Don Breckenridge, a life-long entrepreneur and the founder of Hatchbuck. Listen as Don shares how he made Hatchbuck a successful company and the struggles he endured to bring it to life.
Famous Five:
Favorite Book? – Good to Great What CEO do you follow? – N/A Favorite online tool? — Lean Canvas Do you get 8 hours of sleep?— No If you could let your 20 year old self know one thing, what would it be? – “I wish I had mentored earlier”
Time Stamped Show Notes:
01:41 – Nathan introduces Don to the show 02:00 – What is Hatchbuck and how it generates revenue 02:05 – Sales and marketing software that helps small businesses grow their revenue 02:11 – CRM + email marketing 02:39 – Price point starts at $59 a month 02:50 – Subscription model as recurring revenue 02:55 – Discount for semi-annual and annual subscriptions 03:17 – Price increase is based on number of users and contacts 03:55 – Average revenue per customer per month 04:10 – When customers see results, they’ll start to use more of the product 04:23 – Launched in 2012 04:40 – Don had a SaaS company prior to Hatchbuck 05:10 – The business was running smoothly 05:20 – Don saw the need for SMB apps that could actually help businesses 06:04 – Number of current users 06:20 – Average number of users per customers 06:40 – First year revenue 06:58 – Self-funded before raised capital 07:10 – Raised over $5 million 07:28 – Series A or series B 07:45 – Their investors are great supporters 08:18 – The market of SaaS is an attractive business to invest in 08:30 – Under $2M revenue in 2015 09:00 – MRR computation 09:32 – Churn 09:59 – Have a product customer fit 10:16 – “We tried to focus on who our customer is” 10:51 – Gross customer monthly churn 11:15 – Around 3% churn 11:34 – In SMB, there’s an average of 3-4% churn 12:00 – Hubspot 0% revenue churn 12:25 – Companies that has negative churn that are not MSB 13:00 – Fully inbound marketing 13:10 – Produce a lot of content on the web 13:40 – CAC ratio 13:50 – “If your MRR churn rate bounces around, it starts to be really difficult” 14:25 – Healthy ratio 14:44 – Lifetime value 14:48 – Acquisition cost 15:00 – Paid media 15:10 – Marketing courses, Google Adwords 15:29 – Don is based in Missouri 15:34 – Team size is 30 15:40 – Some remote employees 15:55 – The $5 million funding 16:06 – “We’re always raising funds” 16:32 – Goal for the company 17:10 – Monthly revenue growth 17:35 – Connect with Don through Hatchbuck.com 19:05 - The Famous Five
3 Key Points:
Find a space to fill. Aim for positive results – that is what will make customers hold onto your product. It’s never too late to learn.
Resources Mentioned:
Toptal – Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn’t have to hire a co-founder due to quality of Toptal developers. Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible. Freshbooks – The site Nathan uses to manage his invoices and accounts. Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+ Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books. Hatchbuck.com – Don’s company Show Notes provided by Mallard Creatives