: Building Launch ready product Founding Team Company ($$$)
- 22. Building: Launch ready product You get paid for two things Build the least…you are in a vacuum Don’t build billing Set a deadline for launch What is “ready?” Exactly. Embrace constraints and focus [s]
- 23. Building: The founding team Two kinds of entrepreneurs Equity = ownership = bigger pie Human qualities: PASSION Trust, honesty, loyalty, openness Not in it for the money [s] Where to find [s] Entrepreneur, manager, technician {b} Roles: design, dev, ops, S$M 3 am test
- 24. Building: The Company Lawyers ($$$) Docs and dark clouds Hosting ($) Office [s] Advisors [s] Board Business plan
- 25. Part II: Marketing Categories Choosing a name Domain names Knowing your story Building your website Spending wisely ($$)
- 26. Marketing: Categories “ Don’t underestimate the power of categories” - Mike McDerment Are you creating a new category? Can you? Read “Positioning” [b]
- 27. Marketing: Choosing your name Easy to remember Easy to spell without explanation Describes the category Describes the benefit Describes the d ifference BONUS: Fun. Harsh. Consonants. [s]
- 28. Over 3,5 00,000 Users Since May 2004 Month Users
- 29. Marketing: Choosing your name (con’t) Google:“How to name your company” It’s a process. It takes discipline. It’s about constraints. It will take 20+ hours. No shit.
- 30. Marketing: Domain names Get the .com…it’s just another constraint [s]
- 31. Marketing: Knowing your story There is an art to telling stories It gives your history It will be remembered Different versions for different people Elevator pitch Stories evolve My story…
- 32. Marketing: Building a website Three pages Home page must explain: What it is? Who it’s for? Why it matters? Let’s look at a site…
- 33. Marketing: Building a website (con’t) Go to FreshBooks website
- 34. Marketing: Spending wisely Out spend or out teach Banners in your community ($) Google PPC (outsource if you can) ($) Conferences, community ($) Community emails ($) PR is the best so… Blog your adventure…without delay
- 35. Part II: Product management Do support Usability tests Telephone interviews Decisions = Dope
- 36. Product management: Support Everyone does support [s] Post your phone number [s] Use a forum Hit Twitter Be everywhere It’s all fuel for the Big List…
- 37. Product mgnt: Support (con’t) SCREEN SHOT OF THE BIG LIST
- 38. Product mgnt: Usability tests Give them Watch them No talking Have team watch [s]
- 39. Product mgnt: Telephone interviews ***These are a must *** Prepare a survey Benefits open ended Before and after Listen = energizing [s]
- 40. Product mgnt: Decisions = dope Decisions are part art, part science You are editor/curator Can’t please all people all the time If you do support, you’ll know Wait, wait, wait Remove the pain, stay true to vision [s]
- 41. Part IV: Metrics Marketing Revenue Expenses … oh yeah, tracking!
- 42. Metrics: Marketing Cost per acquisition (CPA) $ spent/# new customers = $ Conversion rate (trial, paying) # trials/# visitors = % # paying/# trials = %
- 43. Metrics: Revenue Average revenue per user (ARPU) monthly revenue/# paying customers Churn # monthly cancels/ total customer base = %
- 44. Metrics: Revenue (con’t) Monthly recurring revenue (MRR) ARPU * # customers = MRR Lifetime value ARPU * (100/% churn) = LTV
- 45. Metrics: Expense You don’t have any, so no big deal Guidelines: Hosting : ~10% revenue Acquisition: CPA < 10 * ARPU
- 46. Metrics: Expense (con’t) Burn rate monthly exp – monthly rev = Burn Run rate monthly revenue * 12 = Run rate
- 47. Metrics: Other % of email that is glowing % of people who refer you Job satisfaction Days you did not want to work ?
- 48. Metrics: Extra - Tracking Track from the start Event logging Google is not enough Marketing/cookies Ref site, land URL, KWP
- 49. Part IV: Funding When to raise Where $’s come from What to look for in investors Dilution thoughts
- 50. Funding: When to raise When you don’t have to [s] Know your users better than anyone When you have a formula for the $’s When you’ve got traction When you know your market size
- 51. Funding: Where $’s come from? Consulting business & savings Love money Angels and advisors (27-1) Your mortgage … the bank? VCs/PE Capital markets (going public)
- 52. Funding: What to look for in investors Shared values [s] Conviction [s] Trust, honesty Operational experience Domain expertise 3 am test … it’s a marriage
- 53. Funding: Dilution thoughts Small piece of a big pie Smart investors want you incented You take one round, you’ll take three Barry Diller: “Hang on” Q: can you increase share price by more than dilution? [s]
- 54. Quiz Guess how many customers we had at the end of 2004? (we launched May 2004)
- 55. What you need to know to get a successful web app business off the ground.
- 57. Building Culture: Hiring Hire for two things Check for values Open ended questions Key words Trust your gut Why FB?
- 58. Building Culture: Values Values don’t change; founders [b] Uncover your values [s] You define the words Haze them [s] Reward on values [s]
- 59. Building Culture: CEO does? Set the vision Foster trust; live the values Get the resources Keep sharing the vision Step forward; give credit Recruit the best Align. Align. Align.