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Oct 19, 2016 · 17m · top-founders

EP 452: 70k MRR, CSTOREPRO, Data play, <1m Raised, <5% monthly churn

Nathan Latka · 9m spoken Arif Mamun · 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

In this episode of The Top podcast, host Nathan Latka interviews C-Store Pro Technologies co-founder and CEO Arif Mamun to examine the company's $73,000 monthly recurring revenue, sub-5 percent churn rate, and strategic transition from convenience store management software into a high-value retail data enterprise.

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 60.9% of the talking time here. How this is scored →

Nathan as informed peer 5.0 Guest teaching 1.5 Guest disagreement 1.3 Nathan pushing back 3.2
05100:0010:000:56–3:40 · Nathan as informed peer 4/10 Executive Tool Recommendation and Next Day Preview Nathan introduces the guest and quickly establishes the interview tone by cynically probing the value of an MBA before moving into the company's business model and pricing tiers.3:40–6:00 · Nathan as informed peer 6/10 Evaluating SaaS Customers, MRR, and Annual Growth Nathan immediately pushes back when Arif quotes 3,200 users, refusing to count free users as real customers and quickly doing the math to calculate actual MRR at $73k.6:01–8:35 · Nathan as informed peer 6/10 Sub-5 Percent Churn and Enterprise Data Monetization Nathan scrutinizes Arif's remarkably low 5% annualized churn rate by translating it to losing only 7 customers a month, while Arif explains their long-term data monetization strategy.8:36–10:59 · Nathan as informed peer 6/10 Platform Scale, Team Structure, and Work Culture Nathan calculates blended customer acquisition cost based on trial conversions and questions Arif's willingness to spend up to 1:1 of LTV on CAC.11:01–14:28 · Nathan as informed peer 6/10 Monthly Cash Burn, Debt Financing, and Expansion Plans Nathan confronts Arif with financial deduction, calculating that $100k/mo headcount against $70k MRR means burning over $30k monthly, prompting Arif to disclose debt and personal capital.14:31–15:30 · Nathan as informed peer 2/10 The Famous Five Rapid-Fire Questions A standard, friendly Famous Five rapid-fire closing segment where Arif answers standard questions about tools, routines, and life lessons.0:56–3:40 · Guest teaching 1/10 Executive Tool Recommendation and Next Day Preview Nathan introduces the guest and quickly establishes the interview tone by cynically probing the value of an MBA before moving into the company's business model and pricing tiers.3:40–6:00 · Guest teaching 1/10 Evaluating SaaS Customers, MRR, and Annual Growth Nathan immediately pushes back when Arif quotes 3,200 users, refusing to count free users as real customers and quickly doing the math to calculate actual MRR at $73k.6:01–8:35 · Guest teaching 3/10 Sub-5 Percent Churn and Enterprise Data Monetization Nathan scrutinizes Arif's remarkably low 5% annualized churn rate by translating it to losing only 7 customers a month, while Arif explains their long-term data monetization strategy.8:36–10:59 · Guest teaching 2/10 Platform Scale, Team Structure, and Work Culture Nathan calculates blended customer acquisition cost based on trial conversions and questions Arif's willingness to spend up to 1:1 of LTV on CAC.11:01–14:28 · Guest teaching 2/10 Monthly Cash Burn, Debt Financing, and Expansion Plans Nathan confronts Arif with financial deduction, calculating that $100k/mo headcount against $70k MRR means burning over $30k monthly, prompting Arif to disclose debt and personal capital.14:31–15:30 · Guest teaching 0/10 The Famous Five Rapid-Fire Questions A standard, friendly Famous Five rapid-fire closing segment where Arif answers standard questions about tools, routines, and life lessons.0:56–3:40 · Guest disagreement 1/10 Executive Tool Recommendation and Next Day Preview Nathan introduces the guest and quickly establishes the interview tone by cynically probing the value of an MBA before moving into the company's business model and pricing tiers.3:40–6:00 · Guest disagreement 2/10 Evaluating SaaS Customers, MRR, and Annual Growth Nathan immediately pushes back when Arif quotes 3,200 users, refusing to count free users as real customers and quickly doing the math to calculate actual MRR at $73k.6:01–8:35 · Guest disagreement 1/10 Sub-5 Percent Churn and Enterprise Data Monetization Nathan scrutinizes Arif's remarkably low 5% annualized churn rate by translating it to losing only 7 customers a month, while Arif explains their long-term data monetization strategy.8:36–10:59 · Guest disagreement 2/10 Platform Scale, Team Structure, and Work Culture Nathan calculates blended customer acquisition cost based on trial conversions and questions Arif's willingness to spend up to 1:1 of LTV on CAC.11:01–14:28 · Guest disagreement 2/10 Monthly Cash Burn, Debt Financing, and Expansion Plans Nathan confronts Arif with financial deduction, calculating that $100k/mo headcount against $70k MRR means burning over $30k monthly, prompting Arif to disclose debt and personal capital.14:31–15:30 · Guest disagreement 0/10 The Famous Five Rapid-Fire Questions A standard, friendly Famous Five rapid-fire closing segment where Arif answers standard questions about tools, routines, and life lessons.0:56–3:40 · Nathan pushing back 2/10 Executive Tool Recommendation and Next Day Preview Nathan introduces the guest and quickly establishes the interview tone by cynically probing the value of an MBA before moving into the company's business model and pricing tiers.3:40–6:00 · Nathan pushing back 5/10 Evaluating SaaS Customers, MRR, and Annual Growth Nathan immediately pushes back when Arif quotes 3,200 users, refusing to count free users as real customers and quickly doing the math to calculate actual MRR at $73k.6:01–8:35 · Nathan pushing back 3/10 Sub-5 Percent Churn and Enterprise Data Monetization Nathan scrutinizes Arif's remarkably low 5% annualized churn rate by translating it to losing only 7 customers a month, while Arif explains their long-term data monetization strategy.8:36–10:59 · Nathan pushing back 3/10 Platform Scale, Team Structure, and Work Culture Nathan calculates blended customer acquisition cost based on trial conversions and questions Arif's willingness to spend up to 1:1 of LTV on CAC.11:01–14:28 · Nathan pushing back 5/10 Monthly Cash Burn, Debt Financing, and Expansion Plans Nathan confronts Arif with financial deduction, calculating that $100k/mo headcount against $70k MRR means burning over $30k monthly, prompting Arif to disclose debt and personal capital.14:31–15:30 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions A standard, friendly Famous Five rapid-fire closing segment where Arif answers standard questions about tools, routines, and life lessons.

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

0:00 · Nathan 74.6% · guest 25.4%0:00 · Nathan 74.6% · guest 25.4%3:00 · Nathan 46.4% · guest 53.6%3:00 · Nathan 46.4% · guest 53.6%6:00 · Nathan 40.3% · guest 59.7%6:00 · Nathan 40.3% · guest 59.7%9:00 · Nathan 37.7% · guest 62.3%9:00 · Nathan 37.7% · guest 62.3%12:00 · Nathan 83.7% · guest 16.3%12:00 · Nathan 83.7% · guest 16.3%15:00 · Nathan 90.9% · guest 9.1%15:00 · Nathan 90.9% · guest 9.1%
Sharpest disagreement ▶ 9:47 Arif defends a 1:1 CAC to LTV ratio

Arif pushes back against traditional CAC conservatism, asserting he is willing to spend 100% of current LTV because data monetization will expand future customer value.

 Hardest push from Nathan ▶ 3:59 Nathan dismisses freemium user figures

Nathan bluntly shuts down Arif's 3,200 customer metric by retorting 'that's not a customer' and demanding only paying customer figures.

 Biggest teaching moment ▶ 7:30 Arif explains enterprise data monetization beyond SaaS fees

Arif reframes the entire business model from pure SMB software to an enterprise data play for corporate giants like Coca-Cola and Anheuser-Busch.

 Nathan holds their own ▶ 11:51 Nathan calculates monthly burn from headcount costs

Nathan uses arithmetic on headcount costs ($100k) versus MRR ($70k) to prove the company is burning at least $30k a month despite Arif denying a fundraise.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Executive Tool Recommendation and Next Day Preview 4112 Nathan introduces the guest and quickly establishes the interview tone by cynically probing the value of an MBA before moving into the company's business model and pricing tiers.
Evaluating SaaS Customers, MRR, and Annual Growth 6125 Nathan immediately pushes back when Arif quotes 3,200 users, refusing to count free users as real customers and quickly doing the math to calculate actual MRR at $73k.
Sub-5 Percent Churn and Enterprise Data Monetization 6313 Nathan scrutinizes Arif's remarkably low 5% annualized churn rate by translating it to losing only 7 customers a month, while Arif explains their long-term data monetization strategy.
Platform Scale, Team Structure, and Work Culture 6223 Nathan calculates blended customer acquisition cost based on trial conversions and questions Arif's willingness to spend up to 1:1 of LTV on CAC.
Monthly Cash Burn, Debt Financing, and Expansion Plans 6225 Nathan confronts Arif with financial deduction, calculating that $100k/mo headcount against $70k MRR means burning over $30k monthly, prompting Arif to disclose debt and personal capital.
The Famous Five Rapid-Fire Questions 2001 A standard, friendly Famous Five rapid-fire closing segment where Arif answers standard questions about tools, routines, and life lessons.

Statements from this episode (14)

Assertion Not checkable as stated
Mamun: C-Store Pro customers pay an average of $49 monthly
“49 bucks a month.”
Arif Mamun Oct 19, 2016 ▶ 2:54
Assertion Supported
Mamun: C-Store Pro has raised under $1M via convertible notes
“We've raised under a million.”
Arif Mamun Oct 19, 2016 ▶ 3:43
Assertion Not checkable as stated
Mamun: C-Store Pro has roughly 1,500 paying customers
“Well, so paying customers would be 1500 or there about.”
Arif Mamun Oct 19, 2016 ▶ 4:07
Assertion Not checkable as stated
Mamun: C-Store Pro is generating around $73,000 in MRR
“That would be in line, yes.”
Arif Mamun Oct 19, 2016 ▶ 4:22
Prediction Not checkable as stated
Mamun: C-Store Pro is on track to break $1M revenue in 2016
“We, we're on track.”
Arif Mamun Oct 19, 2016 ▶ 5:48
Assertion Not checkable as stated
Mamun: C-Store Pro's annualized gross churn is under 5%
“Our churn currently is sub five percent annualized.”
Arif Mamun Oct 19, 2016 ▶ 6:30
Disclosure
Mamun: C-Store Pro is pivoting from SaaS to data monetization
“The pivot that we're trying to do is, is, is from SAS to a data play, a much broader data play.”
Arif Mamun Oct 19, 2016 ▶ 7:48
Assertion Not checkable as stated
Mamun: C-Store Pro recorded 13 million basket transactions in August 2016
“The numbers now number in August was thirteen million.”
Arif Mamun Oct 19, 2016 ▶ 8:55
Disclosure
Mamun: C-Store Pro is willing to push CAC to 1:1 LTV
“All things being equal, we'd go, we go all the way up to our lifetime value because we feel strongly that the LTV is, is going to rise on the other end.”
Arif Mamun Oct 19, 2016 ▶ 10:04
Assertion Not checkable as stated
Mamun: C-Store Pro spends roughly $180 per trial customer
“So customer acquisition cost ranges month to month but it's roughly at this point about a 180 bucks a trial customer.”
Arif Mamun Oct 19, 2016 ▶ 10:24
Disclosure
Mamun: C-Store Pro acquires customers primarily through offline marketing channels
“So it's mostly offline stuff right now and a little bit of online stuff. You know, trade shows, conventions you know flyers and things like that. Direct mail.”
Arif Mamun Oct 19, 2016 ▶ 10:48
Prediction Not checkable as stated
Mamun: Brick-and-mortar retail is about to experience an e-commerce-scale revolution
“A brick and mortar retail is about to go through the same revolution that, that e-commerce retail did in the early 2000, late 19 nineties.”
Arif Mamun Oct 19, 2016 ▶ 11:37
Assertion Not checkable as stated
Mamun: C-Store Pro monthly headcount cost is reaching $100,000
“It's now getting up to a 100,000 a month.”
Arif Mamun Oct 19, 2016 ▶ 11:51
Disclosure
Mamun: C-Store Pro funds operations via bank credit lines and founder equity
“Bank credit lines. Even personal money. We're putting in our own equity into this thing.”
Arif Mamun Oct 19, 2016 ▶ 12:16
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