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Bootstrapping a SaaS ecommerce startup
Presentation by Charles Brun for the CCE

@_charlesbrun
@_charlesbrun
Personalized paper an online catalogs.
@mtl_ecommerce
facebook.com/mtlecommerce
meetup.com/mtlecommerce
mtlecommerce.com
@_charlesbrun
Social Media Email Offline
@_charlesbrun
Now In Store enables ecommerce by driving traffic to online stores
SaaS = Software as a Service
@_charlesbrun
Traditional software model
Perpetual license
upfront
Annual maintenance
fee
Upgrades
C
@_charlesbrun
@_charlesbrun
Traditional SaaS required deep pockets to stay alive
• Almost all costs are
incurred at the
beginning.
• High cost because
custom-built
solutions and large
clients
• Profits are far into
the future
@_charlesbrun
The consumerization of IT changed everything
@_charlesbrun
The propensity for users’ experiences with technology as
consumers to impact their expectations regarding their
technology experiences at work.
• Business Apps that are built like consumer apps

• Single purpose apps (unbundling)

• No customization (one size fits all)

• SMB oriented
A new wave of SaaS
• Lower setup cost

• Lower maintenance cost (single version)

• Easier to bootstrap!
5 rules to bootstrap a SaaS
ecommerce Startup
• Keep costs as low as possible

• Team should be able to do everything

• Don’t overbuild: eliminate waste by
talking to your customers

• 80-20 rule: 80% of your customers
use 20% of a product’s features
Rule #1: Stay Lean
YOU MEAN TO TELL ME
THAT I NEED TO TALK TO
MY CUSTOMERS?
@_charlesbrun
Rule #2: Iterate Fast
• Build MVP

• Ship frequently and learn fast (time
= $$$)

• Measure your results to get to
product-market fit
@_charlesbrun
Rule #3: Assess value prop
You need 2 million
customers to build $100
Million business
charging $5/month
• Put a price on it as early as possible!

• SaaS SMB is hard because you have
a lower ARPU

• Make sure ARPU is above $20 /
month

• Be weary if your revenue ceiling is
$100 / month

• You need tremendous volume to
become a rockstar
@_charlesbrun
Rule #4: Focus on churn
• Churn Rate = The percentage of
subscribers to a service that
discontinue their subscription to that
service in a given time period

• In SaaS, churn rate needs to be at
5% or lower (in SMB world)

• Churn is the single biggest
determinant of a business' capital
efficiency and how quickly it can
grow
@_charlesbrun
5% churn rate
2.5% churn rate
$76,505 MRR
$139,045 MRR
Comparing churn rates
@_charlesbrun
Rule #5: CAC < 1/3 LTV
• You can only be profitable with scale

• Once you control churn and the unit
economics make sense expand sales

• Make sure CAC < 1/3 LTV

@_charlesbrun
@_charlesbrun
A startup is not a rocket-ship, it’s a hot-air balloon
Bootstrapping a SaaS ecommerce startup
Thanks!
@_charlesbrun
Presentation by Charles Brun for the CCE

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How To Bootstrap a SaaS Ecommerce Startup

  • 1. Bootstrapping a SaaS ecommerce startup Presentation by Charles Brun for the CCE @_charlesbrun
  • 5. Social Media Email Offline @_charlesbrun Now In Store enables ecommerce by driving traffic to online stores
  • 6. SaaS = Software as a Service @_charlesbrun
  • 7. Traditional software model Perpetual license upfront Annual maintenance fee Upgrades C @_charlesbrun
  • 9. Traditional SaaS required deep pockets to stay alive • Almost all costs are incurred at the beginning. • High cost because custom-built solutions and large clients • Profits are far into the future @_charlesbrun
  • 10. The consumerization of IT changed everything @_charlesbrun The propensity for users’ experiences with technology as consumers to impact their expectations regarding their technology experiences at work.
  • 11. • Business Apps that are built like consumer apps • Single purpose apps (unbundling) • No customization (one size fits all) • SMB oriented A new wave of SaaS • Lower setup cost • Lower maintenance cost (single version) • Easier to bootstrap!
  • 12. 5 rules to bootstrap a SaaS ecommerce Startup
  • 13. • Keep costs as low as possible • Team should be able to do everything • Don’t overbuild: eliminate waste by talking to your customers • 80-20 rule: 80% of your customers use 20% of a product’s features Rule #1: Stay Lean YOU MEAN TO TELL ME THAT I NEED TO TALK TO MY CUSTOMERS? @_charlesbrun
  • 14. Rule #2: Iterate Fast • Build MVP • Ship frequently and learn fast (time = $$$) • Measure your results to get to product-market fit @_charlesbrun
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  • 16. Rule #3: Assess value prop You need 2 million customers to build $100 Million business charging $5/month • Put a price on it as early as possible! • SaaS SMB is hard because you have a lower ARPU • Make sure ARPU is above $20 / month • Be weary if your revenue ceiling is $100 / month • You need tremendous volume to become a rockstar @_charlesbrun
  • 17. Rule #4: Focus on churn • Churn Rate = The percentage of subscribers to a service that discontinue their subscription to that service in a given time period • In SaaS, churn rate needs to be at 5% or lower (in SMB world) • Churn is the single biggest determinant of a business' capital efficiency and how quickly it can grow @_charlesbrun
  • 18. 5% churn rate 2.5% churn rate $76,505 MRR $139,045 MRR Comparing churn rates @_charlesbrun
  • 19. Rule #5: CAC < 1/3 LTV • You can only be profitable with scale • Once you control churn and the unit economics make sense expand sales • Make sure CAC < 1/3 LTV @_charlesbrun
  • 20. @_charlesbrun A startup is not a rocket-ship, it’s a hot-air balloon
  • 21. Bootstrapping a SaaS ecommerce startup Thanks! @_charlesbrun Presentation by Charles Brun for the CCE