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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.\\xa0

Famous Five:

• Favorite Book? \\u2013 Good to Great
• What CEO do you follow? \\u2013 N/A

• Favorite online tool? \\u2014 Lean Canvas
• Do you get 8 hours of sleep?\\u2014 No
• If you could let your 20 year old self know one thing, what would it be? \\u2013 \\u201cI wish I had mentored earlier\\u201d

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Time Stamped Show Notes:

• 01:41 \\u2013 Nathan introduces Don\\xa0 to the show
• 02:00 \\u2013 What is Hatchbuck and how it generates revenue
• • 02:05 \\u2013 Sales and marketing software that\\xa0 helps small businesses grow their revenue
  • 02:11 \\u2013 CRM + email marketing
• 02:39 \\u2013 Price point starts at $59 a month
• • 02:50 \\u2013 Subscription model as recurring revenue
  • 02:55 \\u2013 Discount for semi-annual and annual subscriptions
• 03:17 \\u2013 Price increase is based on number of users and contacts
• 03:55 \\u2013 Average revenue per customer per month
• • 04:10 \\u2013 When customers see results, they\\u2019ll start to use more of the product
• 04:23 \\u2013 Launched in 2012
• 04:40 \\u2013 Don had a SaaS company prior to Hatchbuck
• • 05:10 \\u2013 The business was running smoothly
  • 05:20 \\u2013 Don saw the need for SMB apps that could actually help businesses
• 06:04 \\u2013 Number of current users
• • 06:20 \\u2013 Average number of users per customers
• 06:40 \\u2013 First year revenue
• 06:58 \\u2013 Self-funded before raised capital
• • 07:10 \\u2013 Raised over $5 million
• 07:28 \\u2013 Series A or series B
• • 07:45 \\u2013 Their investors are great supporters
• 08:18 \\u2013 The market of SaaS is an attractive business to invest in
• 08:30 \\u2013 Under $2M revenue in 2015
• 09:00 \\u2013 MRR computation
• 09:32 \\u2013 Churn
• • 09:59 \\u2013 Have a product customer fit
  • 10:16 \\u2013 \\u201cWe tried to focus on who our customer is\\u201d
• 10:51 \\u2013 Gross customer monthly churn
• • 11:15 \\u2013 Around 3% churn
  • 11:34 \\u2013 In SMB, there\\u2019s an average of 3-4% churn
  • 12:00 \\u2013 Hubspot 0% revenue churn
  • 12:25 \\u2013 Companies that has negative churn that are not MSB
• 13:00 \\u2013 Fully inbound marketing
• • 13:10 \\u2013 Produce a lot of content on the web
• 13:40 \\u2013 CAC ratio
• • 13:50 \\u2013 \\u201cIf your MRR churn rate bounces around, it starts to be really difficult\\u201d
  • 14:25 \\u2013 Healthy ratio
• 14:44 \\u2013 Lifetime value
• 14:48 \\u2013 Acquisition cost
• 15:00 \\u2013 Paid media
• • 15:10 \\u2013 Marketing courses, Google Adwords
• 15:29 \\u2013 Don is based in Missouri
• 15:34 \\u2013 Team size is 30
• • 15:40 \\u2013 Some remote employees
• 15:55 \\u2013 The $5 million funding
• • 16:06 \\u2013 \\u201cWe\\u2019re always raising funds\\u201d
• 16:32 \\u2013 Goal for the company
• 17:10 \\u2013 Monthly revenue growth
• 17:35 \\u2013 Connect with Don through Hatchbuck.com
• 19:05 - The Famous Five

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3 Key Points:

• Find a space to fill.
• Aim for positive results \\u2013 that is what will make customers hold onto your product.
• It\\u2019s never too late to learn.

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Resources Mentioned:

• Toptal\\xa0\\u2013 Nathan found his development team using Toptal\\xa0 for his new business Send Later. He was able to keep 100% equity and didn\\u2019t have to hire a co-founder due to quality of Toptal\\xa0 developers.
• Host Gator\\xa0\\u2013 The site Nathan uses to buy his domain names and hosting for cheapest price possible.
• Freshbooks\\xa0\\u2013 The site Nathan uses to manage his invoices and accounts.
• Leadpages\\xa0 \\u2013 The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
• Audible\\xa0\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
• Hatchbuck.com \\u2013 Don\\u2019s company
• Show Notes provided by Mallard Creatives