I believe that great SaaS founders stay ahead of the curve. They’re the trendsetters, not the trend-followers, willing to try something new that makes waves in the market. The problem is that I’ve encountered many cutting edge SaaS businesses whose marketing efforts are too far behind the times.
“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.
When you first came up with a price for your SaaS product, I bet you did one of 3 things: Picked a low number because “you’re just starting out” Matched (or beat) a competitor’s price Chose a number based on what you would spend How would you feel if I told you to take that price… and double it?
How do you sell your SaaS? I mean… how does that process actually look, end to end, from meeting a buyer to pocketing a 7+ figure paycheck? Buying and selling a business isn’t like walking into a store, picking an item off the shelf and approaching the counter. There are valuations, due diligence, escrow accounts, handover processes, and more… before the massive paychecks can get cashed. It’s quite a process.
Being a venture funded SaaS founder is like walking into a casino to bet all of your employees’ salaries… every single day. Your decision to make one choice over another - bet on red or black - can cost your company millions. A few wrong bets can dry up your finances and run your company into the ground. But a few consecutive right bets can leave your competition for dead and give you the lion’s share of the market.
Investors WANT to spend their money. Yes, they actually want to write big, big cheques. For years, I believed that the stories of successful SaaS businesses that attracted massive investments were just myths. Unicorns. Until 3 things happened:
Are you competing on business models? You could be. Check out this quote: “Technology or not, every organization has a business model. Some are conscious of it. Some are not. Some try to change it. Some don't.” “Some just compete on products... whereas they could compete on superior business models.”
Recently one of my coaching clients exited his SaaS company for $90MIL. That was on $860K in monthly recurring revenues. Literally 100X his MRR became his selling price. In case that isn’t clear... He made $90 million in a single sale, walking freely into an early retirement. There is some serious money to be made in a well-built SaaS... When you hear stories of overnight millionaires, it’s often some tech founder who exited their company for a huge sale.
I’ve seen this happen before… A business that’s already growing decides to start their own SaaS. It always seems like a great idea. You’re already serving your customers, you know their problems, and you’ve got company resources to work with... So it’s gotta be easier than starting from scratch, right?
A few weeks ago, I hosted a meetup with my SaaS Academy clients in Boston (including a private sit down with the Hubspot product team). Most of my clients are non-technical founders who noticed a gap in the marketplace and went all in to capitalize on the opportunity. And while product management tends to be a major blind spot for most non-technical founders, this group walked away armed with the best practices from some of the world’s top SaaS companies