“If you do the hard work up front… you can work for really thin margins… as it scales… incremental margins are really high… Robinhood's incremental margins, it's about 75%.”
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Said on Run the Numbers
The Pro Serv Podcast: Grow, Scale, and Exit a Boutique Professional Services Firm · Scaling Is Subtraction: What the Founder Has to Stop Doing with Todd Rapp | Episode 275
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Set EBITDA growth as the primary goal and linked it to increasing gross margin, using that as the definition of scaling
“If you do the hard work up front… you can work for really thin margins… as it scales… incremental margins are really high… Robinhood's incremental margins, it's about 75%.”
“The goal is to increase EBITDA… add AI employees… reduce bottom line and then increase revenue with follow-ups, phone receptionists.”
“We ran a test where we basically just spammed Reddit for a month... we definitely saw an increase... as soon as we stopped, it went like that”
“The deal itself was about 1.1 million… about half of that was the real estate… we were in that at about five times as far as the valuation… EBITDA margins were probably 50%”
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