From Idea to 6 Figure Run Rate in 90 Days – Here are the Details
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Future revenue reports are only going to be shared on the Zero to Scale podcast. A weekly recap of what’s going on behind the scenes as we scale to $100k per month and beyond.
We hired our first employee! Michael Lambourne is currently helping part-time and will become a full-time team member starting March 30th. I have had previous experience with him from my marketing agency and know that he excels in copywriting. When he expressed interest in joining LeadFuze, I jumped at the chance to bring him onboard.
Michael will be working on customer email sequences, spearheading our content marketing efforts, and more. Some new customers have already had communication with him. His involvement will allow me to shift more of my energy into sales and planning.
With Michael’s addition, and with Dominic already onboard as CTO — I figured we should probably put up an About Us page.
I have also signed up for PostPolished.com — a blog post writing and editing service. This means that the LeadFuze blog will be seeing at least one and usually two posts per week. Brittany (from PostPolished), Michael, and myself will all be contributing to this blog going forward.
In February, we had a goal to reach $5,000 in recurring monthly revenue for the 90 day mark. Somewhat surprisingly, we soared past this number. As of day 90 — we are at $8,404/mo. This means we surpassed $8,333.34/mo in revenue to give us more than a $100k run rate.
A run rate takes your recent monthly revenue and multiplies it by 12 to give you an annual run rate. As of right now, our annual run rate is $100,848.
We also set a goal of 19 active customers. This goal was also achieved as we are now at 19 active customers.
When I originally came up with the concept for LeadFuze, I was just planning on having a small little business that could make $10k/mo. Soon after launch, I realized this had much bigger potential. I am still surprised at how fast things are moving though.
This means our three month growth looks like this:
What We Did to Get Customers
After taking things slowly last month, we fired back up our own LeadFuze system to target some accountants. We feel this is a pretty good market for us and a couple of our new customers came from that.
Two new sales actually came from resellers. Currently, we have two resellers who are testing the waters and they each brought one deal.
In addition, we had a couple of referrals from customers and the rest were primarily inbound leads (due to them finding us through our content marketing efforts).
Revenue also saw a spike from a few current customers upgrading their accounts. This is a good sign, and something I hope to get more systematic about in the future. We don’t really have any upsell strategy in place currently.
What We Are Working On
For starters, we have the podcast coming soon. It should be on iTunes in the beginning of April. We will be announcing more on this in the coming weeks.
The really big news as far as LeadFuze is concerned, is we have a new way of finding leads. In addition to our ability to track down leads by industry and keyword, we can now track leads based on technologies that a company might be using on their website.
We actually had our first customer signed up using this technology. We hadn’t announced this yet, but with this particular lead I felt like it would make a lot of sense so I jumped the gun and put it in motion for them.
More details on this will be announced later this week!
Things in the Works
For the next couple of weeks I will be adjusting to life with new team members. Between Michael, a new VA, and Brittany all coming onboard in one capacity or another, I will have my hands full with training and answering questions.
Before hiring anyone, my goal was to get to the end of the year with $25,000 in MRR. However, with the new hires, I feel $35,000 in MRR is achievable. This is because more of my time can be spent in sales and we will have more content being produced..
Backend development continues. We have upgraded servers and are now working on rebuilding the emailing component. I am expecting this to take a couple of months, but once we are done it will allow users to have access to more robust reporting and eventually will pave the way for their own logins. We are planning a self-service version of LeadFuze and this helps us get there.
My hope is that by the beginning of April — I will be able to shift more of my focus onto sales. April 10th I’ll be in Vegas for MicroConf. If anyone is going to that conference, come by and say hello!
You may have noticed the image in the Revenue section above. Instead of doing monthly goals, we have decided to share our year end goal. Each month we will be sharing the progress, what we’ve worked on to get to that point, and more.
We are shooting for $35,000 in MRR by the end of the year with 90 active customers.
I feel that both of these goals are attainable. However, what I don’t know as of yet is what our average customer duration will be. So without knowing that number, the year end goal is still a little bit of a shot in the dark.
Stay tuned as we share all the lessons we’re learning along the way to trying to hit this number.
The biggest challenge I was faced with this past month was a lack of time. I was literally doing all of the front end sales and follow-ups. Then managing the entire fulfillment process. From there, I was doing all of the marketing while still doing product management for our backend software progress.
Sometimes the hardest thing to do is try to hire someone when you’re already buried. So walking the tightrope of doing all the work, plus training felt a little daunting. However, we got through it and are now much better off for it.
Our next revenue report will be coming in the beginning of May. Signup at the bottom of this post (below the signature box) to follow our journey.