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
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- 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
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- 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
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- 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
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- 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
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- 06:20 – Average number of users per customers
- 06:40 – First year revenue
- 06:58 – Self-funded before raised capital
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- 07:10 – Raised over $5 million
- 07:28 – Series A or series B
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- 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
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- 09:59 – Have a product customer fit
- 10:16 – “We tried to focus on who our customer is”
- 10:51 – Gross customer monthly churn
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- 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
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- 13:10 – Produce a lot of content on the web
- 13:40 – CAC ratio
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- 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
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- 15:10 – Marketing courses, Google Adwords
- 15:29 – Don is based in Missouri
- 15:34 – Team size is 30
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- 15:40 – Some remote employees
- 15:55 – The $5 million funding
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- 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