Apr 5, 2016
Summary:
In this episode, Dave interviews David Cummings, and one of two founding partners of Pardot, a company that dedicated itself to redefining the way B2B marketing automation is handled. Listen in as Dave and David discuss the process of bootstrapping a SaaS juggernaut, the struggles of competing against VC money, and how to best handle the acquisition process.
Time Stamped Show Notes:
- 00:42 – Dave covers David’s background
- 01:49 – Started and sold Pardot (US$95 million cash)
- 03:25 – Dave’s introduction to entrepreneurship
- 04:30 – Statbook for baseball and softball statistics (1995)
- 05:45 – The ON start-up series
- 07:24 – David attended Duke University
- 07:57 – Why David went to college as opposed to sticking with his businesses
- 09:21 – The Hard Thing About Hard Things
- 11:02 – Making a product to update and change a website with ease
- 14:00 – David got in on the SaaS explosion at the ground floor
- 15:19 – In 2006, David had the idea for Pardot
- 17:11 – As the CEO, your job is to become LESS needed to the company—the more you’re needed, the more you’re doing wrong
- 18:37 – Find partners that complement (not replicate) your skillsets
- 19:53 – Coming to the realization that Pardot was a diamond in the rough
- 22:50 – By the time Pardot was sold, the company was averaging about $15K per customer per annum
- 25:12 – The value of having a passion for culture
- 25:50 – Be the best place to work, and the best place to be a customer
- 28:45 – Don’t use the word “value” use the meaning of “value”—actions are louder than words
- 31:20 – Culture and “schwag” are different—perks don’t create culture, they can help it, but they don’t create it
- 34:29 – Highlighting the “offer receiving” process
- 35:50 – Always use this line, “we’re not for sale, but what are you offering?”
- 37:12 – Walking through the acquisition process and valuation process
- 39:41 – No brokers, only an attorney—the David did the negotiation all on his own with his partner
- 42:27 – The deal is closed, the money is in the bank, the wire transfer is complete—but David can’t say a THING for 48 hours because the acquiring company is public
- 44:46 – Atlanta Tech Village
- 45:08 – AtlantaTechVillage.com
3 Key Points:
- Find business partners that complement your skills, not replicate them.
- “Schwag” and perks will not create a winning culture in your business—they can help amplify a winning culture, but they can’t create it.
- “We’re not for sale but what are you offering?”—Nine words you need to memorize in the even someone expresses interest in acquiring your business.
Resources Mentioned:
- Entrepreneur's Organization – The EO Network
- Atlanta Tech Village – Collaborative office space for startups in Atlanta
- The Hard Thing About Hard Things – A fantastic book recommended by both Dave and David
- Pardot – The crown jewel of David’s entrepreneurial accomplishments
- David Cummings – Today’s guest
Credits:
Show Notes provided by Mallard Creatives