{"id":5698,"date":"2014-06-03T14:23:40","date_gmt":"2014-06-03T14:23:40","guid":{"rendered":"http:\/\/insideintercom.io\/?p=5698"},"modified":"2020-07-30T13:03:56","modified_gmt":"2020-07-30T12:03:56","slug":"how-baremetrics-went-from-0-to-14000-per-month","status":"publish","type":"post","link":"https:\/\/www.intercom.com\/blog\/how-baremetrics-went-from-0-to-14000-per-month\/","title":{"rendered":"How Baremetrics went from $0 to $14,000 per month"},"content":{"rendered":"

Eight days. That\u2019s how long it took Josh Pigford to build and launch the foundation of what, in six months, has turned in to a $14,000\/month SaaS business.<\/p>\n

In this guest post Intercom<\/a> customer Josh Pigford<\/a>, founder of Baremetrics<\/a>, which provides SaaS analytics for Stripe<\/a>, looks at why shipping small actually leads to going big. He suggests the idea that it takes months (or even years) to launch something profitable is bogus.<\/p>\n

Start small<\/h2>\n

Shouldn\u2019t you shoot for the proverbial stars and make a huge impact? Go big or go home, right? It turns out that\u2019s actually a pretty short-sighted way to build a business. The longer you build in a bubble without customer feedback, the more likely you’re building the wrong product.<\/p>\n

When you build in a bubble, slaving away on the next big thing (whether it\u2019s a feature of your product or the product itself), by default you have to make a lot of assumptions. Assumptions about how users will interact with it. Assumptions about how much they\u2019ll use it. Assumptions about whether they actually want to use it at all.<\/p>\n

When you\u2019re starting out, time spent on things that don\u2019t have a meaningful impact on your business is detrimental. Often fatal. The key is to invest your time in the areas where you’ll get the biggest return.<\/p>\n

Let\u2019s look at a real world example of this.<\/p>\n

Buying time, from $0 to $2K<\/h2>\n

Back in October 2013 I needed business metrics for a couple of SaaS products I had. Both used Stripe for payments, which gave me all of the raw data I needed to calculate things like MRR (monthly recurring revenue), LTV (lifetime value), monthly churn, ARR (annual run rate) and lots of other three-letter acronyms.<\/p>\n

No solution out there could gather this data without significant setup, even then I had a hard time trusting the data, so I decided to build it myself.<\/p>\n

Over the course of about eight days (spread across a month of juggling client work, two existing SaaS products and international travel), I built and launched the first version of Baremetrics.<\/p>\n

That first version was raw. It didn\u2019t do anywhere close to everything I felt like it really needed to do. There were a lot of manual processes that wouldn\u2019t scale. The design was rough around the edges. But you know what? It didn\u2019t matter.<\/p>\n

\"\"<\/div>\n

That first incomplete, unscalable version got me to $2,000 in monthly recurring revenue in around eight weeks. But more importantly, it bought me time.<\/p>\n

Getting paid to experiment<\/h2>\n

Launching small had two major benefits. First, it created an instant source of revenue. Second, it bought me time to learn how my customers actually wanted to use the product.<\/p>\n

The nuance here is that the intersection of those two benefits is where the real value lay for me. It got me usage and feedback from paying customers. These weren\u2019t users in a trial period or on a free plan. These were people looking to get actual value out of Baremetrics.<\/p>\n

\"\"<\/div>\n

That\u2019s the reason shipping fast and frequently is so critical. Until your product or feature is out in the wild, being used by real users, you\u2019re building in a tunnel of assumptions.<\/p>\n

You need empirical proof what you\u2019re working on will pay off. And the only proof you\u2019ll get is with usage.<\/p>\n

Reduce the timeframe between building software and it being used by paying customers, and the speed at which you can grow your business will increase exponentially. This is what Marc Andreessen calls cycle time compression<\/a>.<\/p>\n

Launching small and fast<\/h2>\n

What does the process for launching fast and frequently actually look like? It\u2019s really the same whether you\u2019re launching the product itself or just launching features.<\/p>\n

How to choose what’s next<\/h3>\n

You invariably will have a long list of potential features or ideas for your product. Picking what to work on next is often just a shot in the dark, but early on you need things that make big impacts. You\u2019re always better off shooting for things that will have a 10\u201320% impact versus lots of small things that will only have a 1\u20132% impact.<\/p>\n

For me, I needed to impact revenue, so that drove my decision making process directly towards the things I knew would provide the biggest boost in revenue.<\/p>\n

Establish the minimum and ship it<\/h3>\n

After you pick what to work on next, establish the absolute bare minimum that\u2019s needed to get it into production. What you need to test as quickly as possible is if anyone has even a remote desire to use this feature.<\/p>\n

It won\u2019t be perfect. It will lack polish. It will have bugs. It won\u2019t do everything your customers expect it to. And that\u2019s precisely where you want to be.<\/p>\n

Ship it.<\/p>\n

Monitor customer usage<\/h3>\n

Once you\u2019ve shipped it, start monitoring usage. Do customers enable the feature? If you enable it, do some users want it turned off? Do they interact with it in any way? Do they share it? Does it increase login frequency?<\/p>\n

Your user\u2019s actions are what speak the loudest. You need to ask a slew of questions internally about the feature and measure if the actions of your customers moves the needle in the right direction for the metrics that matter to your business.<\/p>\n

Iterate on what works<\/h3>\n

If it has a positive impact on your business, then iterate on the feature more. Start adding more polish, build out functionality\u2026then keep measuring.<\/p>\n

If it has a negative impact on your business, kill it and move on. There are too many things you can do to make a big impact on your business rather than forcing things your users don\u2019t actually want or use.<\/p>\n

Don\u2019t be afraid to kill what doesn\u2019t<\/h3>\n

It\u2019s easy to get attached to something that you put dozens or hundreds of hours in to. But you have to detach yourself, realise it’s a sunk cost, and do what\u2019s best for the business.<\/p>\n

Remember, the key is to make the biggest impact possible in as little time as possible.<\/p>\n","protected":false},"excerpt":{"rendered":"

Eight days. That\u2019s how long it took Josh Pigford to build and launch the foundation of what, in six months, has turned in to a $14,000\/month SaaS business. In this guest post Intercom customer Josh Pigford,…<\/p>\n","protected":false},"author":90,"featured_media":5717,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"category":[5],"tags":[318,149,62,151],"coauthors":[373],"class_list":["post-5698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-product-and-design","tag-customer-story","tag-growth","tag-product-management","tag-startups-2"],"yoast_head":"\nHow Baremetrics Went From $0 To $14,000 Per Month<\/title>\n<meta name=\"description\" content=\"Josh Pigford, founder of Baremetrics, which provides SaaS analytics for Stripe, looks at why shipping small actually leads to going big. 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