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How knowing your metrics can transform your business with Krista Morgan, CEO P2Binvestor

Krista is a natural born leader and entrepreneur. She is a proven executive in alternative finance while also being one of the youngest women in a leadership position in the industry. She left an agency career in digital marketing in London to cofound P2Bi in Colorado in 2012. Since signing the company’s first client in May 2014, she has grown P2Bi’s commercial loan portfolio to $12.5 million, representing 30% month-over-month growth. P2Bi uses invoices to secure most credit lines and in just seven months’ time purchased more than $37 million in invoices. 

Krista and I start talking about the LendIt conference.

Krista is originally Canadian with a degree in Economics. She worked in advertising and digital marketing in the UK. She came across Peer to peer lending industry and then in 2012 she decided to move to Colorado to work on the Peer to Business crowdfunding platform P2BI

P2BI – is a peer to business space. They do million dollar commercial loans. There are a lot of institutional and accredited investors. Syndicate the big loans to smaller parts and

Crowdfunding is risk diversification. You can take a little bit of money from a lot of people and so you can take some risks.

Process in brief of how someone can get help from P2BI-

A woman starts making artisan chocolate and she gets into 15 Whole Foods. Now whole foods loves it and rolls it out to 50 stores. You take that proof and get into Safeway. Now she is having sales of a million dollars. She can fiance that growth using debt and not just taking equity. In the early stages. We should look at other ways possible than just giving up parts of your company.

Revolving Loan– the amounts of loan and go up and down. You only pay for what you use.

Leverage debt, leverage your assets. What you pay for it will be less than what you pay for equity.

Challenges that you see in the fundraising space for women

  • The confidence
  • Women are fundamentally upfront and honest and hedging. The more you do, the more confident you get.
  • Are women inhibiting their own growth or are they not aggressive about their goals?
  • Is it that Women run great companies but they are risk averse?
  • Decide what you want out of your business. Do you want a lifestyle business or you want to take it to the next level. If what you want is to grow it, then take some risks, have confidence and tell others.

Krista talks about a mistake. Looking back they raised money in the business very quickly without really having a beta product.

Struggles that you come across-

  • Niche in the market
  • Get the first customers.

VC’s ask different questions-

What are the metrics? Customer acquisition cost? how will I scale over time. They want to see numbers that demonstrate it.

What are the importance of metrics?

  • KPI’s by team. What should the team be looking at to make better decision.
  • Knowing your metrics can change the way you do business. Keep tracking it and stick with it.
  • Cohort Analysis– I am going to look at all the clients, chart their revenue month by month over time. Month by month, assess if the revenue is increasing/decreasing . Allows you to ask questions like what am i doing differently this quarter than last quarter.

Skills that women entrepreneurs should develop.

  • Writing
  • Speaking and presenting- get in front of the audience and talk with authority.

If you would offer a first time entrepreneur one piece of advice, what would it be?

Be organized. Fundraising is a repeatable process. If you can have all your ducks in a row, it will make it infinitely easier.

 

Lightning Round

What trophy would you want on your mantle?

Innovator of the year at LendIt

What is your guilty pleasure?

Greys anatomy and Nashville

What are you currently reading?

Predictable revenue

What is your one productivity hack?

Virtual Assistant

What is your personal motto?

There is no traffic on the extra mile.

What would you do different if you were given another chance?

Get your product out and get customers before you raise money.

 Contact Krista Morgan:

@krismtl

kmorgan@p2bi.com

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