Mark Douglas · LCPTracker
Published September 6, 2024Explore the lesson. Sign in to access the slide download.
Topics covered: Really super excited to be here I am a…; Is 117% so if I had a th000 contracts…; Between May and June we get together at the….
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“um really super excited to be here I am a bootstrap company doing 32 million this year and I've taken no debt no equity and uh what I did is I put this presentation together oh I guess I got to switch it here my name is Mark Douglas LCB tracker um but we are performing at really excellent high levels uh what most firms would be rated at I'm going to go”
“is 117% so if I had a th000 contracts the a year later I have 900 and I'm you'd think I'd only be at 90% of the revenue but those 90 contracts are still producing 117% of the revenue I was 12 months ago so that's through and I'll I'll show you how that works out so over the course of um and then you got to add the AR in”
“between May and June we get together at the board and the the the SE Suite we decide what are our top three priorities that's it three for the year next year and we set those out and then we we have the SE Suite go in or your key management go in and do um a kind of a bottomup approach okay if these are your three top priorities how am I going to support those and then we have a budgeting process in August September”
“that get HR on it make make sure we're moving to uh um bring that back up above the goal that they had and then it all lines up so nicely um and then the third and final section is some of the other things that you have to do in order to make this happen backup house systems and then I'll talk about value and annual cycle so we took a really strong”
“Rule of 40 Growth plus EBITA is 40% Growth rate and free cash flow rate as a percentage of revenue.”
“Benchmarks vs.Industry We retained almost 89% of our existing base past 12 months NRR 5 pts above the industry’s 75th percentile LTM and GRR is 2 & 1 pts above median benchmark LCP 12m LCP 12m 75% SaaS Co. 75% SaaS Co. Mean SaaS Co. Mean SaaS Co. 25% SaaS Co. 25% SaaS Co.”
“Financial Planning Process (2)”
“RepeatableProcesses Detailed P&L Review with CFO Retrospective & Forecasting Calls New Hire Approval Project Spending Monthly Business Reviews with each C-Suite member to discuss wins & losses:”
“Value Creation (3) Your entire staff must be bought into caring for your clients & users Long-term relationships You must truly care Require that every interaction with clients creates value.”
Video
Why My Bootstrapped Company Ranks At the Top of Every Financial Metric in the SaaS Industry - Slide Deck
It all started in 2001, when LCPtracker CEO Mark Douglas envisioned a Software-as-a-Service (SaaS) solution geared towards prevailing wage compliance for K-12 school construction. After two years of development with just a three-person team, LCPtracker Professional was officially launched. By 2006, their client roster grew nationally, expanding beyond K-12 schools and gaining clients such as cities and transit agencies. Mark has a plan to eliminate poverty with ‘15 for the 15', and is committed to using technology to transform lives while building better communities.
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SaaSOpen, September 2024 The Blueprint for Success: Why Our Bootstrapped SaaS Firm Leads Every Financial Metric Mark Douglas CEO, LCPTracker
Over the next 20 minutes I’m going to show you Benchmark Results Rule of 40 Lifetime Value of a Customer ARR Growth & Benchmarks vs Industry Financial Planning Building Scalability Goal Setting Objectives & Key Results Repeatable Processes Back-of-House Systems Integration Value to Staff & Clients Annual Planning Cycle
Vision & Mission
Rule of 40 Lifetime Value of a Customer ARR Growth & Benchmarks vs Industry Let’s jump into Section 1 I’m going to show you ARR METRICS CUSTOMER LIFETIME ARR GROWTH
Rule of 40 Growth plus EBITA is 40% Growth rate and free cash flow rate as a percentage of revenue.
Benchmarks vs.Industry We retained almost 89% of our existing base past 12 months NRR 5 pts above the industry’s 75th percentile LTM and GRR is 2 & 1 pts above median benchmark LCP 12m LCP 12m 75% SaaS Co. 75% SaaS Co. Mean SaaS Co. Mean SaaS Co. 25% SaaS Co. 25% SaaS Co.
ARR Growth
6 Average Year Rule of “40” Revenue & EBIDTA
Average Customer Lifetime (1) Average LTM NRR and GRR is 118% and 89%, respectively
Goal Setting Objectives & Key Results Repeatable Processes Let’s jump into Section 2 I’m going to show you FINANCIAL PLANNING ANNUAL PLANNING MONTHLY ACCOUNTABILITY
Financial Planning Process (2)
RepeatableProcesses Detailed P&L Review with CFO Retrospective & Forecasting Calls New Hire Approval Project Spending Monthly Business Reviews with each C-Suite member to discuss wins & losses:
Back-of-House Systems Integration Value to Staff & Clients Annual Planning Cycle Let’s jump into Section 3 I’m going to show you SYSTEMS INTEGRATION HIRING PROCESSES
Systems Integration Senior team call every 2 weeks Review it by customer segments Look at open, closed, hold, new client, rollover Dashboards we review every 30 days with all managers & direct reports
Staff & Clients Hire slightly ahead of the need Promote from within Hire outside functional experts to fill organizational gaps Retention Rates Industry 14% LCPtracker 3-7% annual Recognize the skill sets and gifts of all Staff & empower leaders to develop plans, processes, and strategies to organize staff by skill sets.
Value Creation (3) Your entire staff must be bought into caring for your clients & users Long-term relationships You must truly care Require that every interaction with clients creates value.
Annual Planning Cycle Milestones Monthly Schedule Deliverables Followed by all departments and a corporate check-in to verify results Milestones, Monthly Schedule & Deliverables
Over the last 20 minutes, I showed you: … with real examples! Benchmark Results Rule of 40 Lifetime Value of a Customer ARR Growth & Benchmarks vs Industry Financial Planning Building Scalability Goal Setting Objectives & Key Results Repeatable Processes Back-of-House Systems Integration Value to Staff & Clients Annual Planning Cycle
SaaSOpen, September 2024 Thank you! [redacted email] Mark Douglas CEO, LCPTracker