373: Check: Building a SaaS Startup You're Not Rushing to Sell - with Andrew Brown
Nov 2, 2023
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Andrew Brown, founder and CEO of Check, talks about building a payroll infrastructure startup and the challenges of earning trust from early prospects. They discuss the importance of staying in stealth mode and establishing partnerships before officially launching. They also cover the competitive landscape of the payroll industry and the difficulties of being an entrepreneur.
CHECK aims to integrate payroll seamlessly into existing software platforms, offering small business owners a unified and efficient workflow.
Earning trust through network leveraging and cold outreach was crucial for CHECK to establish credibility with early customers and secure partnerships.
Deep dives
Andrew Brown's Journey and the Birth of CHECK
Andrew Brown, the founder and CEO of CHECK, shares his entrepreneurial journey and the inspiration behind founding CHECK. After selling his previous startup, Andrew wanted to build a company that he could work on for a long-term instead of seeking quick success. He spent years searching for the right business idea and eventually landed on the concept for CHECK when a potential partner revealed the complexity of embedding payroll functionality into their HR platform. CHECK spent years in stealth mode, focused on building its product and establishing partnerships. Trust-building with early customers was a significant challenge due to CHECK being a relatively unknown startup. However, through network-based leveraging and thoughtful cold outreach, they ultimately gained trust. Today, CHECK has grown into a team of over 100 people and has raised $119 million in funding.
The Vision for CHECK and its Unique Market Opportunity
CHECK's vision is to provide a platform for building new payroll products and businesses. The aim is to integrate payroll seamlessly into existing software platforms, offering small business owners a unified and efficient workflow. Unlike traditional payroll services that are disconnected from core business platforms, CHECK believes that payroll should be an integrated and effortless part of small business management. With this vision, CHECK partners with platforms like Homebase and Housecall Pro to embed payroll in their tools. This market opportunity is significant, as there is a need for customized and innovative payroll solutions for the millions of small businesses across the country.
Building Trust, Scaling, and Financing CHECK
Earning trust was a critical aspect of building CHECK's customer base. By leveraging their network and carefully executing cold outreach, CHECK was able to establish credibility with early customers. Although CHECK initially had a limited target market of a few hundred potential customers, each partnership was valuable due to the scale of their operations. As the first million in ARR was reached, funding played a crucial role in supporting the complex payroll infrastructure and aligning incentives with partners. The successful fundraising rounds were facilitated by the unique insights, execution, and market opportunity presented by CHECK.
Overcoming Challenges and Looking Towards the Future
CHECK faced challenges like the collapse of its partner bank during a critical payroll period. However, their quick thinking, preparation, and adaptability enabled them to ensure that every employee was paid on time, solidifying their partnership bonds. As for the future, CHECK believes it is just scratching the surface. They plan to continue innovating and building more software solutions for payroll, and they see a vast untapped market with immense potential for growth and disruption. The passion for outdoor activities, such as hiking and skiing, serves as a personal balance for Andrew and aligns with the rejuvenation he gains from exploring the natural world.
