IQBOXY is machine powered bookkeeping for your business

IQBOXY was started by 2 software engineers with a common pain point — outsourcing the health of our company’s bookkeeping to cheap labor was slow, led to more accounting errors and exposed personal financial information to preying eyes.

Along the way we were also inspired by John D. Rockefeller and his most sacred relic, Ledger A. He kept a detailed record of his receipts and expenditures so he could always know the health of his business and life.

“No less than his business life, Rockefeller’s private life was ruled by bookkeeping entries. Since he found numbers so clean and soothing in their simplicity, he applied the business principles…to his own personal economy. When he started working in September 1855, he paid a dime for a small red book, anointed Ledger A, in which he minutely recorded his receipts and expenditures. Many of his young contemporaries kept such record books but seldom with such exacting care. For the remainder of his life, Rockefeller treated Ledger A as his most sacred relic.”

~ (Chernow, Ron (2007–12–18). Titan: The Life of John D. Rockefeller, Sr. (Kindle Locations 1321–1325). Knopf Doubleday Publishing Group. Kindle Edition.)

It is 2017 and we believe that we needed to own the pulse of our business and that machines could do a far better job than a human behind a spreadsheet in the cloud.
Enter IQBOXY — machine powered end-to-end bookkeeping. With 0 (zero) human intervention.

IQBOXY Founders - Ernest Semerda and Dmitry Birulia
Ernest Semerda & Dmitry Birulia hacking at Y Combinator (W17 — https://www.iqboxy.com)

IQBOXY Lessons

Here are a few lessons from our journey building IQBOXY during the Y Combinator (YC) W17 — Winter program.

(A) How we figured out at IQBOXY how much to charge our customers

When we launched, customers questioned our FREE model.

“what’s the catch? why is it free?”.

So we said, “ok, how about we charge you”. And so we did and peace was restored in the kingdom. We used Stripe ❤️ to process all our subscriptions — honestly don’t waste your time with anything else. Stripe is so simple to setup and get going.

Lesson: some products customers expect to pay for. Especially when it deals with their financial records. So research your market and find a spot that’s competitive. Never get into a price war since the strongest financially always wins (MBA 101).

During the YC W17 program, Dalton Caldwell (a YC Partner) encouraged us to experiment with pricing. If you are a software engineer, you know this is fast to do — ahh the power of being able to hack something yourself really fast without the need for any fancy tools. Our KPI was revenue so we used Stripe to monitor the outcome of introducing randomly rotating pricing pages. You can also achieve this in JavaScript (the crude way) or do it on the server side using Python / Django templates. Then watch your Stripe subscriptions and compare to previous historical subscription data. The goal is to find a sweet spot where the change in pricing is positive or neutral.

Here is what we settled on (IQBOXY plans): https://www.iqboxy.com/business/#pricing

(B) What metrics are important to IQBOXY and why

Our KPI has always been MRR (Monthly Recurring Revenue). Apart from being at the root of business fundamentals it is also a good indicator whether your customers love your product.

It’s easy to give away product for free. Anyone can do this in today’s digital distribution market. It is a lot harder to sell. Turning a user into a paying customer requires hard work to perfect product market fit.

  • The product has to be of quality,
  • The product has to solve a pain point and
  • The product has to add enough value that your users love it.

Apart from being at the root of business fundamentals it is also a good indicator whether your customers love your product or simply using it as a temporary swap in for the more expensive one.

(C) How do you balance trying new customer acquisition strategies and doubling down on ones which are working?

book-tractionWe followed the actionable framework and advice of Gabriel Weinberg in his famous book “Traction: A Startup Guide to Getting Customers”.

The book covers every possible marketing channel you can use to get traction, and shows you which channels will be your key to growth. You need to be organized and fastidious in measuring each channel. Then once you see 1 or 2 channels working, milk them.

Observe your Metrics

Finally, make it a ritual (a good habit) to review your business metrics daily. At first, most of it will be numbers and a bit chaotic. But over time your brain develops this beautiful connection and insights will appear.

Quick hack: To kick start this habit, create a new Chrome User called “Metrics”. Set Chrome to “Always open previous tabs” (located in Chrome > Settings). For each tab, open the sites you use to measure your business. For example:

Tab 1 — Stripe ❤️ dashboard to measure Revenue KPI,
Tab 2 — Google Adwords to measure your Campaign Strategy,
Tab 3 — Google Analytics to measure Web User Engagement or Blog performance,
Tab 4— Google Firebase to measure mobile User Engagement and catch errors,
Tab 5 — SensorTower to watch Customer Feedback and App performance,
and so on… you get the drift. Make this a habit! Otherwise you will never do this.

(D) Tips for driving mobile conversions

Today (2017) this is harder and slower than in 2012. But there are ways. And these methods require patience and persistence.

We started mobile first and did ASO (app store optimization) with the help of SensorTower. Initially it moved the needle slightly so but nothing like the early days of iTunes when the app market for keywords wasn’t so crowded.

Word of mouth ended up being the strongest driver for us. Our early users love the product and kept on spreading it to their friends and colleagues. A mobile bottom up approach is truly the most powerful form.

We ended up creating a communication strategy around this and would reach out to our users asking for reviews and comments on iTunes. Positive reviews & comments moved the needle the most on iTunes. This started to push our app position into a more visible spectrum. More downloads, more love, more ratings and more visibility — recursive circle.

~ Ernest & Dmitry
IQBOXY Cofounders
Y Combinator W17 cohort

Thanks to Alexander Strunkin (Deako YC W16), Urszula Semerda, Olia Birulia and Andrzej Bakonski for reading drafts of this.

This post was 1st published on March 20th on Medium under YC Stripe Publication: https://medium.com/yc-stripe/iqboxy-is-machine-powered-bookkeeping-for-your-business-f7c9af314866

Y Combinator’s Startup School 2016 — the recap, highlights & lessons

Another amazing Startup School 2016! Each year Y Combinator has something fresh to deliver at Startup School. This year was without exception. Apart from a stellar lineup of speakers (founders and investors) there was something new — a Founder-VC pitch role play (more on that below). I still remember my first Startup School in 2010 hearing Brian Chesky (AirBnB founder — pictured left) speak with so much energy and excitement on stage. Heck, I was so inspired that I went to the 10 man office in SF the following day to see them. Next day Office visits no longer happen but you can still get inspired by attending Startup School.

Ernest Semerda with Brian Chesky circa 2010 — Founder of Airbnb @ AirBnB headquarters in SF
Ernest Semerda with Brian Chesky circa 2010 — Founder of Airbnb @ AirBnB headquarters in SF

Each year Startup School reminds me about the fundamentals of starting and running a business;

(a) build something people need,

(b) execution is king and

(c) move fast.

Without further ado, here are my 2016 Startup School highlights.

2016 highlights

(1) Gobble — killer charts & “very crowded market”

These 2 pictures below should motivate you. This is what 6 years from an “overcrowded market” to killing it looks like. Well done Gobble for staying around and showing the disbelievers that you can do it.

“Gobble helps busy professionals easily cook dinner in just 10 minutes with 1 pan. The company designs gourmet dinner kits and completes all the sourcing and prepwork — washing, chopping, marinating, and sauce-making — so all one has to do is combine the ingredients together in one pan and be a dinner hero.”

Founders never forget. Note the “very crowded market” excuse.
Founders never forget. Note the “very crowded market” excuse.

Next time you are told this lame excuse of an “overcrowded market” or “no market” don’t be put down. Think AirBnB, Uber, Gobble et al.. and thank the investor for their time. Move on. And prove them wrong.

(2) — Rigetti and their Quantum Computer

Rigetti and Quantum Computing
Rigetti and Quantum Computing

I don’t remember last time I was this excited to hear about Quantum Computing.

This IS the next major evolution in computing. It’s that extra layer of precision that’ll open up new opportunities like seconds did for the clock to crystals for GPS and parallel for processing.

And maybe, just maybe we might be able to solve “Health” after all —from efficient drug discovery by mapping out all molecular combinations quickly to identify the ones that would most likely work to simulations. I’d love to see health go open source and have every software engineer contribute (as a way of giving back to society) to solving health related issues. Maybe this is where Mark & Priscilla Zuckerberg $3B effort to rid the world of major diseases be focused on — a contrarian approach to health efforts?.. maybe this is what we need since existing efforts are slow and buried in red tape.

Sam, congrats on convincing Rigetti to join YC. I want them to succeed!

(3) The Art of Pitching with Sam Altman and Paul Buchheit

This is the Founder-VC role play I mentioned above. I was super impressed with Sam being able to soak in the founder’s pitch and then within seconds craft a kickass (alternate) version. Brilliant way to educate everyone listening on the art of pitching.

Here are the videos — Note: Sam is role playing the founder role and Paul the VC role.

3 Takeaways:

  1. Articulate clearly what your business does, what market its addressing and why it matters,
  2. Explain the Fundamentals of what Drives your business and
  3. Don’t leave a meeting without some kind of a follow up (tip: don’t ask for a cheque).

(4) Marc Andreessen live and uncut!

marc-andreessen

Marc is always amazing to listen to. He commands so much power and energy in the room because his f**kin awesome! YouTube his name to hear many many recordings of his talks.

Marc stressed that to get yourself in front of the partners at a16z you need to pass “a bunch of tests”.

1st test — network your way into a venture firm. It tests your ability to hustle. It also paints a picture of your ability to hire. Someone that cannot hustle will find it a challenge to bring in top hires.

2nd test — formal presentation — “can you execute a formal speech” — this gets tested once you get yourself infront of the partners. Marc says this should be easier to do than infront of your customers since they are a lot tougher when it comes to selling by being a “default no”.

What I’d love to see in the future Startup School

  • Mobile focus — it’s no suprise the super computer in everyone’s pocket is changing how we interact and engage with “always on services”. I’m yet to see a startup that has truly revolutinalized a service on the mobile. For example; I’d love to see the spreadsheet evolved into mobile form where the shell looks nothing like a spreadsheet in a smaller mobile window. I don’t mean a dashboard of numbers but an actual pleasurable experience end-to-end that works as well offline as online and is supported by intelligence to automate the meh pieces of my workflow. This could really be applied to any industry. There are ample opportunities and those that experience the pain and understand the technology will be leading it.
  • And more from The Art of Pitching!

Have I missed anything?

How was your 2016 YC Startup School experience?

PS. This article also appeared at https://medium.com/the-road-to-silicon-valley/ycombinators-startup-school-2016-the-recap-highlights-lessons-7222ed84218a#.gn23gyc8z

~ Ernest