SaaS Accounting $238k MRR, $4.2M Raised, 200 Customers with Ceterus CEO Levi Morehouse

levi-morehouse

In Episode #421, Nathan interviews Levi Morehouse, the founder and CEO of Ceterus—a company that offers niche accounting and bookkeeping for small businesses. Listen as Nathan and Levi talk about scaling an inside sales team, raising Series A after 8 years of business, and why you need to become a master of working smart and hard.

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Famous Five:

  • Favorite Book? – Zero to One
  • What CEO do you follow? – Jeff Besos
  • Favorite online tool? — Google Apps for Business
  • Do you get 8 hours of sleep?— No
  • If you could let your 20 year old self know one thing, what would it be? – Work smart AND hard.

Time Stamped Show Notes:

  • 01:40 – Nathan introduces Levi Morehouse to the show
  • 02:09 – How Levi’s solution helps small businesses
  • 02:38 – How Levi’s company generates revenue
  • 02:58 – Revenue in 2015 = $2.2M
  • 05:15 – 2008 to 2015 this was a bootstrapped, service-based business
  • 06:00 – Some of the most successful businesses are those that start as agencies
  • 06:44 — $4.2M in Series A
  • 08:05 – Value of the company in the $25M to $40M range
  • 08:40 – Serving 200 customers in 2015
  • 09:12 – Month to month compensation
  • 09:28 – Acquisition costs
  • 10:00 – Churn is less than 1%
  • 11:45 — $280K in rev during September 2016
  • 12:40 – When the capital was raised from
  • 13:08 – Lifetime value of a customer is around $30K
  • 13:49 – Right around 30 employees at the moment
  • 14:30 – Cash burn per month is around $50k
  • 15:55 – Small businesses NEED help and help is more than tools, it’s about guidance
  • 16:28 — @Levimore
  • 18:41 – The Famous Five

3 Key Points:

  1. Don’t be afraid to bootstrap for years before pivoting to raised capital.
  2. When you abandon your job and launch a business, be prepared to take a pay cut.
  3. Keep churn down and your company will win—fact.

Resources Mentioned:

  • Toptal – Nathan found his development team using Toptal  for his new business Send Later. He was able to keep 100% equity and didn’t have to hire a co-founder due to quality of Toptal  developers.
  • 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.
  • @Levimore – Levi’s Twitter handle
  • Show Notes provided by Mallard Creatives