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Mar 8, 2021 · 15m · top-founders

Pet Land Riches! 60% Profit Margins on $100m SaaS Fintech Play

Brad Parker · 7m spoken Nathan Latka · 5m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

Host Nathan Latka interviews entrepreneur Brad Parker to unpack how he bootstrapped and merged retail SaaS platform Form Piper with financing brokerage Financing Your Way, creating a combined fintech enterprise generating $138,000 in monthly revenue with 50% to 60% profit margins.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 40.7% of the talking time here. How this is scored →

Nathan as informed peer 5.0 Guest teaching 3.3 Guest disagreement 1.0 Nathan pushing back 2.8
05100:0010:003:59–7:32 · Nathan as informed peer 6/10 Form Piper Customer Base, Pricing, and SaaS Revenue Nathan quickly breaks down the math behind Form Piper's customer volume and ARPU into roughly $18k in MRR. He pushes to clarify the difference between individual brand owners and multi-location license counts.7:32–10:40 · Nathan as informed peer 6/10 Financing Your Way Economics, Combined MRR, and Profitability Nathan probes how Brad valued and acquired the financing company based on its $100M GMV. Brad corrects Nathan by explaining he already owned both businesses and executed an internal merger rather than an external purchase.10:41–13:44 · Nathan as informed peer 6/10 Team Structure and Engineering Partnership Nathan investigates Brad's engineering structure and challenges him on capital allocation decisions regarding whether to take out profits or reinvest. Brad openly admits he has not yet calculated CAC as they ramp up marketing.13:46–14:32 · Nathan as informed peer 2/10 The Famous Five Rapid Fire Q&A Nathan proceeds through the standard Famous Five rapid-fire questions, and Brad gives direct, concise responses.3:59–7:32 · Guest teaching 4/10 Form Piper Customer Base, Pricing, and SaaS Revenue Nathan quickly breaks down the math behind Form Piper's customer volume and ARPU into roughly $18k in MRR. He pushes to clarify the difference between individual brand owners and multi-location license counts.7:32–10:40 · Guest teaching 5/10 Financing Your Way Economics, Combined MRR, and Profitability Nathan probes how Brad valued and acquired the financing company based on its $100M GMV. Brad corrects Nathan by explaining he already owned both businesses and executed an internal merger rather than an external purchase.10:41–13:44 · Guest teaching 3/10 Team Structure and Engineering Partnership Nathan investigates Brad's engineering structure and challenges him on capital allocation decisions regarding whether to take out profits or reinvest. Brad openly admits he has not yet calculated CAC as they ramp up marketing.13:46–14:32 · Guest teaching 1/10 The Famous Five Rapid Fire Q&A Nathan proceeds through the standard Famous Five rapid-fire questions, and Brad gives direct, concise responses.3:59–7:32 · Guest disagreement 1/10 Form Piper Customer Base, Pricing, and SaaS Revenue Nathan quickly breaks down the math behind Form Piper's customer volume and ARPU into roughly $18k in MRR. He pushes to clarify the difference between individual brand owners and multi-location license counts.7:32–10:40 · Guest disagreement 2/10 Financing Your Way Economics, Combined MRR, and Profitability Nathan probes how Brad valued and acquired the financing company based on its $100M GMV. Brad corrects Nathan by explaining he already owned both businesses and executed an internal merger rather than an external purchase.10:41–13:44 · Guest disagreement 1/10 Team Structure and Engineering Partnership Nathan investigates Brad's engineering structure and challenges him on capital allocation decisions regarding whether to take out profits or reinvest. Brad openly admits he has not yet calculated CAC as they ramp up marketing.13:46–14:32 · Guest disagreement 0/10 The Famous Five Rapid Fire Q&A Nathan proceeds through the standard Famous Five rapid-fire questions, and Brad gives direct, concise responses.3:59–7:32 · Nathan pushing back 4/10 Form Piper Customer Base, Pricing, and SaaS Revenue Nathan quickly breaks down the math behind Form Piper's customer volume and ARPU into roughly $18k in MRR. He pushes to clarify the difference between individual brand owners and multi-location license counts.7:32–10:40 · Nathan pushing back 4/10 Financing Your Way Economics, Combined MRR, and Profitability Nathan probes how Brad valued and acquired the financing company based on its $100M GMV. Brad corrects Nathan by explaining he already owned both businesses and executed an internal merger rather than an external purchase.10:41–13:44 · Nathan pushing back 3/10 Team Structure and Engineering Partnership Nathan investigates Brad's engineering structure and challenges him on capital allocation decisions regarding whether to take out profits or reinvest. Brad openly admits he has not yet calculated CAC as they ramp up marketing.13:46–14:32 · Nathan pushing back 0/10 The Famous Five Rapid Fire Q&A Nathan proceeds through the standard Famous Five rapid-fire questions, and Brad gives direct, concise responses.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 65.5% · guest 34.5%0:00 · Nathan 65.5% · guest 34.5%3:00 · Nathan 33.8% · guest 66.2%3:00 · Nathan 33.8% · guest 66.2%6:00 · Nathan 31.3% · guest 68.7%6:00 · Nathan 31.3% · guest 68.7%9:00 · Nathan 24% · guest 76%9:00 · Nathan 24% · guest 76%12:00 · Nathan 46% · guest 54%12:00 · Nathan 46% · guest 54%15:00 · Nathan 85.9% · guest 14.1%15:00 · Nathan 85.9% · guest 14.1%
Sharpest disagreement ▶ 8:47 Correction on company acquisition

Brad gently pushes back on Nathan's buyout valuation premise, explaining that he already owned 100% of the finance company.

 Hardest push from Nathan ▶ 4:25 Pushing for exact customer numbers

Nathan refuses vague client metrics and insists on clarifying the difference between total paying business owners and deployed location licenses.

 Biggest teaching moment ▶ 8:47 Educating host on internal company consolidation

Brad explains that rather than an external M&A deal with purchase multiples, the transaction was an internal combination of his existing businesses.

 Nathan holds their own ▶ 7:52 Instant basis points calculation

Nathan immediately translates Brad's 100 to 200 basis points figure into standard percentage fee terms of 1 to 2 percent on GMV.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Form Piper Customer Base, Pricing, and SaaS Revenue 6414 Nathan quickly breaks down the math behind Form Piper's customer volume and ARPU into roughly $18k in MRR. He pushes to clarify the difference between individual brand owners and multi-location license counts.
Financing Your Way Economics, Combined MRR, and Profitability 6524 Nathan probes how Brad valued and acquired the financing company based on its $100M GMV. Brad corrects Nathan by explaining he already owned both businesses and executed an internal merger rather than an external purchase.
Team Structure and Engineering Partnership 6313 Nathan investigates Brad's engineering structure and challenges him on capital allocation decisions regarding whether to take out profits or reinvest. Brad openly admits he has not yet calculated CAC as they ramp up marketing.
The Famous Five Rapid Fire Q&A 2100 Nathan proceeds through the standard Famous Five rapid-fire questions, and Brad gives direct, concise responses.

Statements from this episode (9)

Assertion Not checkable as stated
Parker: Form Piper reduces retail financing process from 25 to 2 minutes
“So we've taken that 25 minute process down to a couple minutes.”
Brad Parker Mar 8, 2021 ▶ 3:54
Disclosure
Parker: Form Piper has 90 active licenses across roughly 60 business owners
“We have a few multi-store operators, you know, one has 10 couple have five, so you're probably looking at 60 different business owners with 90, 90 licenses being used.”
Brad Parker Mar 8, 2021 ▶ 4:38
Disclosure
Parker: Form Piper charges an average license fee of $200 monthly
“On average right now, our license fee is about 200 dollars a month. It can be anywhere from 150 to 300 dollars a month, depending on how many applications you're running.”
Brad Parker Mar 8, 2021 ▶ 4:54
Disclosure
Parker: All companies have been bootstrapped to maintain control
“We've bootstrapped all of our companies and like being in control.”
Brad Parker Mar 8, 2021 ▶ 7:10
Assertion Not checkable as stated
Parker: Financing Your Way generates $100K to $120K per month
“That revenue right now is about a hundred to a 120,000 dollars a month, just depending on the month.”
Brad Parker Mar 8, 2021 ▶ 7:37
Assertion Not checkable as stated
Parker: Financing Your Way processed $100M in loan GMV last year
“About a hundred million dollars.”
Brad Parker Mar 8, 2021 ▶ 8:31
Assertion Not checkable as stated
Parker: Combined Form Piper and Financing Your Way revenue hit $138K last month
“Last month we did a 138,000 dollars.”
Brad Parker Mar 8, 2021 ▶ 9:52
Assertion Not checkable as stated
Parker: Financing Your Way is highly profitable while Form Piper is not yet profitable
“The finance company is extremely profitable. Form Piper is not currently just due to development.”
Brad Parker Mar 8, 2021 ▶ 10:23
Assertion Not checkable as stated
Parker: Form Piper and Financing Your Way net 50% to 60% profit margin
“When looking at the P and L, you know, it drops about 50 to 60% profit, you know, to the bottom line.”
Brad Parker Mar 8, 2021 ▶ 11:57
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