Episode 702 | Revenue vs. Profit Multiples, When to Lower Prices, and More Listener Questions

Startups For the Rest of Us

Rob Walling

Entrepreneurship, Management, Business, Marketing

4.9 • 819 Ratings

🗓️ 27 February 2024

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode 702, join Rob Walling for another solo adventure where he answers listener questions. He answers how to introduce friends to bootstrapping, when to lower your prices, and addresses the difference in revenue and profit multiple valuations. Rob also offers advice when weighing a career move versus building side projects and scaling your MVP. Episode Sponsor: Is your outsourced development team dropping the ball? Maybe you’ve worked with a team that just couldn't grasp your vision and needed constant oversight because they weren’t thinking strategically. Or maybe you ended up wasting hours micromanaging, often needing to jump on late-night calls across massive time zone differences to get alignment. And in the end, they delivered a sluggish app with a frustrating UI that didn’t come close to the solution you had envisioned. If any of that sounds familiar, you need to reach out to our sponsor - DevSquad. DevSquad provides an entire development team packed with top talent from Latin America. Your elite squad will include between 2 to 6 Full Stack Developers, a technical product manager, plus experts in product strategy, UI/UX design, DevOps, and QA - all working together to make your SaaS Product a success. You can ramp up an entire product team fast, in your timezone, and at rates 75% cheaper than a comparable US-based team. And with DevSquad, you pay month to month with no long-term contracts. Get the committed, responsive development team that your business deserves. Visit DevSquad.com/startups and get 10% off the first three months of your engagement. Topics we cover: 3:15 – How to introduce friends to entrepreneurship and bootstrapping 6:00 – When to focus on profit vs. top-line revenue 10:40 – Considerations for building, scaling, and differentiating an MVP 15:45 – Rare circumstances where you should lower prices 20:25 – Pursuing career moves vs. building on the side 23:43 – Managing cap tables and equity vesting Links from the Show: MicroConf Remote – Early Stage Saas Strategies TinySeed The Stair Step Method of Bootstrapping Start Small, Stay Small The SaaS Playbook MicroConf YouTube Channel: Building Your First SaaS: The Ultimate Crash Course SFTROU Greatest Hits Episode 222 | The Stair Step Approach to Launching Products What is a SAFE? If you have questions about starting or scaling a software business that you’d like for us to cover, please

Transcript

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0:00.0	Is your outsource development team dropping the ball?
0:05.4	Maybe you've worked with a team that just couldn't grasp your vision and needed constant
0:09.8	oversight because they weren't thinking strategically.
0:12.7	Or maybe you ended up wasting hours micromanaging, often needing to jump on late-night calls
0:17.2	across massive time zone differences to get alignment.
0:20.6	And in the end, they delivered
0:21.7	a sluggish app with a frustrating UI that didn't come close to the solution you had envisioned.
0:26.8	If any of that sounds familiar, you need to reach out to our sponsor. Dev Squad. DevSquad provides
0:31.9	an entire development team packed with top talent from Latin America. Your elite squad will
0:36.5	include between two to six full-stack
0:38.4	developers, a technical product manager, plus specialists in product strategy, UIUX design, DevOps,
0:44.9	and QA all working together to make your SaaS product a success. You can ramp up an entire product
0:50.5	team fast in your time zone, and it rates 75% cheaper than a comparable
0:55.3	U.S.-based team. And with DevS. Squad, you pay month to month with no long-term contracts.
1:00.5	Get the committed, responsive development team that your business deserves.
1:04.6	Visit devsquod.com slash startups and get 10% off for the first three months of your
1:09.8	engagement. That's devsquad.com slash startups.
1:14.9	I love the smell of startups in the morning.
1:17.2	You're listening to Startups for the rest of us.
1:19.0	I'm your host, Rob Walling.
1:20.4	Thank you if you responded to my tweet about episode 700.
1:25.4	It was very meaningful.
	...

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