486: Blox with Simon Ritchie 5u143n

Introducing thoughtbot's ongoing maintenance service. Need reliable and maintenance for your software? Look no further. Our expert team handles upgrades, bug fixes, UI adjustments, and new feature development. And the best part? Our maintenance packages start at just 5k per month for companies of all sizes. From Ruby on Rails to Node, React, and, yes, even PHP, we've got you covered. Trust thoughtbot for top-notch and optimized performance. To receive a custom quote, [email protected]. __ Simon Ritchie, the founder and CEO of Blox, discusses his background and journey leading up to starting the company. He began his career in finance but discovered his ion for technology and finance systems. He worked at Anaplan, a successful finance planning and analysis software company, but saw the limitations of rigid systems when COVID-19 hit. He realized there was a need for a more flexible and accessible financial modeling and planning tool, especially for small businesses and charities. Blox aims to fill this gap by providing a powerful yet easy-to-use modeling, calculation, and planning engine that sits between spreadsheets and complex enterprise software. The company is about a year old, has raised venture funding, and launched a free tier of its product. They prioritize building a compelling product, iterating quickly, and engaging with s to understand their needs. Simon acknowledges that building the product has been enjoyable, leveraging his background in product management. However, sales, marketing, and customer traction have proven challenging. Nonetheless, he remains optimistic about Blox's progress and is committed to providing a valuable solution to help businesses make informed decisions and achieve their financial goals. Blox Follow Blox on Twitter, Facebook, LinkedIn, Instagram, or TikTok Follow Simon Ritchie on LinkedIn. Follow thoughtbot on Twitter or LinkedIn. Become a Sponsor of Giant Robots! Transcript: VICTORIA: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido. WILL: And I'm your other host, Will Larry. And with me today is Simon Ritchie, Founder and CEO of Blox, which provides pre-built planning models to help business leaders escape the tyranny of complex, clunky, and error-prone spreadsheets, giving you visibility into and confidence in the reality of your business. Simon, thank you for ing us. How are you doing today? SIMON: Hey, guys. Yeah, I'm very good today. VICTORIA: So, Simon, where are you ing us from today? SIMON: So, I'm ing from the UK. I live in a city called Brighton on the South Coast of the UK, where it's a lovely day today. It's nice and sunny. VICTORIA: Oh, that's where our thoughtbot summit has been the last two years, in Brighton, actually. SIMON: Fantastic. Yeah, it's a wonderful place. VICTORIA: And a great place to be in the summer right now, right? Do you get out in the water very often? SIMON: Yeah. Yeah, absolutely. Like many others, we have a paddle board. So, I go out with my family. I have four kids, so we go out and have fun at the beach. Brighton's got a stony beach. So we are, as Brightoners, we're very proud of the stones. You know, if you have sand, you get sand everywhere, stones are...it's much cleaner. [laughter] It does hurt your feet, though. There you go. [laughter] WILL: Yeah, that was the first time I've ever seen that, and I was like, that's very interesting. SIMON: Yeah. [laughs] WILL: I probably will like it because I don't like the sand getting everywhere, so... SIMON: Yeah, absolutely. WILL: So, yeah, I probably could trade that in. [laughs] SIMON: Yeah, yeah. You just have to wear shoes if you want to go run around. We're proud. We're proud of it. VICTORIA: I didn't think about that either. It makes a lot more sense. I don't really like the sand [laughter]. Rocks make more sense. But in California here, we're surfing, so having too many rocks on the beach would be a problem [laughs] for those of us who can't control ourselves. [laughter] SIMON: Yes. Yeah, Victoria, I thought you lived in Wales when I first looked at your profile -- VICTORIA: Oh, right. SIMON: On LinkedIn. And I thought, oh -- VICTORIA: That's...yeah. SIMON: A Welsh girl. That's -- VICTORIA: My family is actually Welsh on my mother's side. SIMON: Oh really? VICTORIA: Yeah. SIMON: Okay. VICTORIA: And Cardiff...California is named after Cardiff, Wales. SIMON: Okay, oh. VICTORIA: But yeah, so that's where it came from. So, I thought that was very cute, too. SIMON: [laughs] Very cool. VICTORIA: But, you know, Cardiff-by-the Sea is its own little beach town here. SIMON: It's not Wales. [laughs] VICTORIA: Not Wales. [laughs] Pretty different. But I do hear Wales is beautiful. SIMON: Oh, it is. Yeah, absolutely. VICTORIA: Awesome. Well, let's talk about Blox a little bit. So, why don't you tell us maybe a little bit about your background and how you came around to starting it? SIMON: Yeah, great. So, and just in of me and my background, so I started my career in finance, actually. I didn't really know what to go and study, so I thought, you know, studying numbers was probably a good thing. So, I did an ing finance degree. And I got into the world of work in finance roles very quickly realized that finance wasn't for me. I just didn't really want to be a CFO. I just didn't feel the ion for it. But I was the techie guy always in the finance team. I was the guy people turned to and originally for, you know, Excel and spreadsheet modeling. And behind Excel, you've got VBA. So, you've got this little, you know, it was my first exposure to programming and some, you know, and what coding was. And so, I sort of just realized, actually, I love the technology side. And so, I followed my ion more into the finance systems arena. And my ion has always been...the focus of my career has been helping leaders understand what's going on in the business by getting hold of those numbers, the data that they have, and analyzing it, summarizing it, trying to draw insights from it so they can make decisions. And so, in the early days, it was lots of Excel spreadsheet modeling. And, in some businesses, there's still tons of spreadsheet modeling going on. And then the next phase of my career was actually working in...there are a number of software options that help you with planning, modeling, reporting, et cetera. So, I ed...well, I did some consulting for a while and then ed a company called Anaplan. And was an early employee, the company was still very early in their journey. They were just launching a European office, so I ed as one of the early European employees. And Anaplan went on, over the course of nearly eight years that I was there, to be [inaudible 04:31], absolute rocket ship, grew up to 2,000 people, and we floated on the New York Stock Exchange and then IPO in 2018. It was acquired last year for a very big number. So really fantastic time there. But to just talk about Blox, so I left Anaplan two years ago. The observations that I made that led to Blox ultimately were there were sort of three main aspects. Like, when COVID happened, the world changed radically. And what I saw...I was working in Anaplan. For anyone who doesn't know, Anaplan they focus on selling to large enterprise. So, you may not be familiar with the company if you're not a CFO or a finance person in a very large company. And they sell very expensive product. It's very, very powerful modeling, calculation, FP&A, finance planning, and analysis software. And so, companies...we were working with companies like Procter & Gamble, HP, Cisco, Google, and others. What I observed was when COVID kicked in, the FP&A system was too rigid. So, Anaplan, you know, these models that people had built up, spent a lot of time and energy building up, it was too rigid. The world changed so much that they couldn't really use their typical budgeting systems or these FP&A solutions. They couldn't use Anaplan. So, everybody just jumped back into a spreadsheet to figure out, you know, do I still have a business? How am I going to survive this if I just had to shut all my retail stores or if I had to send everybody home? You know, so everyone was using spreadsheets, basically. And so my observation there was that the tools that are available at that point are still way too hard to use. They're not flexible enough. You can't mold them quickly enough to really handle some of those scenarios that you want to throw at it as a leader. So, when you're trying to make big decisions about new revenue streams, new offices that you would want to launch, restructuring your team, investing in more people, those things they're really hard to model in the tools that are available. You need real specialist experience and expertise. That's very expensive, et cetera. So that was one part. And then the other thing that happened was I've worked most of my career in larger companies. And I'd worked in, yeah, in finance, in businesses. And also, I'm a chartered management ant. It's all about helping with managing a business with your numbers. And I hadn't really worked with many very small companies. I ended up volunteering. When the lockdowns were happening, there were lots of people that were sheltering in place and they were staying at home. And so, a local charity had organized to put together food parcels, and then they found drivers to drive them around. And so I had volunteered through a friend of a friend, and somewhere my name got put in. So, I ended up driving these food deliveries around for the summer, and I loved it. Every Thursday, I'd take a couple of hours to just drive around and drop some food on people's doorsteps and then maybe have a quick conversation with them from a distance. I got connected with the charity. It is a local charity that runs on the South Coast in England here. And they found out I was an ant, and I worked in software technology. They were like, [gasps], please, you can be our new best friend. We need some help. So, I ended up helping them a bit in their back office with some of the reporting that they do. And to cut a long story short, they're a charity. They live on grant funding that they get. So, they apply for grants, and then the grant providers want them to report back on the progress that they've made, the services that they've offered, the people they've helped. So, I went and helped them, and they needed these reports and some plans for grants that they were trying to get. What seemed really easy to me, like, they were showing me that they had to this data from a system. And they needed to filter it and then count how many people they had been helping. And they basically were just, you know, with different needs and in different categories and cohorts. So, they would basically the data, open it in a spreadsheet, put a filter on, select some filters, and then they would count the number of rows that had that criteria. And then, they would type the number into an email. And I just showed them some very simple things, like, when you do a filter or if you select the cells, you can see a countdown at the bottom-right in Excel, and I showed them that. And they almost fell off their chair because [laughs] they were like, "Oh, you know, why did we not see that sooner?" But I suppose through that, and, you know, through the various times that I helped them...and I just helped them with initially some spreadsheets and just some help with that. But it just showed me that there are a lot of businesses, a lot of charities in this case, but a lot of businesses where the leaders are not finance savvy, and they are not ants. They're not MBAs, but they still need help running their business. They need to do reporting. They need to do planning, you know, manage their business, control the finances. So, I just thought, you know, just started thinking a lot more about what does a small business need? What does a leader in a business need to make great decisions, run the business? And how could we get them a tool or some software that doesn't cost hundreds of grand every year but is accessible, a nice, low price point, and really easy for them to use? And that's the problem that I thought about for a long time. And ultimately, that's what we're trying to work on with Blox. WILL: That's amazing. I used to work at a nonprofit. And I those days of, like, because I wasn't an MBA, like you said, MBA finance and just trying to figure out numbers. I don't even the software we used. SIMON: [laughs] WILL: But it was old and very hard to maneuver. [laughter] SIMON: Oh yeah. WILL: It was harder to maneuver than spreadsheets. And I was like, ahh, this is a nightmare. So, this is amazing that you're doing that. Can you tell us more about how Blox solves that issue? Because it sounds like it is a tween of big software that's for enterprise companies and spreadsheets. So, it's kind of in the middle;