Nathan Latka  came on the show today, and shared quite a few golden nuggets as well showed us his ambitions moving into the future.  He’s got a business podcast – called The Top Entrerprenuers. He tried to buy success magazine for $5m. Sold first business, Heyo, after raising $2.5m and hitting $5m in revenue in Feb 2016. He then Acquired company another company called send later.

What you'll learn:

* How to go through an acquisition

* How to prepare for an acquisition

* Strategies to get the most out of an acquisition

* What 5 words Nathan Latka used during his acquistion

* How Nathan grew Heyo to 10,000 paying subscribers and got it acquired

* Expanding and scaling, vision into the future

And much more!

Contact:

Nathan Latka

 

David Aladdin: Welcome to the show Nathan,

Nathan Latka: David, what’s up Man, I am excited to be here. I told you better be comfortable on the show so let’s have some fun.

David Aladdin: You are nervous?

Nathan Latka: No, Nathan Latka never gets nervous

David Aladdin: David Aladdin never gets nervous. Alright! Can you take us to the beginning before things got crazy? Let’s hear more about you.

Nathan Latka:That’s a big question, I will keep it very brief, because time is valuable because 19 years old, studying architecture in Virginia Tech, quickly heard fifth years complaining that we are not getting jobs so I said screw, I am not putting myself five years, spending ridiculous amount of money on college education and not having a guaranteed job. I stayed up at my dorm room, rock at my girlfriend Christmas boxers and pre sold 73 grand worth of Facebook fan page. So my PayPal account was just exploding and eventually I decided to drop out, grew the business to about 30 grand a month in recurring revenue.

This was a SaaS business, Software as a Service, margins were through the roof, way higher than the most Amazon obviously products because there was no cost of goods sold outside of very little server cost. Then it kept growing to about 90,000 a month through recurring revenue. We then raised 2 million dollars from a Forbes billionaire named RJ Kirk at pre-money evaluation of 8.5 million dollars which brought our funding to about a total of 2.5 million. A lot of our angel investors were really the smartest in the world, I am talking about folks like David O’Connor, TechStar, many, many say the best investors in the world.

So we grew that to about 10,000 monthly paying customers, 5 million in revenue, 25 employees and sold that in February in 2016 in this year. So I got to tell you it is big, it was exciting and that’s kind of story in a nut shell.

David Aladdin:Let’s go a bit deeper, we have got a small amount of time, about thirty minutes to get everything understood. So you got this business and you grew it to 10,000 users. Even before how did you even get to the first 1000 users?

Nathan Latka:You know I make this clarification, many people lie, how many customers do they have and they say 10,000 and they lie, there are too many users they have which many times most are free, like we have 10,000 paying customers. People give us their credit card that we are billing every month, none of this baloney about users verses customers; 10,000 paying customers.

David Aladdin: And currently I think it’s 29.99 a month, what were you guys charging at the time, was it the same?

Nathan Latka: Average revenue per user per month ranged between $30 to $300.

David Aladdin: And 300 was like the enterprise?

Nathan Latka: That was the agency plan, enterprise.

David Aladdin: Alright so that’s pretty awesome,