This was a transitional quarter. It started off strong and then finished weak, putting us in a position to regroup, but not without challenges. July and August saw amazing customer visits and growth. It seems the summer is exactly how I had hoped with kids and families looking for something to do and have fun. September’s drop was much more than expected, but is giving us time to revisit corporate training. Having nailed entertainment Missions, this was the natural next step. With the addition of the “Replay” functionality upgrade, we are now perfectly aligned with how an entertainment customer looks to have a great experience.

Objectives

Organic Growth – Not good. We wrapped up the spectacular failure of using ValPak coupons. We also tried some paid advertising on Facebook, with no success. Need to do more testing to see what, if anything will work to build customer acquisition.
Demonstrate LTV – Fail. We had a small group of customers come back for a second mission, but on the whole, we could not convert. This is the future of the model and we need to figure this out.
Other Markets – We feel good about the addition of ‘mini-missions’ as a way to build brands and a better way for local companies to connect with consumers and offer discounts.

Progress

The overall Mission experience is now polished. From the onboarding, to the experience in our waiting area, to the Mission and replays, to discussing and having fun afterward, this is now solid. But we clearly need help to iron out the small details needed to demonstrate our ability to scale the product. This is a catch 22 and I see no chance of reaching success without capital. Which is our #1 new focus for Q4. I grade me an F and the business a B. The business could have been an A if Sept had kept up the growth rate or other metrics showed the same trends. As for me, I am failing and so to not grade me accordingly would be disingenuous.

Failures

Marketing. We still can’t figure out the magic sauce here. I always knew this was my weakness and even brought in some consulting hours to help. But there is little time to execute.
Growth. We just aren’t seeing it. I believe in the product and how this POC is proving it. But without growth, it’s nothing.
Pitching the business. This may have turned a corner, but I am struggling to see a message that resonates with investors. Somewhere out there is an adrenaline junky who likes sci-fi and video games…I hope

Successes

Content – There are 6 Missions on the platform, creating a real choice. This is working well and having several more Missions almost ready is a good sign.
Mini-Missions – This turned out much better than I thought. It’s like interactive trivia except gamified. People really love it, even for just a 5 minute experience.
Tech upgrade - We fixed a lot of little things, increased memory and added much needed functionality, including Replay, as well as “survey” challenges, new challenge methodologies and Briefing screen enhancements. This was ALL Matheus and he completed over a dozen stories in record time and under budget.

Jury is out

Adding Missions – We can add all we want, but I am still not sure that the necessary process of getting people to complete a Level 1 Mission first, is good. I don’t know any other solution, but this may not be right either.
Onboarding – Better, but still not perfect. Some people find it good, others not so much. Technology challenges are difficult for our demo.

Q4 Outlook & Objectives

Corp Train – We will work to create 2 missions as a demo of what this could be. With ‘holiday outings’ coming around, I hope to lock in a few of these and maybe even a corporate offsite half-day.
“Indoor” activities – We are speculating that the winter might work better for bringing back some of the Nuclear Family business as people look to stay indoors. We are going to build a campaign around “talking at the kitchen table” to help illustrate a better way to use micro-doses of experiential entertainment after school.
Organic growth discovery – I got some great advice the other day about gathering data to know what WILL work, once we have capital to fuel the flame. We’ve got some things in the works.
Pitch deck – This absolutely is our last hurrah. I might be able to get us to limp through Q1 until the lease ends, but this really is it.

Building this company is hard. It is hard to do it alone. But I’m not sure what single person (co-founder) would really help. We need a team. Marketing, Tech, Content, Ops. That will be the winning combo and when we turn it on, it will be amazing. Rolling into Q4 I am feeling the pressure of inevitability, but every time that customers come in and have fun, I am uplifted. Let’s see if that can translate too.

Key Metrics

Missions on Platform – 6 (last =3)

Average Booked Revenue per customer - $10.17 (Last = $14.10 Down due to more Groupon and fewer parties)

Burn - $14.2k/Q (Last = $7.6k. Increased Dev cost and Patent Filing fees)

Paid Customer Visits this quarter – 466 (Last = 176 Up based on Groupon)