For early stage Software-as-a-Service companies, simple, easy-to-use accounting software makes sense. Many startups combine a cloud accounting platform like QuickBooks Online with a subscription billing tool like SaaSOptics. This can be an effective...
SaaS metrics are more than cookie-cutter formulas for tracking high-level KPIs. They are dynamic growth tools that should inform the decisions your leadership team, management, and board make on a routine basis. Used well by your SaaS business, they...
Let’s face it: As the CEO or leader of a growing Software-as-a-Service (SaaS) business, you have your hands full. Whether you’re busy acquiring customers, onboarding new customers, retaining existing customers, hiring to meet anticipated demand,...
Spreadsheet financial models for SaaS companies stink, whether built in Microsoft Excel or Google Sheets. There, we've said it.
That doesn't mean that spreadsheet models don't provide some value in the very beginning stages of a SaaS business or...
As the founder, CEO, or key stakeholder of a SaaS business, you need a clear picture of the day-to-day health of your business. In theory, SaaS metrics can satisfy this need with basic formulas for calculating a variety of performance data. In...
Why do startups flop? The team at Startup Genome found a common thread. A survey of 3,200 startups showed that, of the companies which crumbled, 70% of themtried to scale too quickly.
When it comes to key SaaS metrics, Annual Recurring Revenue (ARR) is the one every stakeholder has their eyes on. When a SaaS company is experiencing ARR growth, it’s a signal to founders, CEOs, investors, and others that the subscription business...
Lifetime Value (LTV) seems like a straightforward SaaS metric. Its job is to simply measure the amount of revenue generated over the duration of a customer relationship. But, as is the case with many other SaaS metrics, there’s more to it. A lot...
Your SaaS company is poised for rapid growth. As you scale, solid financials are the key to growing efficiently and maximizing valuation—but your finance department is already getting stretched thin. You’ll need more resources, more expertise, and...
Your SaaS business is gaining traction and you’re outgrowing the basic accounting software that’s gotten you this far. With recurring and non-recurring revenue streams, varying contract terms, and higher volume, revenue recognition has become a real...
For a SaaS business, knowing exactly when and how much to invest in growth is critical to success. Overspending in areas like sales and marketing will cause a SaaS firm to burn through cash too quickly. While it’s tempting to pile on sales reps in...
Every SaaS founder wants to maximize their company’s value—a goal that requires high performance in two key areas: growth and profitability. In fact, the more you can demonstrate a combination of revenue growth and operational efficiency, the better...
One of the most critical decisions a SaaS founder or CEO must make is when to invest in scaling the business. When the timing is right, a strategic investment in sales and marketing will fuel exponential revenue growth. But, when the timing is off,...
Picture this: you walk into your monthly board meeting, exchange hellos, and then you get hit with this question — “what did we book last month?”
Both your CEO and Head of Sales each give different answers, and it becomes clear to your board and...
The financial priorities of your SaaS business will change as you move through each growth stage. In the initial phases, you’ll likely be working toward product/market fit, with a strong focus on bringing in customers, regardless of the acquisition...
The CEO of a high-growth SaaS company has plenty of things to worry about on a daily basis. One of their biggest anxieties, however, can simply be the fear of running out of money. One successful client SaaS CEO recently characterized that sense of...
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