Your (Belated) SaaS New Yr’s Decision: Add a Layer

I agree with most Begin-Up Truisms.  Among the best ones is Don’t Chase the Shiny Penny.  Double Down on What Works.

For positive that is true in SaaS.  In case you’ve bought an excellent factor in a sure vertical, double down there.  When you’ve got mid-market prospects however not many within the enterprise or low-end, focus there much more this 12 months.  And so on., and so forth.

And but …

What tends to occur for many SaaS companies at the same time as early as $2m ARR or so, is that they get a core engine that’s working.  At the very least at 20,000 ft.  It’s laborious, sure.  However assuming you execute, and the leads proceed to come back in, and so forth. … you need to develop, say, 100% over the following 12 months.  Based mostly simply on the rate charge from the previous X months.

I fully agree you need to spend 90%+ of your time simply doing what’s working, solely higher, if you’re at $2m ARR or greater and rising 80% or extra YoY.

However right here’s the factor.  SaaS Compounds (extra on that right here).  Think about for those who simply added one additional layer, one additional phase, one new strategy to promote, one product extension … that simply would possibly add one other 10% progress this 12 months.

Now, that received’t imply a lot this 12 months, and it might be distracting at first.  However look what occurs as SaaS compounds:

The distinction is epic down the street, as you march towards the Massive M&A supply or IPO.  Epic.  Simply from one little new initiative. 😉  Think about for those who do that yearly, and half of those initiatives work …

So the very last thing I’m suggesting for Your SaaS New Yr’s Decision is to get distracted, or take your eye off the ball.

However I’m suggesting, as founders and execs, you concentrate on doing (x) one new factor that (y) builds in your core, doesn’t basically change what you’re doing however (z) may inflect the curve 10% and never be terribly distracting.

Let me recommend some concepts … so as to add this quarter:

Add an Outbound Gross sales Workforce if You Don’t Have One.  Sure, Even In The Age of AI.  Crappy outbound could also be “lifeless”.  However nice outbound nonetheless works in addition to ever.  Particularly in case your ACV is excessive sufficient, outbound will nearly work, performed proper.  We’ll do a put up on this quickly.  Have you ever tried it?  It doesn’t should make the corporate.  A small crew simply has to generate sufficient new enterprise so as to add 10% to the highest line.  Extra right here and an awesome instance of how Rippling nonetheless crushes outbound right here:

Add A Second Core Product.  You in all probability aren’t prepared earlier than $10m-$20m ARR to do that, however by then it’s price considering on.  We’ve discovered that the important thing to success in later phases is being multi-product for nearly all SaaS leaders.  The query is simply when.  It’s in all probability by 1,000-10,000 prospects (a variety, I do know).  What we do know is that it’s earlier as of late.
Add Skilled Providers, for Actual.  Yuck, you say?  Skilled providers?  Properly, enterprise prospects are joyful to pay for them.  You may pack one other 20-30% of income onto any enterprise deal for those who do it proper right here.  Sure, I do know it’s not recurring.  However you’ll get it in new offers yearly.  Rent a Head of Skilled Providers and cost for Professional Providers.  It’ll work in any six-figure deal, and plenty of five-figure offers.  Extra right here.
Do Your First Buyer Convention.  And Invite All Your Prime Prospects, Too.  It doesn’t have to begin off fancy.  Lease a ballroom and even a big convention room in a pleasant lodge. And invite all of your prospects and high prospects collectively for a half-day to begin.  Magic occurs if you get them collectively.
Add a Extra Enterprise Version.  Add a couple of extra options, extra safety, extra no matter, so you may make your product Extra Enterprise.  And cost for it.  It’ll in all probability work.  A bit extra right here.
Add a Actual VP Enterprise Dev.  I do know you may have companions.  However are you taking them significantly sufficient?  Do you may have somebody whose full time job it’s to make your companions profitable?  It’ll in all probability repay.  I see method too many founders winging partnerships themselves for method too lengthy.  After getting even 1-2 severe companions, they deserve somebody full-time serving to them succeed.  And also you maximizing the income from them 🙂
Begin Visiting 3-4 Prospects a Month in Individual, and Doing Roadmap Displays.  This all the time works.  Go to your high prospects and simply share what’s approaching the roadmap and ask them for suggestions.  You’ll discover additionally they churn much less and purchase extra if you do.  Extra right here.
Add A VP Buyer Success Earlier.  Your churn could also be low.  However what if it have been 10% decrease?  It’s not that onerous.  Rent a seasoned VP of Buyer Success.  Your churn will go down, and your upsells will go up.  A bit extra right here.
Add Somebody to Personal Upsells.  Even when the Buyer Success factor is working, do you may have somebody, or a crew, devoted to maximizing land-and-expand and/or upsells?  No?  You may simply inflect the curve one other 10% right here.
Add Proactive Buyer Success / Retention for Your Smallest Prospects.  You in all probability bathe your largest prospects with love.  However do you do such an awesome job with the smallest ones?  Most likely not, even when you’ve got a Buyer Success crew.  Add somebody to simply deal with the very smallest of your prospects.  Present them respect, and a few love.  Churn will go method, method down right here too.  This doesn’t imply not use AI.  However what it means is rent somebody whose solely job is to make your smallest prospects happier. And improve NRR there.
Begin Doing Buyer Advertising and marketing for Actual.  Sure, you’re doing quite a bit to market to new prospects and potential prospects.  However how about to your present base?  Over time, they’ll be the supply of most of your new leads, and your progress.  Extra on that right here.

None of those initiatives requires any type of tilt, or most often, any actually dramatic change.  And I wager no less than a couple of of them would possibly work at your organization.  Choose 1-2 to implement — this quarter.

The important thing to all these potential initiatives is to simply attempt to get $1 again for each $1 you spend.  It’s an funding.  Your core engine does have to have optimistic unit economics.  Your additional efforts on the incremental buyer actually ought to simply cowl prices (extra on the incremental buyer right here).  Anticipating earnings right here is being method too conservative.

I do know you barely have time to service the leads and prospects you have already got.  I do know you may have a 3+ 12 months function backlog already.  I do know.

However take a pause now at the beginning of a brand new 12 months.  Discover a method so as to add a comparatively low-stress, low-dilution layer to what you might be doing now.  It received’t materially change your MRR at first.  However it’ll have a magical impact by year-end.