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SaaS Interviews with CEOs, Startups, Founders

1640 How He's Scaled to $200k in MRR off $200/mo Plans

20 Jan 2020

Transcription

Chapter 1: What company did Marc Rutzen launch and what services does it provide?

0.031 - 16.554 Nathan Latka

launched a company called Wint, which is essentially bookkeeping, helping folks scale and get their books done faster in a fun way. They've got about a thousand customers paying 200 bucks a month. So doing about $200,000 per month right now on revenue up from $150,000 just about a year ago. There are burning capital.

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16.594 - 38.567 Nathan Latka

They've raised 5 million bucks, 70 people based between Sweden and Sri Lanka, under 5% revenue churn per month spending, you know, call it 2,400 bucks to get a new $200 a month customer for a 12 month payback as they look to scale. Hello, everyone. My guest today is Jorn Elfgren. He is the CEO and founder of a company called of a company called Wint.se. He's a tech scallop on a mission.

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38.587 - 46.22 Nathan Latka

They want to revolutionize the bookkeeping industry and make entrepreneurial life as easy as possible at the same time thinking about how to bring clean water to the world.

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Chapter 2: How has the company scaled to $200k in monthly recurring revenue?

46.24 - 47.822 Nathan Latka

All right, Jorn, are you ready to take us to the top?

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48.564 - 50.206 Jorn Elfgren

Yeah, that's great. Nice to meet you.

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50.427 - 54.253 Nathan Latka

All right. How are you doing both of these things at once bookkeeping and clean water?

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54.571 - 80.657 Jorn Elfgren

Yeah, well, for the first, I just checked out as a CEO, so I'm working at the founder of Wind, and I have more time since I checked out, and now I'm on the board, and I've been working with both Wind and some startups and some of the clean water projects because I think the world needs clean water. Okay, so for the purpose of this... I think we're going to have a real climate crisis.

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80.677 - 91.129 Nathan Latka

For the purpose of this interview, since the listeners are mostly B2B SaaS folks, we'll focus on Wint, which is your B2B SaaS product, correct? Yeah, that sounds great. Okay, great. So tell us what the company does and how you make money.

92.29 - 108.997 Jorn Elfgren

Well, we make money on a subscription-based model. We do all the accounting. We build the software and we have full solutions. We take care of everything, everything. According to accounting. You need a standard, you need an accountant. You don't when you use Wint.

109.017 - 109.237 Nathan Latka

Okay.

109.277 - 109.938 Jorn Elfgren

That's the basic.

110.198 - 112.201 Nathan Latka

And so what do people pay on average for this per month?

Chapter 3: What is the subscription model and pricing for the service?

236.297 - 243.105 Jorn Elfgren

And that's how we get the customers to visit our website and they convert to the sales team.

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243.345 - 245.768 Nathan Latka

So, Jorn, what's your team size today? How many people?

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246.102 - 255.376 Jorn Elfgren

Well, we are 70 people in Sweden. 7-0? Yeah, 7-0. And we have 10 developers in Sri Lanka.

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256.378 - 262.688 Nathan Latka

Okay, so 70 people total. And break down the content marketing and sales teams. How big are those teams?

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263.689 - 269.098 Jorn Elfgren

The content at land, approximately 10 people doing the marketing and sales.

269.578 - 273.865 Nathan Latka

Okay, 10 are marketing and sales. And then what about the content? Who's creating all your content?

274.132 - 282.149 Jorn Elfgren

We do it ourselves in the team, in the content team, in the marketing, but a really small team. And we've done that since we launched, actually.

283.292 - 294.115 Nathan Latka

How did they decide? So, I mean, the reason I ask you, you say your number one growth channel is content marketing. Well, like, so what does that mean? How do they figure out what keywords to write about? How long are the posts? Like, what are they doing on a daily basis?

294.432 - 320.294 Jorn Elfgren

On a daily basis, now we use this Christmas calendar, and we have one of our guys, he's called Janne. We make small films on Janne every day to just build on what to think about coming to the end year. That's one thing, and we publish it every day. And the other one, we write different articles, both from our client's perspective and how to free your timing and so on.

Chapter 4: What growth strategies has the company implemented?

428.086 - 439.378 Nathan Latka

When do you think you'll be cashflow positive? I think it will be in 12 to 18 months. I see. Very good. And any kind of SaaS company, churn is critical. What's your churn rate today and how do you keep it low?

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440.62 - 453.958 Jorn Elfgren

Well, we have a high churn rate because of the old traditional way, but the churn rate on The new clients, they are low, but I don't have the actual figures in my head. So I can't tell you, sorry.

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454.319 - 479.961 Nathan Latka

What are they definitely under when you say low? Low, well, it's, I can count it on my fingers. Do you mean under 5% a month, under 10% a month? Yeah, under. Under what? 5% or 10%? Under 5%. Okay, so under 5% churn per month. And when you look at that on an annual basis, are you driving a lot of upsells and expansion revenue or no?

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481.624 - 495.459 Jorn Elfgren

Well, actually, no. We have a flat rate. It depends on how the clients are growing. If The price is going up and if they use a higher volume, it's like a more paid on the tradition on the subscription.

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495.779 - 508.992 Nathan Latka

Okay. And, and when you're acquiring these companies and you look at your fully weighted CAC, right. To get a new, what would you say? I think you said they pay on average, uh, how much, 200 bucks a month. What, what are you spending to get that customer in the first place?

512.115 - 539.052 Jorn Elfgren

Do you know? That's one of the big changes we've done. We have a high. I don't have the figures in my head, but we have changed and going on a specific target market. And for us, it's the real estate market in Sweden. If you're a real estate agent, that's what we do. And they are really low because it's a unique solution for them. So it's a much lower cost on those. That's one of the big changes.

539.112 - 560.759 Jorn Elfgren

Because when you run a company, you... You used to have your books, did some, somehow you do them, and they're not correct. We have a lot of customers who transform it into the system from the start, and that's why we also try to reach the new start companies and some segments, some verticals, like the real estate agents.

561.72 - 566.427 Nathan Latka

So when you say you've gotten the CAC lower, how low have you gotten it?

568.111 - 569.733 Jorn Elfgren

Well, I don't have the figures.

Chapter 5: What is the current team size and structure of the company?

697.567 - 705.683 Nathan Latka

They've got about a thousand customers paying 200 bucks a month. So doing about $200,000 per month right now in revenue up from $150,000 just about a year ago. There are burning capital.

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705.703 - 719.358 Nathan Latka

They've raised $5 million, 70 people based between Sweden and Sri Lanka, under 5% revenue churn per month, spending, you know, call it $2,400 to get a new $200 a month customer for a 12-month payback as they look to scale. Joran, thank you for taking us to the top.

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719.378 - 721.002 Jorn Elfgren

Thank you. Great meeting you.

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