Startup executives often wear multiple hats and juggle a myriad of responsibilities. Josh Epstein is not typical. He manages both the finance and revenue generation functions at Coder, a startup based in Austin, Texas that provides cloud development environments and open source tools.
Coder raised $35 million in Series B2 funding in June, but like most ventures, spending needs to be closely monitored. As CFO and chief revenue officer, Mr. Epstein has certain advantages. It is important that an organization's capital deployment choices include not only new customers but also new customers. right customer.
We spoke with Epstein about how Coder is working to generate revenue, manage expenses, and carefully build its customer base.
How do you adjust your revenue generation priorities and aim for profitability while controlling overhead costs?
As a growing startup, we need to strategically invest in activities, tools, and people that are in the best interest of our customers. This includes participating in and creating events and relationship-building opportunities that educate prospects and introduce new approaches to solving strategic challenges. We do this with an emphasis on being face-to-face and one-on-one to build a foundation of trust between individuals and Coders.
People and relationships are at the heart of revenue generation. That's why we invest upfront in hiring people with industry connections within our ideal customer base. They will build a higher level of trust with our prospects and generate a higher ROI as we build our business.
How do you prioritize where to apply your investments and resources in the early stages of your business?
Start-ups typically focus on finding and confirming product-market fit. They don't spend money on sales until they are sure they have an opportunity. Once growth opportunities are identified, investments shift back into marketing, sales, and product and engineering to stay ahead of the market and new competitors.
Investments and priorities should change based on what's important to your company and early customers at that particular point in time. I understand where I am in that journey, I focus on the investments that matter most, both time and money, and I make sure the entire organization is educated and aligned on where to direct our energies. We recommend that you check.
Can you share your strategy for selecting a targeted customer base to create the most value?
The first step is to decide who your ideal customer is. You have to sit down and define them and understand who they are and what they care about. Next, you have to be able to say no to customers who don't meet your standards. Contrary to what many people think, more customers is not necessarily better. I think that's the biggest mistake companies make. They spend the same time and money on customers who don't fit and don't provide the ROI needed to justify the initial cost.
Keep in mind that your ideal customer may change over time as your product and market evolve. At Coder, we've focused on the 2,000 largest, compliance-focused customers around the world who can get the most out of our product, but as our product has evolved, we've also seen market value for small and medium-sized businesses. If you are not aware of what changes are coming and what will contribute to your company's growth, you may miss opportunities.
There is a lot of discussion about the use of GenAI in finance. Do you have any advice on how financial professionals can get the most out of technology?
GenAI supports financial professionals in different ways depending on their experience. For example, analytical and mathematical skills in tools like ChatGPT have grown exponentially. Young finance professionals can perform analysis in natural language format without having to know complex tools, modeling, or Excel formulas.
Those further advanced in the field of finance may need to communicate frequently with stakeholders and colleagues. Here, GenAI can help you create effective and clear reports, emails, and presentations. Senior finance professionals can use GenAI as a “sparring partner.” For example, you can prepare for an earnings call by providing financial data to a tool like ChatGPT and asking it to come up with 10 questions investors might ask based on the results.
The use cases are endless, but people don't give enough attention to two things: First, GenAI can only achieve about 80%. You need to review, refine, and polish your work. Next, CFOs need to understand the intellectual property protection and indemnification provided by their specific tools. Many paid versions offer this, but the public free version does not.
