Cents · B2B · software for laundromats
Aim for $1M of revenue per employee and keep the team small
~$750K revenue per employee, 20%+ EBITDA margin, 98% employee retention
What they did
What happened
- Stage
- scale
In their words
How Does Laundry Software Make $60M a Year?
Nathan LatkaOkay, well, I'll give you even more [laughs] I'll do I'll give you even more credit then, right? 60 million divided by 80, I think, is about 750,000 of revenue per employee, which is world-class, right? How are you doing so much with so little, and were you profitable last year?
Alex JekowskyYeah, I mean we're we're operating at at uh above 20% EBITDA margin, so we like to push our team. One of our one of our executives, uh Nick D'Innocenzo on our sales side, he has a great quote I love using, which is, you know, "People grow linearly, and businesses grow exponentially, and we've had a really good time having our people grow exponentially uh alongside it." And I Sometimes I look at companies with hundreds of employees, and I don't even know what they do all day. And I think people You know, we have the the best metric outside of customer retention is 98% employee retention. Uh I've only lost I think three, maybe four employees ever that make over uh 100 grand. And so, I think it's a culture that embraces failure as an opportunity to succeed and grow, um and that pushes that level of, I think, culture, connectivity, because we're all in the shit together kind of thing. But we'll never be happy until we at least hit a million of revenue for everyone headcount. That is [Host chuckles] That's the benchmark.
Nathan LatkaSo, if someone's thinking, "Wow, 20% EBITDA profit, you know, profits in 2025 on 60 million, why would he go out and do the 140 million Series C? What was your thinking?"
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More from this episode
- Sign a 73-store operator as your first customer and build with themGot full access to their stores and back office; product a bit overbuilt but solid
- Walk into laundromats and call them, pitching a no-labor delivery add-on firstGrew to about 80 stores and ~$700K revenue in 2021
- Sell your own payment hardware at a profit, with software and payments attached~$140M a month in payments; 200-250K devices installed; 99% customer retention
- Buy a hardware company when building your own hardware gets too hardRevenue went from $6M to $36M the year of the deal
- Raise at a price investors can 4-6x, and turn down higher offersRaised $140M at 10-20x revenue while profitable; guest says exit options stay open
- Set aside $30M of a funding round to buy shares from employees$30M tender inside a $140M round; employee retention 98%
Tags: lean-team, revenue-per-employee, efficiency