SaaS: “We’re Bootstrapped Competing with $400m Raised Qualtrax!”

Greg Harris

In Episode #855, Nathan interviews Greg Harris. His company is Quantum Workplace and he started with a vision to create tangible measures for leadership strength inside of companies. His company surveyed tools for measuring employee engagement and recognizing the best places to work. It’s grown into an engagement platform that talent-minded companies use now to accelerate performance.

Famous Five:

  • Favorite Book? – Blue Ocean Strategy
  • What CEO do you follow? – Reid Hoffman
  • Favorite online tool? — Slack
  • How many hours of sleep do you get?— 4.5
  • If you could let your 20-year old self, know one thing, what would it be? – Show kindness to other people

Time Stamped Show Notes:

  • 01:45 – Nathan introduces Greg to the show
  • 02:20 – Quantum Workplace is an employee-engagement platform
  • 02:43 – The buyer is an HR leader and the user is the manager or employee who is a high engager
  • 03:00 – Quantum Workplace is a SaaS business with an annual contract
  • 03:05 – Core financial metric is MRR, not ARR
  • 03:24 – ACV is $25K to $30K
  • 03:43 – Quantum Workplace is already 14 years in the industry
  • 04:27 – Greg was into social sciences back in college
  • 05:11 – Quantum Workplace is bootstrapped all the way
  • 06:20 – Being bootstrapped has worked for Quantum Workplace
  • 07:47 – Quantum Workplace has 1500 customers from transactional models and 600-700 direct, mid-market customers
  • 08:15 – The $30K ACV is from the direct customers which makes 80% of their revenue
  • 08:41 – Last year, Quantum Workplace made $7.2M in revenue
  • 09:25 – Quantum Workplace doesn’t sell per seat
  • 09:43 – Gross margin is average
  • 10:04 – Annual gross churn is under 5%
  • 11:00 – Net revenue churn is net-negative
  • 11:30 – Quantum Workplace attended trade shows
    • 12:10 – There was no ROI made from it
  • 13:55 – Last month paid ad spend was $15K
  • 14:22 – Team size is 53 with 12 in marketing and sales
  • 14:46 – CAC
  • 15:13 – Payback period is 4 months
  • 16:00 – The Famous Five

3 Key Points:

  1. If being bootstrapped has been working for you, then there’s no reason to raise capital.
  2. Staying in your industry for years requires an understanding of your customers and their needs.
  3. Be kind to people even if they’re not kind to you.

Resources Mentioned:

  • Simplero – The easiest way to launch your own membership course like the big influencers do but at 1/10th the cost.
  • 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
  • GetLatka – Database of all B2B SaaS companies who have been on my show including their revenue, CAC, churn, ARPU and more
  • Klipfolio – Track your business performance across all departments for FREE
  • Hotjar – Nathan uses Hotjar to track what you’re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
  • 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