it took 3.5 years but we crossed USD 100K MRR. AMA

[yakamoz01]

@chanhhobieu What is your churn?

 

[chanhhobieu]

@yakamoz01 3.5 - 4% monthly

 

[yakamoz01]

@chanhhobieu How should i read that chart? In January, you were at ___ MRR and now you're at ~$105k MRR? What is that blank? Thanks!

 

[chanhhobieu]

@yakamoz01 Started the year at 68K

 

[yakamoz01]

@chanhhobieu Thanks! Seems like you guys are steadily growing. No aha moment that spiked your MRR?

More like the secret sauce is the continuous customer acquisition that hasnt plateaued yet coupled with low churn rate

Am I right or was there an aha moment?

 

[chanhhobieu]

@yakamoz01 you're exactly right -- no "aha" moment and self-critically I would say we haven't achieved true product market fit yet. But I think we're nearly there and I'm hoping 2024 will be the year of revenue expansion

 

[takioc]

@chanhhobieu A. What is your average revenue per customer per year (acv)?

B. What is a typical size company that buys your product?

C. I read you considered contractors vs employees and went with employees.

What was the reason for that?
Would you do the same with what you know today?

 

[chanhhobieu]

@takioc A. ACV just under 5K

B. Really varies. Smallest is doing just under $1MM/year in gross merchandise sales. Largest are household brands doing $billions/year across channels

C. I have some Big Opinions about the future of work and entrepreneurs' role in creating it. As corporate refugees, the founders wanted to create the jobs we wish we'd had. But in year 4 I would be willing to compromise on my principles a little for more free cash flow and fewer sleepless nights.

 

[jdoe]

@chanhhobieu Hey, thanks for sharing!

Could you elaborate, how would compromising your principles would change cash flow and sleep?

BTW, what you think of Gumroad (as an employer)? They, as I've read, have very unusual and relaxed (?) work culture?..

 

[613jono]

@chanhhobieu Curious, how much is that is actual profit ? Congrats on this btw.

 

[chanhhobieu]

@613jono Not much due to my irrational "I want to create good jobs with benefits" stance. Net profit

 

[613jono]

@chanhhobieu Thanks for sharing, one last question How would you invest $5000 if you just launched a SaaS ?

 

[chanhhobieu]

@613jono hard to say without more context -- if you've just launched, there are 1000 things you need and $5000 goes a very long way so I feel like there's no good/generic answer. maybe therapy, lol

 

[613jono]

@chanhhobieu True... thanks man cheers.

 

[dynadin]

@chanhhobieu Congrats!

 

[aangel]

@chanhhobieu How did you find the first 10 customers?

 

[chanhhobieu]

@aangel First 10 were network leads -- former coworkers, their connections, etc.

Details here:

https://www.reddit.com/r/SaaS/comments/18ljug8/comment/kdyuhcs

 

[meduhsinman]

@chanhhobieu Congratulations! What are the top three hurdles you face currently?

 

[chanhhobieu]

@meduhsinman

1. Tax complexity, you can avoid this when you're small but we're at or near the revenue threshold for most jurisdictions so our tax management costs are about to explode
2. "me too" competitors who see us growing and adopt our value prop / positioning / etc. without doing the work to deliver on them, hurting trust for everyone
3. Economic uncertainty >> sales cycles taking longer, some revenue retraction with tenured customers, feeling efficiency pressures we didn't even feel when we were broke and starting

 

[meduhsinman]

@chanhhobieu Economic nexus, ugh. Those are some killer problems.

How do you plan on delivering more value/innovation given those headwinds?