Revolutional Growth for RevolutionParts + Nimbus Legal
RevolutionParts has created an incredibly easy eCommerce solution for car dealers to sell parts online. Founded in 2013, the company bootstrapped its’ way to fast, sustainable growth in the auto market. Today, with 65 employees and growing more than 50% a year, RevolutionParts is enjoying the excitement of scale, and also enduring its’ challenges.
Andreas Ronneseth is the co-founder and Chief Strategy Officer of RevolutionParts. Part of his day-to-day is working with outside counsel for everything from HR to sales contracts. “We’ve been very lucky and we’ve worked really hard to get the company here, especially without venture capital. Now that we’re in this phase of growth, we need more expertise in every part of the business, all of which touches legal.”
This has become especially prominent as the company embarks on more enterprise-size deals that require sophisticated contract negotiation. “We found ourselves constantly tapping our law firm to review contracts, and of course asking them not to spend hours and hours on it because it cost so much. It was a struggle to know if we were giving contracts the attention they needed, because we were trying to stick to a budget, and wondering if this would mean we were leaving opportunities on the table.”
With legal needs and invoices increasing, and in a very unpredictable way, legal matters had become a stressful aspect to running the company. Ronneseth felt he had become a bottleneck to growth. He needed to spend his time focused on business development, not the language in contracts. It was right about this time when Nimbus Legal launched in Phoenix, where RevolutionParts is based.
A Revolutionary Idea
“We started working with our Nimbus GC about a year ago and it’s been game changing. Before Nimbus, we were hiring a lot of outside counsel for various legal matters. None of them really understood our business. How could they? They were limited to the billable hour and we were just one of many, many clients.”
Ronneseth was feeling that lack of inside knowledge. Attorneys they worked with knew their areas of law really well, but they often struggled to apply it to the specific nuances of the RevolutionParts business.
“Service from traditional law firms felt cookie-cutter to me. I wanted an attorney who would take the time to get to know our culture, our customers, and our position as an eCommerce platform in the auto industry. I needed more personalized service, and I really needed a more predictable legal bill.”
Nimbus Legal was exactly what RevolutionParts and Ronneseth needed to go from startup to scale more efficiently. Today, Ronneseth spends considerably less time dealing with legal matters, and is freed up to focus on keeping the company’s growth rate at 50% year-over-year. He can now give his business development team the attention they need to be successful.
The other big benefit for RevolutionParts is the ability to project and budget for legal costs. In the past, invoices from law firms were constantly up and down, some of them downright surprising. This was becoming increasingly stressful for the company. There’s no question RevolutionParts is now saving money in legal costs with their outsourced GC, but more importantly they’re able to project what legal expenses will be each year.
“I think what Nimbus Legal is doing is amazing. Having someone dedicated to our business, and bringing that expertise and inside knowledge, has been extremely helpful. Our Nimbus GC looks at our business and our risk holistically. It’s great to have a trusted advisor to turn to for all of these things. Nimbus will absolutely be part of our continued growth.”