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MenuWhat is a best practice roadmap to setting up a SaaS company?
Domain purchase. Software deployed. Customer acquisition strategy? Go to market strategy? Free at outset or charge nominally for beta users? Business partner strategy? Roadmap available? Metrics and KPI targets?
Answers
"What type of car should I buy?"
As you can imagine, the answer to this question is highly dependent upon a number of factors.
Similarly, you're asking some very specific questions. I anticipate that a number of experts here would love to help you with answering with specific questions -- but those answers are highly dependent upon your unique needs.
That said, for many experts, this type of consulting is their livelihood and should be compensated.
The advice you will get for free is likely to be very general and may not suit the specific needs and targets of your company.
In general, your roadmap will concurrently address your funding, customer acquisition, development, and growth opportunities. It is best to have "poor, good, better, best" targets and contingencies in each of these categories. Lastly, your metrics and KPIs are uniquely dependent upon the objectives of your business. For example, a well-funded operation has very different KPIs and metrics than a boot-strapped enterprise. One is not better than the other, but the characteristics of the operation dictate these types of measurables.
I, along with many others on this forum, would be happy to discuss specifics with you. All you need to do is book an appointment for a call.
All the best,
-Shaun
Howdy. Well you have all the major strategic points listed. What is remaining is the tactical.
Those answers are going to be unique depending on who your target market is, what your product/service is, what your capital resources look like, etc.
Got a bit of experience in sussing this all out if you would like to schedule a call.
My best advice would be to get to MVP as early as possible.
When I say MVP I mean functional, not beautiful. It just needs to show basic functionality and can be worked on and enhanced from there.
Your SaaS product needs to get in the hands of users as soon as possible as they will show the direction it should take or that it's not worthy of their time (and/or money).
Related Questions
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What are some tried-and-true metrics for enterprise/ARR-based SaaS companies?
In my experience, the longer sales cycle requires more attention. The metrics will be unique to your business, but you can't go wrong with these: Marketing & Sales Metrics Look at metrics that will help you scale and project growth, and then accelerate opportunity to close velocity #s and conversion rates of marketing qualified leads (MQLs) #s, time, and conversion rates of MQLs to sales qualified leads (SQLs) #s, time, and conversion rates of SQLs to opportunities #s, time, and conversion rates of opportunities to sales Customer Success Metrics An ARR SaaS business may have a guaranteed 12 month customer lifespan, but that doesn't guarantee the customer actually uses the product and won't churn at renewal time. Measuring product usage will help you discover patterns that cause churn, increase the perceived value of the product, and improve the customer experience. Financial Metrics Each Reporting Period (I'd recommend monthly) look at Values & Rate of Change Customer Acquisition Cost Average Value of a Customer look at Values, % of total, & Rate of Change Revenue from New Subscriptions Revenue from Renewal Subscriptions At the early stage, businesses will see new Subscriptions significantly outpace renewals. As the business matures, the % of total ARR from New Subscriptions will begin to decline, assuming churn rates are good.RE
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Are there standard ratios that are used to calculate first level support staff needed for a SAAS product that is a non-technical product?
Hi. I'm a Business Intelligence consultant with most of my customers being call centers. There are definitely guidelines you can apply but it will be based on several factors. Your question references ratios, which I assume means you would like to know how many agents per customer. That number will vary greatly depending on a number of other factors including: -what is your ASA target (Average speed of answer)? -what percentage of calls should meet the ASA? -are their penalties below a certain threshold (if less than 80% of calls meet ASA in 24 hours, for example) -how long are calls waiting when they don't meet ASA? -what is the call distribution by day of week, time of day and holiday v. non-holiday. -what is the average call duration? -what is the % of calls requiring escalation or call back versus calls resolved on first contact? To simplify it though, the two most important (IMO) will be call volume and your target for ASA (assuming you aren't answering then putting them back on hold, etc). To simplify though, the top 3 are: ASA, Call length and call volume. Regardless of the size of customer base. A good reporting system that combines live metrics and daily/weekly/monthly analysis will help a great deal. Feel free to set up a call if you'd like to talk about this in more detail.RL
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What is the average pre-money valuation of a enterprise/SaaS stat-up that is pre-revenue?
There is no valuation until you sell something. An idea or a company is only worth what its sales are. Once you have your initials sales, sales strategy and forecasting length (ie 9 months from first customer lead to close) then you have a formula for valuation. Valuation for start-ups is generally 3.5 x last years sales model should be the growth factor. When you are looking for investors, you will want to have atleast 9-18 months of SALES, not just pipeline and they will be looking at 5x revenue for a 3-5 year payback.TP
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I have a great app idea, and I need help bringing it to life.
I'm not sure if this is how you imagine this world to work, but at least according to the order you wrote it "raising funds" was first. In reality it should actually be one of your final steps of the stage you are at right now. It may even come after a year or two! So you have this great app idea, and you're looking for a place to start... Don't! Don't start yet before you decide whether you have what it takes to get into a roller coaster that can ruin your life and make you miserable! Not trying to scare you but I think most people only hear about these great success stories. They have this dream of maybe, possibly, becoming the next big thing... Because they have the best idea for an app... You don't hear about the failures so often. And even if you do, you don't hear about what the founders of these failing startups had to go through. Truth is you are most likely gonna fail. And I'm saying that without even knowing what your idea is. There are so many barriers on your way that even a great product with a great team is likely to fail. Some people would say "I'm not afraid of failing", "It's good to fail cause you learn", "Failing will make me stronger for the next startup". That's somewhat true but it doesn't mean that failing is easy. As oppose to what people sometimes say - you do not want to fail! It's very painful!!! You have to understand what failing in a startup means. You can work your a$s for 2-3 years, have little to no salary, waste other people's money (most likely your friends and family first), lose friends, fight with your partners, your family, your spouse, devote 20 hours a day for your startup all this time, forget about the little and big things you used to enjoy in life, and only then, after debating 100 times whether you should quit or not, you finally decide that it's not gonna work and you've failed. Disappointing your family, your investors, yourself. Trust me it is painful. Are you sure you wanna do this to yourself? If yes, give me a call. I have the experience you need! From idea stage, to proof of concept, to running beta tests, getting millions of millions of users in ways you can't even imagine, creating features and experience that will make these millions of users completely addicted and viral, raise money in a smart way, hire the right people, find a great co-founder, succeed, fail, be persistent, and enjoy the ride! Good luck, RoyRM
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How can I get a list of startups (SaaS, software, online gaming) which are unfunded, seed funded or series A funded?
Use Mattermark.com to find them. They have a 14 days free trial. The tool will let you filter by founding and type of company, so it will probably give you what you need.JC
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