I didn’t want to shoot this video. Honestly, I didn’t even think it was necessary. I assumed that all scaling SaaS founders must be doing accrual accounting, right?
I don’t think a SaaS founder should be their own accountant. I’m not, and I wasn’t for all 5 of my companies. Your job is to get really good at running a business and making money. That’s it. But to do that, there is ONE type of accounting that I believe you NEED to understand: Accrual Accounting.
It’s the thorn in every SaaS founder’s side… The number that keeps you awake at night: Your churn rate. Churn equates to invisible dollars that slip through your fingers. The lower that number, the more successful and exponential your capacity to grow. But how exactly do you measure churn?
When I was 29 years old, I was pitching to investors for funding. I’d breezed through my pitch deck, million-dollar smile on my face despite my shaky nerves when they asked: “What’s your CAC?”
I can tell if your business is going to scale successfully by asking one question: Do you have a business coach, mentor or advisor? If your answer is no… I’m worried for you. Hear me out. Succeeding in business means making the right decisions frequently. I’ve seen small companies dominate in niches that were owned by big-business giants simply because they made better decisions.
“HELP! I’m losing customers in the pandemic!” As a SaaS Coach, I worked very closely with a lot of software founders who are nervous that their businesses won’t ever recover from coronavirus. Customers are cancelling, accounts are drying up, and prospects are turning into dust. We have never seen a global economic meltdown quite like this one… so the concern is 100% justified. But listen to me: You are not powerless. Today I’m going to give you a crystal ball.
Take everything you think you know about sales teams… And get ready to throw it out the window. I mean it. Sales, as a concept, is still dragging a lot of dead weight from old-school sales gurus chanting “ABC - Always Be Closing!” The SaaS business model is being polluted by these old ideas that just don’t work. For decades, we’ve needed a fresh new take on sales training strategies...
“10x more money per customer?” Cha-ching! Moving your business upmarket can mean massive revenue boosts. It’s where the big-bucks get made. Upmarket customers are the affluent, enterprise-level businesses that demand more from your SaaS... but also write bigger checks without even blinking. By moving upmarket, your company's growth can scale quicker from fewer customers. I bet you’re already thinking: “SIGN ME UP!”
Alright... Time to let the cat out of the bag: I’m a huge Elon Musk fan. Not because he’s in the limelight most weeks, but because of how he thinks about business. Elon thinks laterally. He comes at business problems from obscure angles and I think that’s the secret behind his genius. If you could apply even one-tenth of his innovation to your business, you’ll leave your competition in the dust and future-proof your growth.
Today, the tables have turned and the microphone is being flipped. Instead of interviewing a SaaS founder… …a SaaS founder is interviewing me! I’m pleased to share with you a special interview hosted by Liam Martin, co-founder of Time Doctor and co-organizer of Running Remote. Liam is a successful entrepreneur that helps remote businesses manage their teams efficiently. A service that couldn't come at a better time with remote work taking precedence in today's world of economic uncertainty. He’s also