How Rentger CEO Chema Larrea grew to $180K revenue and 150 customers in 2019.

hello everyone my guest today is gemma lorea he is a serial entrepreneur based in europe now building a tool called rentger.com a property management software to save time all right gemma you ready to take us to the top yeah all right so tell us about the tool right i own many properties i pay a property manager six percent to handle all of this stuff so i don't have to think about it are you replacing the property manager or the property managers buy your software yeah the property manager use my software and buy my software says i'm not going to substitute the property managers it is a software for help them for for save time and save money usually a property manager have to do a lot of stuff or missing contrast look for the tenants they manage incidents and it's and they in the old way to do these things they do a lot of manual work that make them spend a lot of time so with renderer.com what we do is we automatize a lot of things for example and we have a conciliator a translation between the bank movements and the movement that they will have they have to in their accounting in their got it help me understand just gemini just because it's a short interview i want to try and get quick answers here in terms of what companies pay you on average per month to use your technology what are they paying they are paying for saving time and they are paying what are they actually paying what is the amount they pay on average per month to use your technology yes they they pay 19 euros 19 per year for each unit that they manage in the software okay so i imagine each one has more than one unit on average so what is the average customer paying you per month is it more like forty dollars or sixty dollars no they pay a they their rate is like between two hundred and 300 properties and they pay in 2 000 and 3 000 euros per year okay so two to three thousand euro let's say two thousand euros per year uh or about 150 160 per month is that right yes something like that okay and put this on a timeline for me when did you launch the company yes when did you launch the company yeah i started like one year yes yes and how many and how many property managers have you scaled to today maybe i have like 150 property managers where i'm managing like 5 000 units okay so 150 managers 5 000 units they pay each about 160 per month so you're doing about 24 dollars per month right now in revenue uh yes a little bit a little bit less because uh with some clients they are a big client that have a lot of units we make um a list price so what are a discount so so how much are you doing per month right now then no i'm i'm not making the calculation per month i'm making the calculations of per month is between fifteen thousand fifteen thousand these months at least fifteen thousand okay so you're doing about fifteen thousand dollars per month right now on revenue yes and where were you exactly a year ago do you remember one year ago when i started i i started not with this idea is also for managing rent but it's not a b2b now it's happy to be a b2b a company i started like a b2c because i i started for helping tenants and helping landlords great and now have you done all this bootstrapped or have you raised capital you know bootstrapped and what's your team size today how many people yeah we are now like four people four people and for full time that is spontaneity it depends have any customers who started paying stopped paying yes but the first times yes so what's your churn today yes now like my child is not i don't have the conclusion that it's not really big because they are big they are medium and big companies so how many customers have stopped paying over the past year like five or six okay so like six out of 150 total so your churn is maybe call it six percent something like that worst case yes okay and do you have any things that you upsell these customers no because these customers that they they need they are looking by someone make many things for them they are they don't have a lot of units for managed many properties they have maybe 20 or 30 and somewhere they have one or two and they say that they yeah they say that it's not is is not for them because it's they have to do some work for put the data into somewhere and they and they stop it but i think that maybe one or two they will return okay and are you operating the company right now is that cash flow positive or are you burning capital no i i'm not looking for no is the company burning money every month or are you making money yeah no we are making money we all our expenses are paying the employees so what are total expenses monthly maybe three thousand euro okay so each month you're making about ten thousand dollars in free cash flow yes and what do you do with that money do you keep it in the business or do you pay it out to yourself as dividends uh no i invest inside the company um for example now i'm contrasting more people for going faster so we are growing the team and we are investing in the company so i don't send anything how much are you spending to get a new customer who pays you a hundred dollars per month [Music] how much i i spent okay most of the of the customers they arrive because we have a really good sale and also we are we are visiting we are visiting spain but i will experience in spain also south america and and they they look look up for us because they are not the question is how much money do you spend fully weighted to get a new paying customer maybe uh 200 euros okay so you get paid back in two months yes because they pay 100 per month yes yes is that right yes yes is it right or not right yeah it's not exactly because the usual flow they contact us then we make a demo online demo and maybe two on online demos with the with the people that work there uh and then that's we spent two hours and then we have to import the data because they use the data in excel data sheets so we have uh import all the data to our system and this is like another we have to spend uh maybe a little bit more maybe more maybe in 300 400 yeah okay very good let's wrap up here with your famous five number one what's your favorite business book uh [Music] [Music] is there a ceo you're following or studying what is there a ceo you're following or studying [Music] is there a ceo that you are following or studying no number three what's your favorite online tool for building your company what was doing is there a tool that you use that you really like to build your company no number four how many hours of sleep do you get every night and what's your uh how old are you i'm 55. and what's your situation married single kids i'm single okay no kids and last question what do you wish you're 20 or what something you wish you knew when you were 20. be white playing football play football football soccer play soccer what do you mean the question is what's something you wish you knew when you were twenty yes how to create a company in an easy way not spending a lot of money guys there you have it rent juror.com serving uh doing about fifteen thousand dollars per month serving 150 property managers who pay a hundred dollars per month he launched the company back uh just in 2018 so no revenue exactly a year ago with a team of three people no capital raised boots dropped which obviously i love profitable about ten thousand dollars per month they've turned about six percent of their base as they look to continue to scale spending up to two hundred dollars to get a new 100 a month customer for a two-month payback period gemma thank you for taking us to the top okay thank you