Time-Stamped Show Notes:
- [00:17] Before we jump into today’s interview, please rate, review, and subscribe to the Growth Everywhere Podcast!
- [00:43] Chung started his first business in a dorm room and built it up to be a leading customer service SaaS company which was acquired by Microsoft.
- [01:40] When he stayed with Microsoft after the acquisition, he learned how a large business operates.
- [02:53] One of the systems Microsoft had in place was expense & travel.
- [03:44] When SAP acquired Concur, Chung saw that there was an opportunity for the next disruptor to come in.
- [04:42] Transformation in enterprise software happens every 12 years.
- [06:04] Reports list the exit range for Parature in the $100M range.
- [07:18] TravelBank uses a transactional model that provides more scalability for customers. Most of the revenue is generated from suppliers.
- [08:14] Margins start between 5-10% and can scale up to 30-40% over time.
- [09:09] When you switch from SaaS to transactional model, how does that affect valuations?
- [11:33] When you work off a transactional model are they buying credits or paying as they go?
- [11:55] TravelBank has scaled to 15,000 companies over 2.5 years because the software is generally free to use.
- [12:09] TravelBank’s value proposition.
- [14:40] What other numbers can you share around the business today?
- [14:44] In the 2.5 years since launch, we’ve scaled to 100,000 users. The company has scaled to 15,000 companies, generally in the smaller business category.
- [15:30] In the U.S., 300 billion is spent on global business travel annually.
- [16:12] For TravelBank, the small business segment provides a great opportunity to serve a market that has been underserved.
- [16:57] Chung addresses major changes in how businesses are purchasing software.
- [17:41] “What you see now is this adoption of employees wanting to have a voice in the decision-making process.” -Duke Chung.
- [18:48] How would you recommend that people go out there and figure out how to work on big things?
- [19:55] “A lot of the best ideas take a lot of time to build.” -Duke Chung
- [21:11] Chung reflects on how he felt when his company was acquired.
- [23:02] “My advice is to take your time to build these businesses. Enjoy every moment and think about building something big and amazing.” -Duke Chung
- [23:29] How do you filter for people who are starting businesses that don’t really solve a problem?
- [25:23] Chung always encourages founders to really study the industry that they’re in.
- [25:38] A simple test for product-market fit.
- [26:50] Make sure that you’re solving a problem that’s big enough for enough people.
- [27:43] What does it mean to be thoughtful about building businesses?
- [28:31] “Failing is perfectly fine.” -Duke Chung
- [29:14] You will need an entire community behind you to help you build a business.
- [31:37] What is one new tool you’ve added in the last year that has added a lot of value?
- [33:03] Make sure you have some time to relax your mind.
- [34:32] What is one must-read book you’d recommend?
Resources From The Interview:
- Microsoft acquires Parature
- Sam Altman’s blog post on success
- Duke Chung on Twitter, Facebook, LinkedIn
- Must-read book: Delivering Happiness
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