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Founder conversationLeader $5m+

Bootstrapped to $5m

The five phases of a business operating system, how community drove growth, and the metrics investors cared about

Mark Abbott · Ninety.io

Published September 1, 2022
About this resource

Mark Abbott, CEO of Ninety.io, shares:

- 5 Phases of a Business Operating System

- How we used community to grow fast

- Top metrics VC cared about

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What you’ll learn

Mark Abbott describes building Ninety through a service-led go-to-market, high-trust customer relationships, rapid support, disciplined payback, and fractional specialist teams.

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Key moments

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Serve rather than sell

“that you come to a holistic operating system because some of the systems don't have everything in it so as an example eos which i'm very close to really doesn't have anything about figuring out how to build value right because the reality is in our industry right we're not focused at least lots of us aren't focused on ebitda we're focused on growing revenues right and so the value of the business is based upon the revenues not the ebitda so get your arms around how you create value and then the last type of operating system is actually what we're doing we're creating”

Build high-trust relationships

“all right so talked about the book so here you can go back to the book for a second yeah so so now we'll go back to that slide so do you guys do you own this so i do not own it yeah so how does that work yeah so we just pay a license fee to eos to use the terms so we pay 10 of our revenues to eos to be able to use their trademark terms in our software we got about seven trademark terms so we're paying almost a hundred thousand dollars a month for seven trademark terms right now cool huh should we talk more”

Deliver rapid support

“love that right we want to get better and better and better but uh yeah it's the ui is really super simple people can get up and running on it and we start doing demos like oh i get it's just all right there boom you look click on it and it's obvious it's a meeting tool it's an accountability chart it's all obvious stuff is that cool yes you're up now to like 4 million in revenue and the next slide you're going to talk about when insight reached out like what do they think about so take us through that journey yep cool all right so going up went the wrong direction so”

Manage payback

“than seven percent um annualized and that includes you know we have a lot of small companies you can get into our software for 14 bucks right so there's a lot of small companies in there there's a lot of one or two offs um but uh but generally speaking that's uh you know obviously less than close to it's it's been averaging less than half a percent per month for years um so why why did we raise the money um i've self-funded it for the first you know three four years um i didn't want to i could do that”

Use fractional talent

“thanks um what they didn't see was they fell in love with our numbers but they never really wanted to understand our vision and where we wanted to go until after they got in there and now they see it and now they believe in it and now they're now they're really you know they're stepping up and they're giving us a lot of support but it was kind of funny because it's like good news bad news right it was like oh man we love your numbers these are amazing let's just do it and it's like wait a second where you guys”

The operating playbook

“# Coaches The playbook we used… What you’ll learn over next 20 minutes # Books in market Ratio Companies Coached vs. Aware Get 3+ seats landed during trial World class chat Educate to get tool adopted 5-8% MoM revenue growth CAC payback under 3 months User churn <7%/yr. 135% Net Revenue Retention COMMUNITY ACTIVATION TOP METRICS”

Using community to grow ARR

“1) How we used community to grow fast We don’t sell, we serve Books in market Coaches Ratio of companies coached vs. companies aware”

Activating three users in trial

“How we active trials to drive conversions Focus on getting to a 3+ initial users before end of trial # of initial users”

Fast, knowledgeable chat support

“Chat helps us activate <5 minute response time Real people responding Support staff knows product well”

The metrics investors cared about

“3) Top metrics VC cared about Multi- Billion dollar market 5-8% MoM revenue growth CAC Payback under 3 months User churn <7%. 135% Net Dollar Retention”

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Resource files

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  • Email from Insight Partners (Slide 15)

  • Bootstrapped to $5m - Slide Deck

About the speaker
Mark Abbott

Mark Abbott

Founder and CEO · Ninety.io

Mark Abbott is the founder of Ninety.io and a sought-after business leader, writer, and executive team coach. With nearly four decades of experience with early-stage, small and mid-sized companies as a lender, investor and business builder, his passion centers on helping people build extraordinarily productive, humane, and resilient companies.

Company revenue
$7.9M
Team size
200

Slide text

Find a passage in the slides and open the original deck.

28 passages

Ninety’s path to $5 million

  1. March 2022 March 2022 | Mark Abbott, CEO Ninety.io Mark Abbott CEO of Ninety Bootstrapped to $5m … then Insight Venture Partners reached out

  2. Leading Provider of “Company Building Systems” USERS 1,200 3,200 8,750 28,750 62,000 CUSTOMERS 112 275 769 2,266 4,726 CONV. % 9.3% 8.6% 8.8% 7.9% 7.6%

  3. 5 Phases of a Business Operating System

The growth playbook

  1. # Coaches The playbook we used… What you’ll learn over next 20 minutes # Books in market Ratio Companies Coached vs. Aware Get 3+ seats landed during trial World class chat Educate to get tool adopted 5-8% MoM revenue growth CAC payback under 3 months User churn <7%/yr. 135% Net Revenue Retention COMMUNITY ACTIVATION TOP METRICS

Community-driven growth

  1. 1) How we used community to grow fast We don’t sell, we serve Books in market Coaches Ratio of companies coached vs. companies aware

  2. How we used a community to grow ARR faster Number of Coaches

  3. How we used a community to grow ARR faster Number of Books in Market << Dozens of other great company building books

  4. How we used a community to grow ARR faster Non-Coached Companies Net New Client Companies

Trial activation and support

  1. 2) How we activate 3+ users before end of trial World class chat Expand use of tools

  2. How we active trials to drive conversions Focus on getting to a 3+ initial users before end of trial # of initial users

  3. Chat helps us activate <5 minute response time Real people responding Support staff knows product well

  4. Feedback Tool First Action <1% churn once feedback tool used Webinars In app messaging

Metrics and the decision to raise

  1. 3) Top metrics VC cared about Multi- Billion dollar market 5-8% MoM revenue growth CAC Payback under 3 months User churn <7%. 135% Net Dollar Retention

  2. Ninety.io Revenue Growth

  3. Ninety.io Revenue Growth The Insight Partners email.. Why we decided to take the call AUG 2021

  4. The top 3 metrics Insight Ventures cared about during the fundraise Multi-Billion Dollar Market

  5. 5-8% month over month MRR growth (200% annualized) with NRR of 135%

  6. CAC Payback of 3 months

  7. Paying User Churn <7% annualized

  8. I predominantly self-funded Only Full time employee to begin with was Head of Client Success All other heads were fractional, as was I From Bootstrap to Raise and Why

  9. Marketing Coach Support Data Engineering Finance Talent Think Fractional “Heads” for these:

  10. Pursued by long list of well known VC’s Didn’t Plan to raise until early 2022 Didn’t want to sell more then 20% Insight gave us forward credit given the consistency of our growth in: Paying companies Paying Users MRR Churn Not interested in Raising Capital Pre $10 million in ARR

  11. Didn’t Want VC Before $10m ARR Long list of VC’s chased us Didn’t want to sell more than 20% equity Never created a pitch book

  12. “Ninety demonstrates best-in-class SaaS KPIs across the board for the SMB market.” Insight Partners

  13. Insight fell in love with our numbers but only after its investment did it fully appreciate how powerful and necessary what we call a Great Company Building System is in what we call “The New Age of Work.” Bonus Share: What Insight Didn’t See but Now Does

  14. Ninety.io Revenue Growth

  15. # Coaches In summary, I just showed you … our full playbook # Books in market Ratio Companies Coached vs. Aware Get 3+ seats landed during trial World class chat Educate to get tool adopted 5-8% MoM revenue growth CAC payback under 3 months Logo churn <7%/yr. 135% Net Revenue Retention COMMUNITY ACTIVATION TOP METRICS

  16. March 2022 | Mark Abbott, CEO of Ninety.io Mark Abbott CEO of Ninety