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
Should I exit or should I stay the course? It’s THE single biggest question that nearly every successful founder will eventually be met with. And after taking my coaching clients for a private sit down with Chris Savage at Wistia… … it got us all thinking about the best ways to evaluate whether or not it’s time to exit and start fresh... or buckle in and continue down the path.
300K/year. That’s the magic revenue number that a super high-performing expert or entrepreneur can expect to reach on their own before they smash their head against the glass ceiling. Doesn’t matter if you have your alarm set at 4:30am. Doesn’t matter if you grind it out through nights and weekends. Doesn’t matter if you throw down a bunch of brain drugs with bad names while looping binaural beats through your headphones.
Ready for a shocker? Stalled growth is rarely a product, marketing or sales problem… It’s a founder problem. And more specifically, it’s a failure to think strategically instead of tactically. Yes, tactics matter. But only if they’re guided by the RIGHT strategy at the RIGHT time. If you just keep repeating the same tactics over and over again (or adding random ones to the mix just because it "feels right" and "other people are doing it")...
I recently had an unfortunate Growth Session with a SaaS founder who was running his company straight into an iceberg. … an unforgiving 25% churn rate … about 3 months cash runway … total mis-management of capital Instead of fixing the leaks (churn), he insisted on keeping the sales and marketing engines on full blast. Essentially a great way to crash into that iceberg even faster. 😬 While it’s usually great advice to maintain a growth mindset (I’m all about
If you’re in the software game for the long haul, at some point you’re going to have to disrupt yourself. This could mean announcing major price hikes, firing most of your customers, drastically trimming your product line, and even shifting core product functionalities. Scary? Of course. Necessary? You freakin’ bet.