SFN233: Scaling from One Customer to $26k MRR in 6 Months

SFN233: Scaling from One Customer to $26k MRR in 6 Months

 

Just six months ago, Rufus Casey had one customer for his software product – fast forward to today and he’s generating $26k in monthly recurring revenue. We dig in and share a case study of every step along the way.

 

In This Interview I Ask:

  • 1:05 - Why did Rufus join The Foundation?
  • 5:10 - Who was the first person to pay Rufus money?
  • 6:15 - $600 / month is a lot of money – what problem is Rufus solving to make it worth it?
  • 8:05  - Tell us about the pre-selling process.
  • 12:30 - When did the product go live?
  • 13:45 - How has Rufus been marketing the software and finding customers?
  • 16:55 - What are the most important lessons that Rufus has learned?
  • 18:15 - What’s been the most surprising thing?
  • 21:10 - What advice would Rufus give someone who is just starting out?

 

Case Study

  • Rufus decided to start a business in Washington’s legal cannabis market because it was new and interesting.
  • He started making idea extraction calls, but had a rocky start. He persisted, and each new connection made the process easier.
  • He asked simple questions: What are you frustrated with? What’s keeping you up at night? Where are the bottlenecks in your business? What do you need help with?
  • He identified the pain in the market (tracking inventory, product, and sales) and then mocked up a design of what the software might look like in a PowerPoint presentation.
  • Rufus changed the product based on customer feedback. “I would have built the wrong product if I had come up with the ideas. … Have the customer design the product for you.”
  • It was difficult to pre-sell this particular product in such a young industry, but he found ~60 people interested at trade shows.
  • Rufus found a developer to build the product, and then gave away 20% equity in the company so it didn’t cost anything to build.
  • After the product was built, Rufus shifted primarily into a marketing role. In practice, it’s pretty similar to idea extraction – cold calling, but with the added benefit of a pre-existing network for referrals.
  • The company is now at $26k MRR and growing 7% each week.
  • Looking forward, Rufus is adapting his software to work in other states so he can expand the market.

 

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