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SaaS Interviews with CEOs, Startups, Founders

KPISense Raising $1.5m Now on $1.2m Revenues As Tech Enabled CFO For SaaS Founders

24 Dec 2020

Transcription

Chapter 1: How did Will Cordes start KPI Sense?

0.031 - 12.023 Will Cordes

We've raised 225K. So for all intents and purposes, yes, we're bootstrapped. And I've got all that money and more in the bank. We've got about 350K in cash. So we've been really cash efficient as a business, thankfully.

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14.325 - 34.328 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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35.129 - 45.926 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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46.146 - 50.473 Will Cordes

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

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50.572 - 61.182 Nathan Latka

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

61.482 - 66.187 Unknown

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

66.968 - 93.848 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. Hello, everyone.

93.868 - 112.809 Nathan Latka

My guest today is Will Cordes. He has over a decade of experience helping SaaS and software businesses solve their strategic financial challenges. During that time frame, he's led, operated, advised, or invested in over 100 SaaS and software companies. In March 2019, he founded KPI Sense to reinvent the concept of outsourced CFO and FP&A work for SaaS and software companies.

112.829 - 118.075 Nathan Latka

Will, you ready to take us to the top? Yeah, let's do it. So that was a mouthful. I mean, are you a fractional CFO, basically?

Chapter 2: What financial services does KPI Sense provide for SaaS businesses?

477.412 - 494.599 Will Cordes

I think SAS Optics is a great platform amazing revenue recognition and good kind of reporting fundamentals. But there's an element of that that's last mile where they need a finance expert or a KPI metrics guru to go and extract value out of the data that they have. Love the idea. We talked further with the team.

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494.619 - 512.942 Will Cordes

I think they decided at the time it wasn't incremental enough for them to really pursue aggressively. And I was just idea stage at that point on a napkin. But it kind of got my head churning and kind of led to the foundation of the business. But we're not a rev rec tool. We're not a pure reporting tool, I would think about us as an amoeba.

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513.003 - 523.54 Will Cordes

We're taking, you know, SaaS Optics is going to help you with RevRec and subscription revenue data, where you're still going to have this delineation with your QuickBooks instance, your financial statement data, and then all of your analytics data.

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523.781 - 534.178 Will Cordes

We're bringing all of that together to help you be kind of a source of truth for historical financial information and forward-looking predictive information. So getting your financial model, your scenario analysis,

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534.395 - 560.807 Will Cordes

preparing for example for 2021 planning and budgeting and really nailing down your metrics and understanding that but you don't have to be the guru we'll be that expertise for you and give you the the materials and the feedback and kind of the decision making uh criteria that are going to help you execute and be a better business at the end of the day i mean do they probably hate that you're launching this and have grown so fast so quickly like why didn't they just hire you and have you lead a team yeah no well that's a good question uh you know honestly i think um

561.175 - 577.061 Will Cordes

You know, I talked to Dave about that a little bit. I think there was definitely interest of, you know, potentially working together. But I wanted to kind of go out and do my own thing. I don't think it's really competitive, though, to what they're doing. It's much more of a services layer. I mean, think about early days of like Salesforce, right?

577.903 - 596.853 Will Cordes

They created this robust services market on their platform, whether through applications, through professional services, from implementation, from architecture, right? It's the same concept with the subscription economy. There's a way to take that financial and operational data and build really interesting use cases that are monetizable, that drive value to customers.

597.313 - 612.377 Will Cordes

But it all is reliant on good financial data. And you know this with FounderPath, right? Getting good data from companies can be really challenging. There's all sorts of different shapes and sizes. So for us, we're able to unlock additional value from these different kind of tenants and kind of stool posts.

612.762 - 628.806 Will Cordes

But really, SaaS Optics and these other subscription management providers like a ChargeBee or someone else, they're not really monetizing this type of work. They don't have a robust set of CFO services or other things because that's not really what their focus is. That's not their target market. Maybe down the road, that's something they expand into.

Chapter 3: What is the average revenue KPI Sense generates from its clients?

747.723 - 754.199 Will Cordes

People that don't have good bookkeeping fundamentals, it makes it really challenging for us to do our work. So I'll go with a compound answer there.

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754.319 - 759.119 Nathan Latka

Number four, how many hours of sleep do you get every night? Say it again. How many hours of sleep do you get each night?

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759.84 - 766.768 Will Cordes

Oh, I'd say about six to seven. I've got a nine-month-old, so it's shockingly good for that situation.

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767.068 - 769.731 Nathan Latka

And what's your situation? Married, single, and do you have just one kid or more?

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770.773 - 777.06 Will Cordes

Married with one kid. So yeah, I'm a new father, entrepreneur. I'm rolling all the dice and it's COVID, so.

777.24 - 784.648 Nathan Latka

I love it. Interesting times. You're doing it all. And how old are you? I am 33. 33. Yeah. Last question. Started the journey two years ago.

784.748 - 805.671 Will Cordes

What's something you wish you knew when you were 20? I wish I knew when I was 20 to go out and own it and try and have my own kind of hustle side hustle. I mean, I think you're you're a good testament to this yourself. I think fear can be paralyzing. So I always tell people if they ask me, own your niche, go out and start your own side hustle.

806.312 - 820.947 Will Cordes

If you ever get laid off or fired, you have something to fall back on. And again, I think you've done that. I did that about 10 years ago, not 10 years ago, about six or seven years ago. And I've never regretted it since. So you own your outcome versus relying on somebody else.

820.967 - 839.14 Nathan Latka

Will Cordes, KPI since working with 40 SaaS customers on a recurring basis, just broke 1.2 million bucks in AR after launching about 18 months ago. Again, think of it like a highly strategic outsourced CFO, but a lot of other stuff as well. KPIs, forecasting, capital raising, et cetera. 13 folks on the team so far. They've already raised $225,000.

Chapter 4: How is KPI Sense different from traditional outsourced CFO services?

856.257 - 856.558 Nathan Latka

Thanks.

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