Remarkable Software companies create new value possibilities.
When we started our SaaS business, this was our core focus.
Led by a strong vision, the goal was to create transformative change.
But all too often, keeping this focus becomes a challenge. Usually, this has nothing to do with us but with what’s happening around us. Just think about what’s happening around us. We’ve hit a trident of recession, inflation, and market correction simultaneously. And this hasn’t happened since the 1930s.
So, without realizing it, we become led by the short-term. And before we know it, we’re working on things that prevent us from achieving our long-term growth and keeping our edge. Dangerous.
The question becomes: How to avoid this?
It’s precisely this question we dug into yesterday in our weekly B2B SaaS CEO mastermind.
It starts by catching the signals – what’s become more challenging the past quarter – and what’s behind that? Some examples:
- Well funded Startups that become unpredictable to work with due to the fact many of them burned too much cash, failed to hit numbers, can’t refund, and occupied with layoffs
- Large accounts show similar challenges. Big names are holding off on expenses this quarter and deferring deals in perpetuity.
Knowing what to avoid gives perspectives on what to focus on, i.e., the opportunities. Examples mentioned:
- Leadership development is in vogue – companies realize they need better leaders to become/stay high-performing organizations.
- Investments are shifting towards increasing revenue, improving service & customer satisfaction, and opportunities to cut expenses.
- The severe layoffs have made the remaining employees more valuable – this smaller group must carry more work responsibilities.
It provides opportunities to grow, survive, and become stronger altogether. How?
- Seriously assess where to niche down, i.e., who are you more valuable for (and for whom less)
- Re-take position to stand out around the critical investment areas
- Revisit your messaging to address the new realities of your ideal customers.
- Bet on unit economics – and focus on extracting the most value per unit of what you’re selling
- Reshape your roadmap to prioritize features that extract more $ per feature right now.
- Shift your marketing budget towards the areas where you can maximize Marketing $ return short term.
In short: niche down and double down on those customer groups where you can make the most significant difference. Say no to the rest.
Stay focused on what sets you apart, and keep your eyes on the 10-year path. In light of your 10-year journey, this period is just a hiccup in the plan. Don’t panic.
Question for you to reflect upon:
What’s the #1 opportunity for your SaaS business to avoid becoming led by the short-term? What should change to capitalize on that in Q1?
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