[A preamble] On Day 1, I made the decision to build my business in the public eye because there is a great deal to demystify about establishing a successful company. As a new founder, I have numerous questions, and my intention was to document everything I encounter so that I can assist future founders and individuals who opt to tread a similar path. While there's no assurance that Blioh will become a thriving business, I hope that the insights gained here can benefit others.

Dear Friends, 

Our mission is to help everyone find their perfect shade. Blioh exists because we want to empower individuals to discover the products that work for them and we believe augmented reality virtual try-ons are going to play a huge role in how people make spending decisions in the future. Our commitment to personalization and convenience drives us as we strive to change the way consumers try and buy cosmetics, making it easier than ever for everyone to discover, experiment, and purchase products that work with their unique qualities and preferences.

Here’s how we did towards that mission in Q2 2024 (April - June). 

Metrics

April 2024 

We're committed to continuously improving the experience with our app. Based on valuable user feedback received, in April we implemented several updates:

• Streamlined User Interface: We've redesigned the app's user interface to prioritize virtual try-on options. This makes it easier for users to discover and experiment with products right from launch. We also hid some of the products that don’t yet have virtual try-ons and added additional product tracking to see which ones are being requested and searched on the platform. This update has resulted in a significant increase in virtual try-on activity already.

• Enhanced Community Features: We're fostering a vibrant beauty community within the app! Users can now share their virtual try-on looks and engage with each other through comments, likes, and dislikes. This feature encourages interaction and inspires users to explore new looks, products and shade matches. 

• Reaching New Milestones: We're thrilled to announce that by the end of April, we surpassed 1,000 registered app users. We appreciate your continued support and look forward to welcoming even more users to the Blioh community.

• Keeping Up with Trends: We're dedicated to staying on top of the latest beauty trends. Following the recent popularity of Patrick Ta's blush filter on TikTok, we promptly added blushes to the virtual try-on options. Users can now explore his latest collection and a wider range of shades and brands in our app.

Finally, on the logistics side, we were approved for SVB bank after all our issues were resolved last month. We’re now operationally set up to receive payments, send payments and pay our taxes. 

May 2024

May was a whirlwind month for the Blioh team, filled with both exciting progress and valuable learning experiences.

Here's a look at what we accomplished:

• Improved User Experience: We implemented more accurate user retention tracking to gain deeper insights into user behavior. Additionally, we introduced notifications to keep users engaged, informing them about waitlist updates, comments on their posts, and other relevant activities. We think this will help increase our user retention over time. 

• Full-Time Focus: I'm thrilled to announce that Blioh is now my full-time commitment! This allows me to dedicate all my energy to making the app even better.

• Product Enhancements: We've added the ability to adjust shade transparency during virtual try-ons. This allows us to represent products with a sheerer application more accurately, further enhancing the user experience.

• Building a Community: User profiles are now live! This allows users to personalize their experience and connect with each other within the app, or see their collection of products.

• VC Insights: I recently attended a VC pitch event to gain valuable insights into the metrics VCs prioritize and the current landscape in the SLC venture capital space. This knowledge will be crucial as we continue to grow.

May wasn't all sunshine and roses. We faced a setback and were rejected from Y Combinator for the S24 cohort. Their feedback was valid and focused on getting user retention up and generating repeat users. They were also unsure of how this app could be the next billion dollar idea, so we definitely need to experiment with our monetization model. 

June 2024

June was a month of significant progress for Blioh, with a focus on monetization strategy, user experience improvements, and community engagement.

Here's a breakdown of our key initiatives:

• Exploring Monetization: We've been actively testing various monetization models to determine the most user-friendly and sustainable approach. While it's still early to draw definitive conclusions, these efforts are crucial for the long-term success of the app. We’ve attempted 6 different models in a short amount of time and will report back in Q3 with some results. 

• Enhanced Shopping Experience: We're excited to announce the addition of a checkout cart! Users can now seamlessly purchase the products and shades they try on virtually. For a smooth checkout process, we've integrated email notifications for orders and Stripe for secure payment processing. Stripe also graciously waived the merchant fees for the first $100,000 in revenue. 

• Community Growth: We're thrilled to have reached approximately 1,800 registered users! To further improve communication, we've implemented email notifications for orders and addressed a brief email spammer incident by adding a reCAPTCHA to the contact form. 

• Valuable User Feedback: We recently conducted a Mailchimp survey with our users, and we've already received fantastic feedback! This valuable information will guide our future development efforts. Many suggestions are still coming in. We’ve had over 40 different feature requests and improvements suggested for the app already.

• Organic Influencer Buzz: We were delighted to receive an unprompted TikTok endorsement from a makeup influencer in June! Their positive feedback, mentioning the app's game-changing potential, is incredibly motivating.

• Rewarding User Engagement: We've introduced a user points system. Users can now earn points through various in-app activities and redeem them for free makeup! This is a fun way to incentivize user engagement and reward our dedicated community.

• Administrative Resolution: We're happy to report that our EIN issue with the IRS has been resolved! They acknowledged their error and sent a notification confirming the mistake.

What’s next?

Our user retention is still too low. We’d like to get to at least 35% for a decent 30D retention, and considering that we are at ~5% retention right now, we have a long way to go.

It’s quite obvious to us right now that we do not have product market fit and that our product is not providing enough continued value to users for them to come back regularly. A slight change in direction for Q3 will mean focusing much more on user retention instead of user growth. As a result, we expect Q3 to show slower total user growth numbers as we focus less on that, and more on really nailing a quality product experience. 

How can you help? 

If you are a founder: 

If you've navigated similar challenges in building a startup, your experience can be invaluable to us. Share your insights, lessons learned, and best practices that have helped you overcome obstacles along the way. We’d be happy to do the same. We’d also be open to explore potential collaboration opportunities where our respective strengths and expertise align. Whether it's a partnership, joint venture, or shared resources, collaboration can amplify our impact and mutual success.

Please contact us for an intro or virtual coffee chat if any of that sounds interesting to you. 

If you are an investor:

We plan to fundraise soon. If our mission resonates with you and you believe in the potential of our platform, consider investing in our company. Your financial support can fuel our growth, enable product development, and expand our reach to a wider audience. Beyond financial investment, your expertise and guidance can be invaluable to us as we navigate the complexities of scaling a startup. Share your insights, provide strategic advice, and connect us to your network to help us maximize our potential. And even if you yourself are not interested in investing, perhaps you could introduce us to other potential investors, partners or experts who may be interested in our mission. 

If you are an app user: 

Your feedback is crucial in helping us improve and enhance the app experience. Share your thoughts, suggestions, and any issues you encounter while using the app. Your input guides our development efforts and ensures that we meet your needs and preferences. Help us spread awareness about our platform by sharing your positive experiences with friends, family, and on social media. Word-of-mouth recommendations are powerful in attracting new users and expanding our community.

Lastly, to all who have contributed to our journey thus far, we extend our deepest gratitude. Your belief in our vision has propelled us forward, and we are immensely grateful for the opportunity to continue this adventure with you.

#BlowupBlioh 

The Blioh Team