🔆 Scaling challenges

One area that’s critically important for any SaaS business is its ability to scale. If scaling feels hard, very often, poor positioning is a cause.

 

Let me illustrate this.

 

Scaling is, in essence, about this: Revenue and profit increase without a substantial increase in resources. 

In other words – While adding customers and revenue exponentially, costs should only increase incrementally, if at all.

 

The opposite is often the case 

  • Making marketing and sales repeatable feels hard.
  • Product implementations remain unpredictable.
  • Customer success sometimes works well but is often challenged.
  • ARR per employee remains far below the benchmark (or even declines)
  • and so on.

 

And don’t get me wrong. You might still be growing. But that doesn’t mean you’re scaling. 

Sharpening your positioning can do magic to turn this around. 

  • It helps fix a lack of cohesion.
  • It focuses the business on what works consistently.
  • It gives every individual direction to make decisions to aid scale.

 


Question for you to reflect upon

Do your costs increase linearly as you grow your SaaS revenue? What if it increased incrementally? 


 

Be Remarkable

 

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About the author

Sales Pitch

Ton Dobbe is a former B2B software product marketer who's on a mission to save mission-driven SaaS CEOs from the stress of 'not enough' traction. He's the author of The Remarkable Effect, the host of the Tech-Entrepreneur on a Mission podcast, and writes a daily newsletter on the secrets to mastering predictable traction.