Earlier this week, I talked with a B2B SaaS CEO whom I greatly respect. He told me about the rollercoaster he’d been through recently as his business got stuck meeting growth expectations.
The only way out was: more funding to make the necessary turnaround investments, reorganize and avoid running out of runway.
I have nothing against funding as long as it’s a choice – not a necessity. But more often than not – that’s not the case. It becomes an all-or-nothing thing. And it drives people nuts.
Hence, I asked him the question:
Why do you believe so many SaaS businesses end up in this vicious cycle of desperately chasing funding?
Here are some of his answers:
👉 – “We were trying to aim too wide. Just because we can solve unique problems in multiple industries doesn’t mean we should. It’s not scalable; hence there’s no leverage.”
👉 – “Positioning was off (or non-existent) – This created confusion and mismatched expectations, and an inability to develop fans from the start”
👉 – “Lack of alignment across all departments about what business we were really in – leading to internal confusion and lots of external repairing”
Key takeaway: This all comes down to deliberate focus
🔥 – Acknowledging that you can’t please everyone – and that’s OK.
🔥 – Acknowledging that taking position makes the business stronger in all aspects
🔥 – Acknowledging that a business is as good as the sum of it’s components. Aligning everything and everyone results in velocity
My question for you to reflect upon today:
If you look at the funding needs of your SaaS business – is it driven by desperation or from a source of strength?
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