ProjectionHub helps founders create financial projections to secure funding from investors and lenders.
📈 Monthly revenue: $30,000
📈 Net profit: 10%
📈 Funding: $0 outside investment, self-funded
📈 Initial cost/investment to start the company: $200,000
📈 Number of team members: 3
📈 Started: April 2012
4 strategies that have worked to attract and retain customers?
✅ Unique Content Creation + SEO – We write detailed blog posts to help answer founder’s key startup finance questions. Make the up-front investment in great content and SEO best practices, and in the long run Google can reward that with free organic traffic unlike any other strategy.
✅ Partnerships with Pitch Deck Designers – We found pitch deck designers and consultants to be great referral partners. When a founder is looking to raise capital they typically need a pitch deck and a financial model. Our partners are designers and story tellers, not accountants, so many pitch deck consultants send their clients to us to help with the financial model.
✅ Free Spreadsheet Tools – We sell premium financial projection templates, but we have found that providing some useful free spreadsheet tools like our Airbnb Cash Flow Calculator is a great way to acquire leads that may need a full financial model in the future.
✅ Loom for Customer Service – We use Loom to provide customer service. When a customer has a question about a spreadsheet, they can email us a question and their file, and we record a screenshare Loom video to answer their question and demonstrate how to use the template. Often, our customers are blown away by this level of service.
3-4 things that haven’t worked (or didn’t work as well) when it comes to growing the company?
❌ SaaS Product – It turns out founders need projections at a specific point in time when fundraising, not on an ongoing basis, so they shouldn’t need to pay monthly for a SaaS tool. Also, Excel is still pretty great for financial modeling, so after years of trying to get a SaaS tool to work, we pivoted to creating great, custom, Excel based financial models that we sell for a 1 time fee and our business took off.
❌ Google Ads – We have tried to make Google Ads work for years and we always just breakeven. Maybe our lifetime customer value just isn’t high enough to make Google Ads work.
❌ Youtube Channel – Youtube has actually been working pretty well bringing in about 20% of our sales each month, but I have been surprised how hard it has been to get real traction with Youtube. Maybe videos on financial modeling for startups just isn’t that exciting haha!
Through starting & growing the business, what have been the 3 key lessons that have possibly changed the trajectory of the company?