3 Misconceptions That Slow SaaS Growth
People don't buy products, they buy outcomes. That is one of the key lessons that I've learned over the past ten years of selling technologies and working in accelerator programs.
While something tangible as a product is essential early on, it is sales and marketing that get the product out and acquire customers.
Did you know that 29% of startups fail because they run out of cash?
The key to success is to develop your customer base at the same time as you build your product. Before Sharesies launched, they had 10,000 subscribers which they collected well before they needed them.
The key to success lies in how fast you can get your product into paying customer's hands.
Early Stage tech companies need a faster, predictable way to generate revenue.
There are 3 misconceptions that slow SaaS companies growth early on:
1. The product will sell itself.
To get the critical mass of self-service clients for your SaaS to be selling itself is a long journey. This process needs a lot of refinement that hedging on this alone can lead SaaS down a long and painful death.
Ask any experienced business person, and they will tell you that having a great product is just the start. The best way is to learn some customer development skills and take ownership of revenue growth early on.
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2. The sales cycle will be quick.
In the beginning, everything will take longer than anticipated. And that is fine, its part of the learning. Without much sales training or a proven sales process, your learning can take a very long time.
I've seen founders run from meeting to meeting without ever getting close to the sale. On the other hand, one of my clients was able to close a deal within a week from the first meeting. You need to create a proven sales process.
3. People understand your product.
Features are a great way to gain functionality and provide additional value to your customers. The issue is that when we try to sell all the features, it makes your product very hard to understand.
Most of your customers will not have the same knowledge about your market as you do. The messaging needs to be congruent and straightforward across your entire channel selection.
In summary
It's easy to head down the wrong path without fundamental customer development skills. If it were easy, we'd all be running seven-figure SaaS companies.
You need to hone your sales skills and gain the right training. It will speed up your revenue growth immensely. Not only will it provide you with more cash to operate your business but it will also put investment terms in your favour.
Getting your sales metrics and process right will sway the odds in your favour.
Focus on customer development,
Flavio Hangarter
PS: Whenever you’re ready, I help clever founders to set up their sales and marketing systems, generate leads and close more sales.
There are numbers of ways I might be of help to you:
Create a product that stands out.
Get guided through the market validation process to help you figure out your market, your product and your business model.
Sales Strategy and Systems.
Crystalise your sales systems to attract more customers and grow your revenue with stand-out marketing.
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