In Episode #625, Nathan interviews Josh McCarter. He’s the co-founder and CEO of Booker Software, a leading business management and marketing solution serving over 10,000 health and beauty businesses. Josh has served in a variety of senior executive board roles at various technology companies including Arbitech, Spafinder and Autobytel.
Famous Five:
- Favorite Book? – Make Big Happen
- What CEO do you follow? – Steve Case, author of The Third Wave
- Favorite online tool? — OpenTable
- Do you get 8 hours of sleep?— No
- If you could let your 20-year old self, know one thing, what would it be? – “Startups are a blast, but they are not easy”
Time Stamped Show Notes:
- 01:23 – Nathan introduces Josh to the show
- 01:59 – Booker is a business management and marketing solution for health and wellness businesses
-
- 02:08 – Booker is like OpenTable
- 02:16 – Booker does everything for a business to run
- 02:31 – Booker gains revenue from their subscriptions averaging $150-250 monthly
-
- 02:48 – Booker also has merchant processing
- 02:53 – Booker also sells its add-on product, Frederick
- 03:50 – Josh started to focus on the spa industry because of the technology from his previous company
- 04:25 – “It’s important to understand what type of customers you serve best”
- 05:31 – Josh shares how he spun out of business in his previous company
-
- 06:00 – Make sure you have the right type of structure when you spin out a business
- 06:10 – Give preferences to the shareholders
- 06:18 – It took Josh 6-9 months to get all the right structures and licensing in place
- 06:30 – Josh had a series A for $150K in 2011
- 06:42 – Spafinder had put in the initial capital for Booker
- 07:17 – Booker’s current team size is around 200
- 07:26 – Booker has raised a total of a million
- 07:47 – You have to do a proper valuation for a spin out
- 08:30 – First year revenue
- 09:00 – Booker is currently at 10K locations
-
- 09:20 – There is a fee per location
- 09:34 – A company who has more locations pays more
- 10:05 – Average MRR
- 10:25 – Booker does a lot of upselling and retention
-
- 10:41 – Booker makes sure that they keep their existing customers happy
- 10:50 – “You’ve got to focus on upsell opportunities”
- 11:20 – Booker’s merchant processing
- 11:37 – Online booking for spas is more common
- 11:58 – First Data is Booker’s newest investor
- 12:54 – Average total transactions
- 13:15 – Josh is currently not in any acquisition talks and isn’t raising a round
-
- 13:23 –“We’ve got some good runway”
- 14:05 – Gross customer churn
-
- 14:30 – “50% of our churn is the people who ran out of business”
- 14:39 – Failure rate of the SMB market is quite high
- 15:00 – CAC
-
- 15:05 – Most SMBs in SaaS and marketing business spend $1500-3500 to acquire new customers
- 15:40 – Frederick came to Booker for partnership
-
- 16:10 – Frederick was able to look at how SMBs are retaining their customers
- 17:22 – Frederick was able to get high conversion and retention metrics
- 18:14 – Frederick is integrated heavily into Booker
- 18:38 – Team location
- 20:16 – The Famous Five
3 Key Points:
- It’s important to understand what type of customers you serve best.
- Make sure you have the right type of structure in place when you spin out a business.
- Startups are a blast, but they’re definitely not easy—be willing to put in the work.
Resources Mentioned:
- The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
- Organifi – The juice was Nathan’s life saver during his trip in Southeast Asia
- Klipfolio – Track your business performance across all departments for FREE
- Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
- Host Gator – The site Nathan uses to buy his domain names and hosting for the cheapest price possible
- Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
- Freshbooks – Nathan doesn’t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
- Show Notes provided by Mallard Creatives