His Coffee Shops Do $1.8M But His Crowdfunding Platform is More Impressive With $550k 2016 Revenue on 486 Projects With $2.5M Funded with CEO McCabe Callahan

McCabe Callahan

In Episode #616, Nathan interviews McCabe Callahan who’s been an entrepreneur his entire life. He began with a coffee shop named Mugs Coffee Lounge which has been operating successfully in Fort Collins, Colorado since 2002. He began a company called Community Funded in 2011 out of his passion for provided technology that connects, supports and empowers people.

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Famous Five:

  • Favorite Book? – E-Myth and Good to Great
  • What CEO do you follow? – Elon Musk
  • Favorite online tool? — Slack
  • Do you get 8 hours of sleep?— No
  • If you could let your 20-year old self, know one thing, what would it be? – “Pay attention to numbers”

Time Stamped Show Notes:

  • 01:32 – Nathan introduces McCabe to the show
  • 02:33 – Mugs Coffee Lounge is McCabe’s first real business
  • 02:43 – McCabe went to Colorado State University
  • 02:50 – McCabe just went back from Europe when he had the idea of Mugs Coffee Lounge
  • 02:56 – Mugs Coffee Lounge was the first wireless internet café in Fort Collins
  • 03:11 – Building relationships is the key to a successful coffee lounge
  • 03:36 – First year revenue
  • 04:04 – McCabe is 36 now but when he was 24 he’s already opening his 5 coffee shops
  • 04:22 – Total topline of all the coffee shops and restaurants
  • 04:58 – McCabe didn’t raise any capital
  • 05:31 – McCabe’s credit card debt when he started Mugs Coffee Lounge
  • 05:48 – McCabe also had debt from other sources
  • 06:43 – “Coffee is a good business to be in. There’s no recession”
  • 06:58 – McCabe shares where he sells his business to
  • 07:07 – McCabe’s income is now generating well
  • 07:16 – McCabe did $ 1.6M in sales in 2016
  • 07:30 – McCabe shares how he started with Community Funded
    • 08:17 – McCabe had to find a way to secure a loan to open up a location
    • 08:31 – The amount McCabe wanted to loan
    • 08:45 – 2009-2010 was the hardest time for McCabe
    • 09:41 – McCabe was about to give up when one of his regulars offered help
    • 10:05 – 5 months after the McCabe’s next shop opened, he heard about NPR’s Kickstarter
    • 10:20 – McCabe thought what if he could something like Kickstarter but for communities
  • 10:44 – Community Funded started as bootstrapped and just recently raised a round
  • 11:03 – Community Funded first round raised $ 40K-75K
    • 11:29 – Total funding was $ 2.3M
    • 11:38 – Rounds are equity round
  • 11:50 – McCabe shares Community Funded’s valuation
    • 12:18 – People believed in Community Funded’s vision
  • 12:38 – Community Funded’s is a SaaS model
  • 13:46 – Sample of fundraising raised in Community Funded
  • 14:26 – Community Funded’s focus
  • 14:53 – Current Community Funded’s revenue and revenue goal for 2017
  • 15:54 – Total transaction volume in 2016
  • 16:03 – 2016 total revenue
  • 17:21 – The Famous Five

3 Key Points:

  1. Lack of funds is not a hindrance in building a company.
  2. There’s nothing wrong sharing your problems with your regulars – you don’t know who can offer help.
  3. Stick and pay attention to your numbers.

Resources Mentioned:

  • The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
  • Klipfolio – Track your business performance across all departments for FREE
  • Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
  • Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
  • 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