Case Study: Boulevard Labs – Scaling Financial Operations for a Unicorn Startup
About Boulevard Labs:
Boulevard Labs is a technology company that has revolutionized the beauty and wellness industry with its innovative platform. Founded by Matt and Sean, the company has experienced remarkable growth, evolving from a small office with a handful of employees to a unicorn startup with over 100 team members.
Challenges:
As Boulevard Labs experienced rapid growth, they faced several financial challenges common to early-stage startups. These included:
1. Reconciling and configuring marketplace income in Stripe: With numerous moving pieces and fees to manage, Boulevard Labs required a complex and in-depth review process to set up their financial systems effectively.
2. Configuring SKUs by revenue type: To accurately track and report revenue, Boulevard Labs needed to properly configure their SKUs based on various revenue types.
3. Managing burn rate and hitting KPIs for funding rounds: As the company scaled, it was crucial to manage expenses and achieve key performance indicators (KPIs) to secure additional funding.
4. Implementing a robust accounts payable (AP) process: Boulevard Labs needed a streamlined AP process to manage payouts efficiently.
5. Ensuring GAAP-compliant revenue amortization: To maintain accurate financial reporting and breeze through future audits, Boulevard Labs required proper revenue amortization for annual subscriptions.
Solutions:
Learn and Grow Financial, an outsourced CFO and accounting firm, partnered with Boulevard Labs to tackle these challenges head-on. Our team worked closely with the founders to implement the following solutions:
1. Stripe Marketplace Income Reconciliation: We conducted a thorough review of Boulevard Labs’ financial systems and developed a customized process to reconcile and configure their marketplace income in Stripe. This ensured accurate tracking and reporting of revenue and fees.
2. SKU Configuration by Revenue Type: Our team collaborated with Boulevard Labs to properly configure their SKUs based on different revenue types. This enabled precise revenue tracking and reporting, providing valuable insights for financial decision-making.
3. Burn Rate Management and KPI Tracking: We worked with Boulevard Labs to establish a robust financial model that tracked key metrics and managed burn rate. This helped the company hit their KPIs and secure additional funding rounds.
4. AP Process Implementation: Our team implemented a streamlined AP process that automated payments, improved efficiency, and ensured timely management of payouts.
5. GAAP-Compliant Revenue Amortization: We guided Boulevard Labs in amortizing revenue from annual subscriptions in accordance with GAAP principles. This ensured accurate financial reporting and prepared the company for future audits.
Results:
Through our partnership, Boulevard Labs achieved significant milestones:
1. Scaled from a small office to 75 employees
2. Secured additional funding rounds by hitting KPIs
3. Streamlined financial operations and reporting
4. Breezed through future audits with GAAP-compliant financials
Learn and Grow Financial’s expertise in financial operations and accounting helped Boulevard Labs navigate the challenges of rapid growth. By implementing robust processes and providing strategic guidance, we enabled the company to focus on its core mission while building a strong financial foundation for long-term success.