In Episode #312 Nathan interviews Dave Nevogt. Dave’s 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