The Entrepreneur’s Journey

1. The Entrepreneur’s Journey

2. Ready, set…..

3. Building Blocks • The experience • The cost and the risk • The reward Prior to presentations show video “Shine” Start presentation with Joe’s video

4. Business Update January 12, 2012

5. Good, Bad & Ugly Our Mission: Business Management 3.0 Tuning up small business - the global economic engine Our struggle: Opportunities Versus Resource constraints

6. Th Our Team CEO Frank Coker Dir. Ops Bob Taylor EVP Tony Lael Dir. Marketing Kris Fuehr Chief Arch. Torsten Kablitz Dir. Biz Dev Scott Juetten Technical Analyst Brian LeBlanc Dev Manager Megan Flaherty Senior Acct. Mgr. John T. Designer Veronique H. Senior Engineer Shiao Wu Chang Creative Writer Heather R. Lead Tester James Shepard Senior Dev Kevin Burkett UI Designer Matt Willis UX Designer Jason Levine Developer Trevor Green

7. Advisors • Leonard Jessup, Ph.D.Dean of the Business School University of Arizona • Steve Moore COO, Contour, Inc. • Bob Pinkerton Partner, Management 3.0 LLCFounder, Symantry Marketing LLC • William Maynard, Ph.D.Former CEO and Co-Founder of the Effectiveness Institute Professor at WSU

8. Agenda • Overview • Financials • Marketing and Sales • Product Development • Operations

9. 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

10. Solid revenue growth

11. Breakeven in December Break-even!

12. Good Cash Management

13. Our Best/Worst Case Even the worst isn’t bad

14. 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

15. 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

16. Sales and Marketing

17. 19 Events Since Aug • CompTIABreakaway Conference, Washington DC, August 1-4 • InfoComm Roundtable,Vancouver, BC, Canada. August 5 • Intuit Apps Showcase, San Francisco, CA. August 11 • MSPU Webinar: Software as a Service Profitability, September 7 • InfoComm Roundtable, Chicago IL, September 20 • Coaches Breakfast Meetup, Chicago IL, September 21 • MSPU Webinar: The Top 3 Mistakes, September 29 • SMB Nation Fall Conference, Las Vegas, NV, September 30 • InfoComm Webinar: Fostering Profitable Employees, October 4 • MSPU Boot Camp, Miami, FL, October 5-7 • Intuit’s Entrepreneur Day, Mountainview, CA, October 6 • Coaches Breakfast Meetup, San Diego, CA, October 19 • InfoComm Roundtable, San Diego, CA, October 19 (Frank Coker) • Tigerpaw User Conference, Dallas, TX, October 19-21 • MSPU Webinar, October 25 @ 11am Pacific • SleeterGroup Conference, Las Vegas, NV, November 7-9 • ConnectWise IT Nation Conference, Orlando, FL (Pre-day w/Level Platforms), November 11 • High 5 Software Community Webinar, December 7 • Mentor Plus MBA (More Business Acumen), San Jose, CA (for Accountants, QuickBookPros & Financial Advisors), December 12-13, 2011

18. Is that a giant check? Bucket List Photo for the TSA Agent

19. MS Partner Conference (WPC)

20. Market Opportunity We’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

21. 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

22. Channel Partners Coaches Network Tech Vendors & Associations Platform Integrations 6M addressable 370,000 CPA members alone, each estimated to manage 30 customers 11M (not all target customers) Currently 80,000addressable community members

23. 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

24. Engaging theMarket “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 relateeducate motivating & easy Fascinate(infographics) discipline 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 Community Best practices Add-ins; Upsell; Services Flood the web with “How to Manage 3.0” (CPAs, biz associations, events, training & webinars)

25. The Big Tour Educating the market on the “Management 3.0”

26. Good at Working on • Establishing partnerships • Appeal & perception • Influencer support • Sharing expertise (Professor, CPA, 30-min process, frontline support) • Pleasing customers • Building interest from partners & influencers • Yield from channel partners • Web, demo & trial Conversions (SEO) • Drip, CRM (simplifying, automating, personalizing) • Software development competency • Scalable processes

27. Product Management

28. Product Perspective • Differentiators • Industry relationships; mass customization for partners • Industry benchmarking process • Standardized view • Built for management • Monthly management and goal tracking

29. 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

30. Product Development • Upcoming Initiatives • Complete platform migration to Azure • Build extensions to other accounting systems • MYOB • Tally • SAGE • Create ability for coaches, advisors to see performance of client portfolio • Update management process UX • Enhance benchmarks across multiple industries

31. Product Development • Challenges • Development throughput; slow delivery of new/improved features to market • Enhancing UX • Growing development team

32. Operations Management

33. 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+)

34. Sprint Productivity Jan 2011 -- Nov

35. Major Challenges and Solutions • Need more data analytics capacity • Need more development traction • Backlog of pending Corelytics enhancements • Building backlog of “technical debt”

36. 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!