SaaS Interviews with CEOs, Startups, Founders
1184 California Mom Bootstraps HR Tech to $5m in ARR
21 Oct 2018
Chapter 1: What is the main topic discussed in this episode?
Time management is the key, which makes sense. She's running like four companies. Unbelievable. Bootstrapped in California. She's also a mom of two. Launched Target Recruit, which is her SaaS company, back in 2008 when she, again, birthed her first child.
Chapter 2: How did Reena start her entrepreneurial journey after becoming a mom?
The company is now doing really, really well, helping mostly sales and HR tech folks recruit, especially recruit moms. She's now serving 300 customers, doing about $400,000, $500,000 a month in revenue, growing 30% year over year. Totally bootstrapped with her team of 50 between California and California.
India also joined and launched mom relaunch just on top of that platform to help moms get educated and get great jobs. This is the top entrepreneurs podcast where founders share how they started their companies and got filthy rich or crash and burn. Each episode features revenue numbers, customer counts, and other insider information that creates business news headlines.
Chapter 3: What innovative solutions does TargetRecruit provide for recruitment?
We went from a couple of hundred thousand dollars to 2.7 million.
I had no money when I started the company.
It was $160 million, which is the size of any IPOs. We're a bit strapped. We have like 22,000 customers. With over 5 million downloads in a very short amount of time, major outlets like Inc. are calling us the fastest growing business show on iTunes. I'm your host, Nathan Latka, and here's today's episode. Hello, everyone. My guest today is Reena Gupta.
She's a serial entrepreneur and philanthropist. Interestingly, dove into entrepreneurship when most women take a career break after her first child was born. She's now doing that via a tool called Mom Relaunch, which we'll jump into.
She also began with a staffing company called Avankia, then moved on to a company called Target Recruit, the most innovative talent management platform built on the Salesforce platform that modernizes the recruiting cycle at organizations from front to back office.
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Chapter 4: How has Mom Relaunch impacted women returning to the workforce?
All right, Reena, are you ready to take us to the top?
Yes, I am ready. Thanks a lot, Nathan.
All right. So where are you spending more of your time, mom relaunch or target recruit?
Currently, I'm spending sort of equal time in both the companies. When I started mom relaunch, I thought it will take its own time to grow. But the way we are getting the support and initiatives, it has kicked off at a very fast pace. And I'm still trying to juggle the time between the two companies.
So what are the business models on each of them? Is mom relaunch just information or membership site? And what's target recruit?
So let me give you a little background of how it all comes together so you will understand why and how I'm doing this.
I want to do that first, but I want to get into that. But first, just tell us the current business model and then work backwards and tell us the story.
Absolutely. Target Recruit is a subscription-based applicant tracking system and vendor management system, which is based on salesforce.com. The business model is we have a per user license cost as well as some services.
And what about mom relaunch?
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Chapter 5: What challenges does Reena face in balancing multiple companies?
Are we talking 10 bucks a month or 10 grand a month or more?
Our target recruit is per user license about $99 per user per month.
Okay. And the average logo that signs up has how many users?
I would say between 25 to 75 is a mid-size. If it is a small company, it's about five to 10 licenses.
Okay, so I was gonna say 20 people at 99 bucks a month. So the average customer maybe pays you two grand a month. Is that fair?
For the smaller size. If it is mid-size, then it is 75 users on average. So depend on the client size.
Okay, but what I'm trying to do is get a sense of your average customer. Is about 20 people, I mean, is that a good average or no?
I would say more like 30, 35 is a good number. Fair enough.
Yeah, that's good. And the 99, that's per month, not per year, right?
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Chapter 6: What is the business model behind TargetRecruit and Mom Relaunch?
So I would say one of our, I always like to use this customer because we grew with this customer. And this is our MedPro Staffing.
MedPro Staffing?
MedPro staffing. There in Florida, one of our, I would say the customer who really knows how to work with a company as a vendor, as a partner. And they, in fact, I always go back and say that we are in healthcare because of MedPro staffing. They helped us build products that are specifically for healthcare industry. They helped us even architect the, they were, we were working with this.
So a customer like that is the reason why companies like us survive. So I love to talk about them.
They've been with you back since 2008, huh?
Almost that time. I would say 2010. But it's one of my favorite stories to talk about. It's like every customer you can go and learn from them. But there are very few customers that understand how it makes to work like a partner.
And what have you scaled to today in terms of total customers paying you?
I would say close to about 300 is the right number. And then of course that goes up and down and we started to carve out our expertise also in scaling to larger clients and not only the SMB clients.
Sure. Yeah. I mean, but I mean, if I do the math on that 300 customers, if each of those logos on average have 30 seats a pop paying 99 bucks a month, I mean, that puts you at like 890 grand a month in revenue. Is that generally accurate?
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