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Kyle Racki, co-founder and CEO of Proposify. He\u2019s passionate about design, SaaS, and marketing. He loves jamming out to 90s covers/tunes at open mic nights, and also has the unique ability to work in perfectly, cromulent Simpsons\u2019 references to any conversation.

Famous Five:

• Favorite Book? \u2013 Lean Analytics
• What CEO do you follow? \u2013\xa0 Alex Turnbull

• Favorite online tool? \u2014 Heap Analytics
• Do you get 8 hours of sleep?\u2014 Sometimes
• If you could let your 20-year old self, know one thing, what would it be? \u2013 \u201cThat it\u2019s all going to be okay and\u2026I\u2019m going to give myself a hug\u201d

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Time Stamped Show Notes:

• 01:40 \u2013 Nathan introduces Kyle to the show
• 02:24 \u2013 Proposify is a SaaS business and it helps people streamline their sales and close more deals
• 02:40 \u2013 Average customer pay per month is $40-$50
• 02:53 \u2013 Current number of customers
• 03:10 \u2013 Average MRR
• 03:25 \u2013 Proposify was launched in 2013
• • 03:35 \u2013 Proposify had less than $1000 MRR for 17 months
  • 04:03 \u2013 Kyle and his co-founder had an agency
  • 04:22 \u2013 Kyle raised $250K in seed capital from a local investor
  • 04:39 \u2013 Kyle and his team\u2019s pay is around $60K a month during that time
• 05:40 \u2013 Team size is 15 and are located in Halifax, Canada
• • 06:20 \u2013 Kyle shares how the startup market is in Halifax
  • 06:50 \u2013 Known startup companies from Halifax
• 07:24 \u2013 Kyle does weekly phone calls with customers to check in on them
• 07:50 \u2013 Kyle shares how one of their customers beat VaynerMedia in a proposal
• 09:15 \u2013 How Proposify creates proposals in a flash
• 09:40 \u2013 Proposify\u2019s competition
• 10:04 \u2013 Proposify is more focused on the digital agency space
• 11:25 \u2013 Average number of new customers per month
• 11:50 \u2013 Proposify has a free and no-credit card sign-up
• 12:00 \u2013 Proposify does inbound sales, but organic search is the biggest source of traffic
• 12:43 \u2013 Best podcast that drives Proposify\u2019s traffic
• 13:05 \u2013 Proposify has a general marketing budget
• • 13:28 - $10K for paid marketing
• 13:45 \u2013 CAC is quite low
• 14:18 \u2013 LTV
• 14:40 \u2013 Gross monthly customer churn
• 15:00 \u2013 Proposify currently has 2 sales people
• 15:35 \u2013 Other system Kyle uses for business intelligence is Heap Analytics
• 16:16 \u2013 Total 2015 revenue is $551K
• 17:11 \u2013 Proposify is profitable and continually growing
• 18:30 \u2013 \u201cWe\u2019ll always entertain acquisition offers if it makes sense\u201d
• 19:00 \u2013 The process Kyle will go through if there\u2019s a possible acquisition
• 19:47 \u2013 Number of Proposify\u2019s developers
• 20:00 \u2013 Connect with Kyle through their website and help Kyle look for Proposify.com\u2019s owner and he\u2019ll pay you
• 22:00 \u2013 The Famous Five

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3 Key Points:

• There\u2019s a temptation to spend VC money; be decisive when you want to raise capital and stick to your goals.
• Organic traffic is good, but getting paid marketing can still drive more traffic and customers.
• There are a lot of things to consider in an acquisition \u2013 it should match your personal goals, be a cultural fit, and the numbers need to make sense.

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Resources Mentioned:

• Acuity Scheduling \u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Drip \u2013 Nathan uses Drip\u2019s email automation platform and visual campaign builder to build his sales funnel
• Toptal\xa0\u2013 Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn\u2019t have to hire a co-founder due to the quality of Toptal
• Host Gator\xa0\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
• Audible\xa0\u2013 Nathan uses Audible when he\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
• The Top Inbox\xa0 \u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens and follow-up with email sequences
• Proposify.biz \u2013 Kyle\u2019s business website
• Show Notes provided by Mallard Creatives