John Nunemaker

here's how you figure that out. What I've always done is like, you know, it's basically napkins.

here's how you figure that out. What I've always done is like, you know, it's basically napkins.

It's like, look, you have this much in revenue and you have this much in profit and you got to just look at the business and say like, is it fair to just look at the profit or is it, you know, should I look at the revenue and then, cause I can cut the, you know, the expenses and make the profit larger or like, it's kind of a holistic thing. It's just like, look,

It's like, look, you have this much in revenue and you have this much in profit and you got to just look at the business and say like, is it fair to just look at the profit or is it, you know, should I look at the revenue and then, cause I can cut the, you know, the expenses and make the profit larger or like, it's kind of a holistic thing. It's just like, look,

OK, if it's at, you know, X hundred thousand and the expenses are like 20 percent, the fixed expenses of no one working on it, just the servers and software to make sure it's up and running, you know, 10, 20 percent, whatever it is, then you can say I've got the rest of that 80 percent to pay debt service and also to like pay people to work on it or pay myself to work on it.

OK, if it's at, you know, X hundred thousand and the expenses are like 20 percent, the fixed expenses of no one working on it, just the servers and software to make sure it's up and running, you know, 10, 20 percent, whatever it is, then you can say I've got the rest of that 80 percent to pay debt service and also to like pay people to work on it or pay myself to work on it.

or any of those kinds of options. And if I did that, I've got this massive spreadsheet with all these adjustable variables. And I learned these like really cool functions, thanks to ChatGPT, where I was like, how do I amortize a loan over 15 years in an Excel function? And it's like, oh, well, you need to use PMT. And then like how much principal is left if I do this?

or any of those kinds of options. And if I did that, I've got this massive spreadsheet with all these adjustable variables. And I learned these like really cool functions, thanks to ChatGPT, where I was like, how do I amortize a loan over 15 years in an Excel function? And it's like, oh, well, you need to use PMT. And then like how much principal is left if I do this?

And like, so I used all those things and I basically got it to where I could say like, okay, if I grow 0%, negative 5%, 5%, 10, 15. And I'm conservative. So I'm like, I'm not going to say that I'm going to grow 50%. I don't feel like that's going to happen. I'm like, realistically, we're going to put in a good five, 10, 15, 20% effort.

And like, so I used all those things and I basically got it to where I could say like, okay, if I grow 0%, negative 5%, 5%, 10, 15. And I'm conservative. So I'm like, I'm not going to say that I'm going to grow 50%. I don't feel like that's going to happen. I'm like, realistically, we're going to put in a good five, 10, 15, 20% effort.

And I think we'll get it out of there, you know, as time goes on, but there's not any, I don't feel like there's any fancy formula. I don't feel like probably other people do that are more experienced for me. It's just like, I looked at it. I'm like, it seems like a good business. It's built in the way that I would run a business. Very low expenses, very high profit margins.

And I think we'll get it out of there, you know, as time goes on, but there's not any, I don't feel like there's any fancy formula. I don't feel like probably other people do that are more experienced for me. It's just like, I looked at it. I'm like, it seems like a good business. It's built in the way that I would run a business. Very low expenses, very high profit margins.

It's recurring revenue. I'm looking at all those kinds of things. And I'm like, why would I say no? Other than maybe I'm too busy. But I'm like, it has money to pay people to work on it. So it doesn't matter if I'm too busy, really. It really just matters, can it afford to pay people to work on it? And then it's just a matter of like, do you have the money or the...

It's recurring revenue. I'm looking at all those kinds of things. And I'm like, why would I say no? Other than maybe I'm too busy. But I'm like, it has money to pay people to work on it. So it doesn't matter if I'm too busy, really. It really just matters, can it afford to pay people to work on it? And then it's just a matter of like, do you have the money or the...

The financing options or other things like that to make it happen. And again, because of my fortunate past, I've got some of that stuff lined up. And so I was able to finance this. Because I never have financed anything from a software standpoint. And I was like... Let's figure out how to do that. That sounds fun.

The financing options or other things like that to make it happen. And again, because of my fortunate past, I've got some of that stuff lined up. And so I was able to finance this. Because I never have financed anything from a software standpoint. And I was like... Let's figure out how to do that. That sounds fun.

And I learned a lot, you know, over the last two months of like how to do that, you know, little weird gotchas from the bank, like things like at the very end, we had to like change ownership percentages and things like that, or other people were going to have to personally guarantee beyond me and which I did not want. I wanted it just to be my risk and stuff like that.

And I learned a lot, you know, over the last two months of like how to do that, you know, little weird gotchas from the bank, like things like at the very end, we had to like change ownership percentages and things like that, or other people were going to have to personally guarantee beyond me and which I did not want. I wanted it just to be my risk and stuff like that.

So yeah, that's kind of like the longer meandering answer is like in general, SaaS apps that are, let's say under a million,

So yeah, that's kind of like the longer meandering answer is like in general, SaaS apps that are, let's say under a million,