Quick Way to Sell Your First Company For More Than $1m

SaaS Interviews with CEOs, Startups, Founders

Nathan Latka

Ceo, Entrepreneurs, Founders, Software, Business, Entrepreneurship, Saas, Startups

4.6 • 683 Ratings

🗓️ 19 January 2016

⏱️ 21 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Ep 121 Chad Wittman joins Nathan Latka. Chad sold EdgeRankChecker for about $3m and then founded Dolly, an app built to bring moving into the 21^st century. Listen as Chad talks about abandoning the “security” of a job, bootstrapping a start-up, and managing a business with partners.

Click here to join the top tribe and instantly learn how Nathan made his first $10k at 19 years old: http://nathanlatka.com/startertribelive

3 Key Points:

If you want to reap 100% of the rewards, you need to bootstrap your business.
The sharing economy has touched a variety of markets, but not every market—find your niche.
Valuations are insanely high right now.

Episode Notes:

01:02 – Nathan’s introduction to today’s show with Chad Wittman
01:25 – Edge Rank Checker
02:19 – Making $50-60K in the agency
03:00 – How Edge Rank Checker made money
03:30 – Launched in 2012 with a $30/month price point
04:22 – Two co-founders
05:40 – Within 2 months they were making $20K per month
08:20 — $60K a month at its peak before selling to Social Bakers
08:44 – Selling the technology but not the team
09:10 – Negotiating Sale Price
11:30 – 6 month earnout
11:55 – 75-25 cash-equity split
12:50 – Chad was paid out 100% b/c they were 100% bootstrapped
13:20 – MRR x $60k x 12 x 4
13:44 – The moving business digitized—Dolly
14:15 – The financial model of Dolly
15:00 – Valuations are high right now…some as high as $25X
16:05 – The sharing economy has touched a lot of form factors, but not the pack-up truck market
17:48 – The Famous Five

Resources Mentioned:

Growth Geeks – The way Nathan hires growth hackers on a per project basis for things like info graphics, blog posts, and other growth projects without hiring full time employees.
Edge Rank Checker – Chad Wittman’s original foray into entrepreneurship
Dolly—Chad’s new venture, an app for moving your stuff intelligently

Famous 5

Favorite Book?— Getting Real (I’m listening to How to Win Friends and Influence People for free using Audible while I travel for the holidays)
What CEO do you follow?— Elon Musk
What is your favorite online tool?— Slack
Do you get 8 hours of sleep?—Yes
If you could let your 20 year old self know one thing, what would it be?—Do not overvalue an idea

Listen to The Top if you want to hear from the worlds TOP entrepreneurs on how much they sold last month, how they are selling it, and what they are selling - 7 days a week in 20 minute interviews! Join the Top Tribe at http://NathanLatka.com/TheTop

The Top is FOR YOU if you are:

A STUDENT who wants to become the CEO of a $10m company in under 24 months (episode #4)

STUCK in the CORPORATE grind and looking to create a $10k/mo side business so you can quit (episode #7)

An influencer or BLOGGER who wants to make $27k/mo in monthly RECURRING revenue to have the life you want and full CONTROL (episode #1)

The Software as a Service (SaaS) entrepreneur who wants to grow to a $100m+ valuation (episode #14).

Your host, Nathan Latka is a 25 year old software entrepreneur who has driven over $4.5 million in revenue and built a 25 person team as he dropped out of school, raised $2.5million from a Forbes Billionaire, and attracted over 10,000 paying customers from 160+ different countries.

Oprah gets 60 minutes or more to make her guests comfortable to then ask tough questions. Nathan does it all in less than 15 minutes in this daily podcast that's like an audio version of Pat Flynn's monthly income report. Join the Top Tribe at http://NathanLatka.com/TheTop

Transcript

Click on a timestamp to play from that location

0:00.0	This is the top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base.
0:09.4	You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have.
0:16.1	I'm now at $20,000 per talk.
0:18.3	Five and six million.
0:19.3	He is hell bent on global domination.
0:21.2	We just broke our $100,000 unit sole mark.
0:23.9	And I'm your host, Nathan Latka.
0:27.6	Okay, Top Tribe, this week's winner of the $100 is Zach Ferran.
0:32.7	He's a 22-year-old Apple employee, and he's listening to the show and loving it.
0:38.1	For your chance to win 100 bucks every Monday, simply subscribe to the podcast on iTunes now
0:43.2	and then text the word Nathan to 3344 to prove that you did it to enter.
0:50.0	Coming up tomorrow morning, guys, we hear from Jury Bolander.
0:53.5	His healthcare startup raised $420,000 to handle your blood.
0:59.5	Okay, Top Tribe, good morning.
1:01.3	So many of you are talking about yesterday's episode,
1:04.0	and you're also going to be talking about this one with Chad Whitman.
1:07.6	Chad loves building things that matter.
1:10.1	He's the co-founder and VP of product at Dolly,
1:12.7	and he was former founder of EdgeRank Checker, which was acquired by Social Bakers. Chad,
1:18.2	are you ready to take us to the top? Yes, I am. Let's do it. Okay, tell me first about
1:22.2	Edge Rank Checker. What year did you start it in, and why did you create it? I think we started
1:26.6	at Edring Checker in about 2012.
	...

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