Dave Nevogt is the co-founder of Hubstaff, has three kids, and gets more than 8 hours of sleep every night. Hubstaff is a SaaS company that helps virtual teams communicate better through online time tracking. They’ve just broken $1 million in annual revenue. Tune in to hear how Dave’s managing disagreements with his co-founder, a tight breakdown of his unit economics, and why you should be taking more risks.
Favorite Book? – The 80/20 Principle
What CEO do you follow? — Hiten Shah
Favourite online tool? —Google Docs
Do you get 8 hours of sleep?— More
If you could let your 20 year old self know one thing, what would it be?— That taking risks is okay. Even if it doesn’t work out, you’ll learn from it.
Time Stamped Show Notes:
01:03 – Nathan’s introduction
01:28 – Welcoming Dave to the show
01:40 – Hubstaff is a SaaS business that helps track time and invoice clients
01:50 – Launched in 2013 - the business is entirely bootstrapped
02:20 – Split the original investment 50/50 with his partner
02:50 – What will Dave and his partner do if they disagree on something big?
03:15 – If there’s a disagreement, one person can buy the other one out
04:22 – Currently have 2600 paying customers
04:50 – Services track time and record activity, screenshots, what software is being used
05:35 – Average customer is paying $35 per month
06:22 – MRR in March 2016 was just under $88k
07:26 – 20 employees, with a head-count cost each month of around $46k
08:15 – Adding about 270 new customers each month
08:45 – Customer churn is 3.9%
09:12 – Lifetime value is around $660
09:55 – Founders based in Indianapolis, with a global team
10:50 – Paying around $90 on per-customer acquisition
11:14 – Spread through company to contractor to company
12:30 – Blog gets around 40k unique visitors per month
13:00 – Around a 7% conversion rate to free trial at the Hubstaff homepage
14:20 – Connect with Dave via email or through the Hubstaff website
16:25 – “We just want to build the business up to a healthy annual revenue and then live our lives”
16:55 – The Famous Five
3 Key Points:
Always take risks. Even if things don’t work, you’ll learn.
Find a partner who’s on the same page as you. And even then, make sure you’re prepared for disagreements.
Have your numbers at your fingertips
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.
Show Notes provided by Mallard Creatives