how my startup made $23,350/month (+97%) while I was in Colombia 🇨🇴

Summary

In this video, Bo shares an honest and detailed update on their entrepreneurial journey towards achieving $1M ARR. November marked a record-breaking month with a 38% MRR increase and $23,035 in revenue. Bo attributes this growth to a successful price increase, improved Google Ads campaigns, and seasonal traffic. However, challenges arose with a hiring mistake and compliance issues. Looking ahead to December, Bo focuses on resolving these problems, launching influencer marketing, and recharging with a trip to Antarctica. The video offers valuable insights into scaling a business, navigating setbacks, and maintaining work-life balance.

Takeaways

• 😀 Bo's startup reached a major milestone in November with $9,850 MRR, a 38% increase from the previous month, marking their best month ever.
• 😀 A significant factor in the growth was a price increase of 20-35% across subscription plans, with no drop in customer acquisition.
• 😀 Google Ads played a crucial role in the growth, with improved conversion rates from a new landing page and increased ad budgets.
• 😀 Seasonal traffic contributed to a boost in organic growth, as people searched more for Bo’s product and services during this time.
• 😀 The company has now achieved 11% of its $1M ARR goal, with a net revenue of $23,035 for the month after refunds and adjustments.
• 😀 Subscriber churn rate is slightly up to 6%, but remains within a manageable range, with plans to improve retention moving forward.
• 😀 The first employee hire didn’t work out, highlighting the importance of clear job descriptions and ensuring the right skill set for the role.
• 😀 Bo’s company faced challenges with compliance, as one financial institution flagged their address due to too many customers, requiring constant product adjustments.
• 😀 A memorable moment for Bo was meeting a customer in Medellín, who left a heartfelt testimonial, reinforcing why Bo does business: to solve problems and help people.
• 😀 For December, Bo plans to focus on solving product and compliance issues, scaling influencer marketing, preparing for the holiday season, and recharging by taking a trip to Antarctica.
• 😀 Personal reflections include balancing work with socializing, and the challenges of maintaining energy while traveling and engaging with people during busy work months.

Q & A

What was the most significant factor behind Bo’s business growth in November?

The most significant factor behind Bo's business growth in November was a price increase of 20-35% across subscription plans. Despite this hike, the business continued to attract the same or slightly more customers, indicating the success of the price adjustment.

How did Bo’s Google Ads campaign contribute to the success in November?

Bo's Google Ads campaign played a crucial role by launching a new landing page, which improved conversion rates from 30% to 100%. Additionally, increasing the ad budget helped bring in more customers, making Google Ads the second-largest acquisition channel for the business.

What was the subscriber churn rate in November, and how did Bo plan to address it?

The subscriber churn rate in November was slightly up to 6%, which is within the manageable range of 5-10%. Bo plans to focus on improving this rate in the future, though the current emphasis is on enhancing infrastructure and acquiring new customers.

What was the challenge Bo faced with the first employee hire in November?

The challenge Bo faced was that the first employee hire didn’t meet the required skill set for the expanded role. The employee struggled with basic computer tasks, leading Bo to realize the mistake of evolving the job description during the hiring process.

What product-related compliance issue did Bo's company encounter in November?

Bo's company faced a compliance issue when a bank flagged their provided residential address due to too many customers being associated with it. This is a recurring problem, and although it is stressful, Bo's team is experienced in solving such challenges.

How did meeting a customer in Medellín impact Bo’s motivation?

Meeting a customer in Medellín was a significant motivational moment for Bo. The customer expressed how much they loved the service and wished it had been available earlier to save more money. This feedback, along with a positive testimonial left the next day, reminded Bo why they are in business: to help people and solve their problems.

What are Bo's primary plans for December regarding the business?

In December, Bo plans to focus on solving the compliance issue with financial institutions, continue influencer outreach, launch a potential MVP for tax filing services, and recharge during the holiday season. Google Ads campaigns will also continue to be a key focus.

What personal goals does Bo have for balancing work and socializing?

Bo aims to find a better balance between work and socializing. In November, Bo realized they had sometimes over-socialized, which affected their energy and sleep. They are working on managing their time to ensure enough space for personal rest and reflection.

What personal experience did Bo highlight during their time in Medellín?

Bo highlighted a weekend road trip to Cocora Valley in Medellín, where they saw one of the tallest palm trees in the world and enjoyed a beautiful hike. Despite some lack of excitement about other nature spots, the trip was a memorable highlight.

What is Bo’s perspective on social media content during wellness events?

Bo expressed frustration with the trend of people using wellness events, such as ice baths, primarily for social media content. For Bo, the focus is on the personal experience—relaxing and connecting with oneself—rather than making videos or photos for content purposes.