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SaaS Interviews with CEOs, Startups, Founders

"He Hit $1m in Revenue Helping SaaS Founders Build MVP's "

13 Jun 2020

Transcription

Chapter 1: What inspired the guest to start a SaaS company?

0.031 - 7.442 Nathan Latka

Of that 85K in December, how much of it was one-time payments like to get the MVP out versus true recurring payments?

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8.224 - 18.9 John Steele

So we don't have any actually one times right now. Everything is on a recurring ongoing. So the contracts are, the statement of work is ongoing work until you tell us to stop. And that's how all of our contracts are arranged right now.

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20.737 - 40.839 Nathan Latka

You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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41.661 - 52.459 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public.

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52.68 - 56.987 Unknown

We got to grow faster. Minimum is 100% over the past several years.

57.102 - 67.693 Nathan Latka

Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Looker CEO Frank Bean before Google acquired his company for $2.6 billion.

68.714 - 72.698 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

73.498 - 98.483 Nathan Latka

If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. Now look, I never want money to be the reason you can't listen to episodes. On the checkout page, you'll see an option to request free access. I grant 100% of those requests, no questions asked.

100.403 - 118.817 Nathan Latka

Hello everyone, my guest today is John Steele. He's been coding since he was a teenager and had a career in IT before he went to law school and decided what he really wanted to be was the CEO of a SaaS company. Ceres Codes is his company. It was founded upon his passion for coding. He's married, has two kids, and cashed in on two World Series of Poker events.

Chapter 2: How does Series Code help startups build their MVPs?

596.713 - 600.579 John Steele

They want to put the least amount into the equity and pay as much cash as possible.

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601.901 - 624.578 Nathan Latka

Well, the the so let me do the flip side of that as a smart founder who wants to preserve cash early on they're not actually selling you equity right safe is really a dead instrument with the expectation it's going to convert to equity so they could after a year and a half screw you because there's no interest rate pay you back that money and legally there's no recourse for you correct

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625.469 - 640.525 John Steele

Well, I don't think they can pay back the money. It's in that safe. If they have a financing round, we get to participate in it. But there is the possibility that it just goes nowhere. And like all safe holders, you get nothing. I mean, we really are banking on it going somewhere.

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640.505 - 658.345 Nathan Latka

Got it, got it, got it. Okay, so you obviously can't extend this to everybody because you have to put on your VC hat a little bit and say, what's the likelihood they're going to do a funding round or not? So, I mean, how many times have you done this with a company and still today, a year, two, three years later, they still haven't raised any equity or had a liquidation event?

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659.106 - 681.193 John Steele

So our early clients are like that. The ones where John Steele was the salesperson, right? We have a couple that are still... In that, they haven't shut their doors, but they're still going. We're still providing work at a really great price. We are getting better and better at vetting clients who come out. We haven't had anybody go through a round yet because the series code.

681.781 - 697.46 John Steele

as auxiliary teams, I was doing this, it was the wild West, whatever John could negotiate is what we went and got. We decided to put a product around it really. And that's where we got the lawyers involved and wrote up the contracts and made it a standard offering at the beginning of this year. So all of those clients who've come in this year, nobody's gone to financing yet.

697.48 - 701.545 John Steele

It's a little too early. Um, but yeah, so we're still going through it.

701.565 - 704.489 Nathan Latka

Well, so give me some context in 2019, how many customers did you serve?

706.171 - 708.193 John Steele

Um, so we had,

Chapter 3: What is the pricing model for developing a SaaS product?

946.637 - 953.383 Nathan Latka

Oh, that's good. That's good. That's obviously a good place to be. Now, could you raise equity, you know, cash for what you're doing or no?

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954.804 - 969.905 John Steele

We probably could. It's funny, we sponsor a lot of these entrepreneurs events like the Rockies Venture Club. And when we have a booth there, we have a lot of investors come up to us. Oh, so you're raising money. What's it for? We say, oh, we're not. We're like, you should be. But we just right now aren't looking into it. We turn it down.

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970.326 - 984.707 Nathan Latka

Yeah. I mean, how is there a way? I mean, you only want to raise capital if you can deploy it in a way that helps you grow your business, right? Your bottleneck is finding more engineers to take on more hours of development work. That's like a hard thing to grow, right? I mean, you're an agency.

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985.548 - 1006.827 John Steele

Yeah. And so we actually are really good. I've been doing it for I mean, even before starting this up for five, six, seven years of finding developers themselves. We have a process that takes 40 applicants and funnels it down to one person who joins the team, including, you know, a programming test that is actually paid. And so we give everybody the same test.

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1006.887 - 1022.847 John Steele

And so we know where they fit in the in line and stuff. So we actually can get developers in pretty quick in a week or two, and we've been able to do this just routinely over and over. But we don't have that same kind of system for the team captain who is a bit more dynamic and has to have a higher level of skill.

1023.547 - 1028.833 John Steele

And I just don't know the way to bring them in yet without working with them and kind of getting a good feel for them.

1028.853 - 1036.775 Nathan Latka

Where are you sourcing the 40 developers? I mean, are you using sites like TopTal, Upwork, and then basically bringing them onto your own platform and then hiring one full-time? Correct.

1036.896 - 1042.161 John Steele

So yeah, we use those freelancing platforms that are out there because they have so many people around the globe connected to it.

1042.421 - 1049.549 Nathan Latka

Yeah. Do you put your current projects through Top Talent Upwork or do you actually hire these 28 people or full-time on your personal balance sheet in P&L?

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