Does Revenue Per Employee Matter – Hustle Con Takeaways – Bump Boxes
Hey, all. It was great catching up at Hustle Con last week, for those of you who made it. Thanks for sampling our cricket milkshakes (they weren’t that bad, were they?) and for all your feedback on Trends.
Quick programming note: So we can relax for the holidays -- and give your inboxes a break -- we’re only planning to send 2 newsletters the rest of the year. Look for us on Friday, Dec. 20, and Tuesday, Dec. 31.
Until then, we’d love to see Torontonians in the 6ix on Dec. 19, for our next meetup. Join the event here or send [email protected] an email if you’d like to kick it with us.
We’d also welcome your input on a Trends roadmap to help guide our product and improve your experience. More details below.
Quick snapshots from across the internet of potential trends before they happen.
Light therapy lamp
Cue the Ned Stark meme: Winter is coming. Light therapy lamps help people who suffer from seasonal affective disorder cope with the symptoms. That’s why search interest increases in winter months.
What’s next: Interest in light therapy has been particularly strong as the lamps become better known to the public and as more people realize the debilitating effects of seasonal affective disorder.
The light therapy market is expected to grow at a ~5% CAGR from about $800m in global revenue in 2018, to more than $1B in 2025. With prescription drugs increasingly under fire for their price and dangers, light therapy will be recognized more and more as an alternative.
Halodoc -- Indonesia’s health-tech platform -- is a marriage of two powerful concepts: connecting patients with doctors and connecting patients with their meds, all through a single app. Doctors on Demand, meet your sister Pharmacy on Demand.
Does it work? 2m users think so, along with the 19k licensed doctors and 1k pharmacies that have hopped on the halo train.
What’s next? Technology is reshaping the way we engage with typically high-friction experiences like visits to the doc. Shorter wait times? Cashless appointments? Predictive checkups? This isn’t Theranos, but technology might just “change everything.”
People are increasingly concerned with what they’re putting in their bodies. And unsurprisingly, the bodies of mini them. Bump Boxes is a subscription service gaining traction that helps mindful moms navigate pregnancy and beyond.
What’s next? Consider any “life pivot” that people go through requiring reorientation. What does that person need to succeed? Consider whether you can offer this to them easily, instead of each individual doing their own research. Examples:
Going back to school
Becoming a father
Quitting your first job
Becoming a vegetarian
Moving to a new city
Getting married with little cash
Graduating a bootcamp
Create a subscription service (it doesn’t necessarily have to be a box -- information is just as valuable) tailored to those individuals.
PS: Bump Boxes was one of our recent Hustle small business features, among the 700+ companies in our database. Subscription boxes were also the winner of our most recent Trends Set, so look for a deep dive on them soon.
Revenue per Employee: When and Where it Matters
Revenue per employee is often a hot topic when unicorns become recognized as unicorns or after big sales (example: Kylie Jenner selling a controlling interest in her cosmetics company, which had 12 employees, for $600m).
But how much should small business owners care about revenue per employee? We explored the numbers to find out.
Based on our analysis of 500+ businesses from the Trends Guide to Small Business Growth, we find that new ventures in the retail, consumer goods, and apparel & fashion space can run lean and are the most competitive with public comps on an RPE basis.
Companies in the S&P 500 have a wide range of RPEs, from Walmart ($237k revenue per employee) to Exxon ($3.7m).
RPE is an easy metric to calculate and understand but conveys less information as a company grows. Better metrics include margin structure and growth.
Metrics to aim for when building a unicorn. For marketplace companies: CAC payback less than 6 months, 3x annual user growth, unlock new supply. For SaaS: Growing 100% after $10m ARR, 150% net revenue retention, 50+ NPS.
What’s the most interesting new app in the past six months? (Twitter). Spoiler: People mostly love note-taking and fitness apps.
How operators get their wings in Silicon Valley (BrianneKimmel.com). While there’s no single path to startup investing, The Angel J-Curve is a guiding framework to better understand the opportunities available for operators in Silicon Valley based on your time and revenue in the ecosystem.
Tasty has 100m+ followers on Facebook, sold 800k copies of its cookbooks. (DigiDay) If there’s one thing to learn from Tasty’s success, it’s how to apply this multi-revenue model to its other brands.
Coca-Cola is capitalizing on the multibillion-dollar sparkling water industry, but its CEO says it ‘should have done it a lot sooner.’ (Business Insider). "As the largest and fastest-growing part of the water business, mainstream flavored sparkling water is a segment we know we must double-down on," said Coke VP Celina Li. Interested in this space? We've covered other food and beverage opportunities here.
VICE is betting on deep-dive podcasts that mirror its video-reporting style (Business Insider). Listeners seem to love deep-dive podcasts. But with advertising as the main source of revenue, we aren't bullish. However, there's opportunity with paid subscriptions. Learn more here and here.
How the Coolest Cooler went from one of the most successful Kickstarters ever to the site's 'biggest disaster' (Business Insider). Downside: $13m worth of customers aren't getting their cooler. Upside: $13m worth of customers want a cooler and have an unmet need.
Exclusive Access: My First Million + Hustle Con videos
We can all remember making our first million. Oh wait, still waiting on that one.
We’ve transcribed the first 20 episodes of My First Million -- the podcast that explores how entrepreneurs went from 0 to 1… million. You can find the transcripts over in the Media section of the Trends website, where we’ve also uploaded two exclusive recordings from last week’s Hustle Con:
We’ll be uploading an additional 12+ hours of recordings in the coming weeks, as a Trends exclusive.
Speaking of Hustle Con…
Would you like advice from Pandora co-founder Tim Westergren? How about ThirdLove’s Heidi Zak (pictured above right, with our Steph Smith)? They spoke at our popular gathering of founders and investors last week, sharing tips on starting and growing businesses.
We’ve compiled the best advice in one post. It includes:
What you should study to become an entrepreneur
Where you should advertise as Facebook gets pricier
When to know it’s time to sell your company
One of our favorite pieces of advice: When you’re starting out, treat meetings with manufacturers the same way you would a meeting with an investor. Manufacturers can be just as difficult to convince of your company’s value. “You need your game face on,” Zak says.
Each week, we’re working to make Trends harder, better, faster, stronger . Okay, maybe just better.
We want you to be a part of that process. We’ve tossed a few ideas out there, but a team of 3 can’t read the minds of thousands. Add your ideas, and most importantly… upvote the ideas that you want to see turned into reality.