Brian and Scottie Elliott, the dynamic duo behind Gather, share their journey in transitioning their interior design app upmarket. They discuss hiring strategies, emphasizing the shift from task-based to project-based hiring, which enhances operational efficiency. The couple highlights the importance of focusing on customer success over mere revenue metrics. They also candidly reflect on the emotional challenges of losing a major enterprise deal, revealing insights into resilience and the need to understand customer feedback better.
Gather is strategically moving upmarket to capitalize on outdated higher-end products, aiming for increased average revenue and reduced churn.
The co-founders plan to enhance operational efficiency by transitioning from task-based to project-based hires, focusing on specialized expertise.
Deep dives
Strategic Shift to Upmarket
Gather is transitioning its focus to serving an upmarket clientele, recognizing that the lower end of their market is saturated with venture-backed startups. The co-founders, Brian and Scotty, see significant opportunities in this new segment, as it could lead to increased average revenue per customer and reduced churn rates. They also noted that many existing products at the higher end are outdated and lack innovation, which creates a potential opening for their service. This strategic move is not just a shift in customer base but a comprehensive evaluation of their business model and market positioning.
Hiring to Enhance Expertise
Gather plans to expand its team with three new hires to bolster its operational capabilities and target marketing efforts effectively. They aim to bring in a lead generator, a virtual assistant, and an industry expert who can contribute to community outreach and refine their messaging. This shift from task-based hires to project-based resources marks a significant evolution in their operational strategy, allowing them to leverage specialized knowledge for better results. By recruiting individuals who excel in their areas of expertise, Brian and Scotty intend to enhance the overall performance and market appeal of their product.
Navigating Sales Cycles and Setbacks
The journey toward acquiring larger contracts has highlighted the challenges of longer sales cycles and the potential for disappointment. A recent enterprise deal appeared promising but was reduced to a smaller commitment due to perceived value issues, showcasing the importance of aligning pricing with customer expectations. Both co-founders display optimism despite setbacks, emphasizing the need for resilience and learning from experiences. They understand that setbacks are part of the entrepreneurial process and strive to maintain a long-term vision while refining their approach to sales and customer success.
Brian & Scottie Elliott are the husband & wife co-founders of Gather, an interior design project management app.
On this episode, Rob chats with Brian & Scottie about taking their product upmarket, focusing on customer success, hiring consultants and contractors, and more!
The topics we cover
[01:43] Check in on how this week has been going
Setting things in motion with some new hires
MRR now growing off the chain but feeling good about accomplishments
Shifting focus from growing while also building out process
MRR growth is not everything
[04:50] Scottie talks about hiring
Looking at three potential hires right now: lead gen, VA, and an industry expert
Consultant vs contractor. A contract shows up and performs a task, a consultant is an expert in the industry
Moving from task-based hires to project-based hires
With Tinyseed funding now have the opportunity to do more hiring
[08:59] New business processes
Scottie was initially doing customer support
Now realizing needing to focus on customer success to help make sure the customer is successful
[10:21] Challenging sales cycles and losing an enterprise deal
Had a potential enterprise deal (40-50 seats) but the contract was pulled last minute based on the price
The contract eventually went to 0 and the client ghosted Scottie & Brian
Losing contracts is disappointing, but they'll continue to reach out until they get a "no".
Going to dig into the "why" to understand if it was pricing, or something else.
Founders need to decide between learning or hiring for specific skill sets
Important to have a sales process in place before handing off to an outsider
Lots of institutional knowledge within a business and sales process that needs to be documented
[17:57] Technical setbacks from the week
They had a complicated new feature about to ship when one of their developers raised an issue that ended up setting them back nearly a week.
Thanks for listening to another episode of TinySeed Tales. If you haven't already, be sure to check out Season 1 of TinySeed Tales where we follow the SaaS journey with Craig Hewitt of Castos.
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