$50M in annual revenue – Mike McDerment, Freshbooks

$50M in annual revenue – Mike McDerment, Freshbooks

December 17, 2018

Joining Beyond 8 Figures podcast is Mike McDerment, the driving force behind FreshBooks‘ incredible $50M annual revenue.

In this episode, we discuss the numerous topics such as creating time frames for goal setting, the profound effects of social media and internet marketing, sustaining and encouraging company growth rates, and the transformative power of discipline in building a thriving business. Be inspired by Mike’s insights and discover the keys to unlocking success in the business landscape.

About Mike McDerment:

Mike McDerment is the co-founder and CEO of FreshBooks, the world’s #1 cloud accounting software for self-employed professionals. Built in 2003 after he accidentally saved over an invoice, Mike spent 3.5 years growing FreshBooks from his parents’ basement. Since then, over 10 million people have used FreshBooks to save time billing, and collect billions of dollars. A lover of the outdoors, Mike has been bitten so many times it’s rumoured he’s the first human to have developed immunity to mosquitoes.

Calculating your company’s growth rate

Your company’s growth rate is one of the most important metrics to track. It can help you understand how your business is performing, and it can also be used to set goals for the future. To calculate your company’s growth rate, you can use the following formula:

(Current Value – Previous Value) / Previous Value

For instance, if your company’s revenue was $100,000 in 2021 and $120,000 in 2022, your growth rate would be 20%.

In addition to your growth rate, there are a number of other important business indicators that you should track. These include:

  • Profit
  • Revenue
  • Customer acquisition cost
  • Customer lifetime value
  • Churn rate

By taking the time to track important business indicators, you can make better decisions that will help your business grow and succeed.

Here are some additional tips for tracking your company’s growth rate and other important business indicators:

  • Set goals. What do you want to achieve in terms of growth, revenue, profit, etc.? Once you know what you want to achieve, you can track your progress and make adjustments as needed.
  • Use a dashboard. A dashboard is a visual representation of your key metrics. This can be a helpful way to track your progress and identify trends.
  • Get regular reports. If you don’t have the time to track your metrics yourself, you can hire a consultant or use a software solution to get regular reports.

By following these tips, you can ensure that you are tracking your company’s growth rate and other important business indicators effectively.

Best Advice I Ever Received

I remember back in 2005 feeling that if we did not blow our lights out and spend every penny we had on marketing “right now!” someone would obliterate us. I had this impending sense of doom for *years* based on our speed. Turns out I was wrong, and I owe Joe and Levi (my Co-founders) a world of thanks for repeatedly pulling me back from the ledge.


Best Advice I’d Give to Someone Who Wants to Build A $10m+ Business

You can build a business without being forced to work with the wrong people at the wrong time for the wrong reasons. The choice is yours – don’t forget it. Opportunities will present themselves if you keep your feet moving and you string together a series of small successes.


In this episode, Steve, Mary, Richard, and Mike discuss:

  • Creating time frames to help organize and set goals.
  • The effects of social media and the internet in marketing.
  • How to sustain and encourage company growth rates.
  • Discipline in small business and how to creates a thriving business environment.


Key Takeaways:

  • Your marketing should never be fueled by a sense of impending doom and unhappiness.
  • The quality of the people you work with establishes the core foundations of your business.
  • You can’t run the whole business on your own, you must hire to continue scaling and hire people who will scale appropriately with the company.
  • Working together with other people and supporting connections will expand your company and enrich your business.


“You’ve gotta work with great people.”  Mike McDerment


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