The annual SaaStr conference was in full swing last week. Were you one of the 10,000 B2B SaaS and subscription business leaders in San Francisco learning the latest SaaS trends, insights and best practices? As an entrepreneur, and leader of a SaaS-based company, I’m in the same position as many of the CEOs/founders attending this event. And like you, I can relate to placing most of your focus on growth, sales and marketing – especially at opportune events like SaaStr.
Chances are you’ve either experienced first-hand or heard through the grapevine, that most billing, integrated financial and ERP solutions fall short on financial metrics and analytics. This makes it difficult, if not impossible, to gain the real-time insight you need to grow and stay up to speed on the overall health of your business. With our new API, we’re solving this problem by extending the benefits of SaaSOptics to market-leading solutions and making it possible to access the deep insights into financial metrics you need to generate revenue and accelerate growth.
In many ways, operating a SaaS business globally can be easier than running one with a traditional business model. However, in other ways, it presents new considerations and challenges to overcome. For example, one-time payments only need a foreign exchange calculation at the time of purchase. With a recurring revenue business model, you must account for foreign exchange fluctuations at each invoice and payment, whether you bill monthly, quarterly or annually.
We are excited to announce today that the SaaSOptics subscription management platform now includes multi-currency management and reporting, meeting several significant challenges for our customers operating globally.
The SaaS and cloud markets are becoming increasingly global. Did you know that a recent report by Forrester Research found that the public cloud market is on pace to be $236 billion by 2020. Despite this enormous opportunity, SaaS businesses are challenged when it comes to global expansion due to the pure complexity of multi-currency accounting.
The financial mission of most early stage businesses is pretty simple, and there are usually 3 simple rules: don’t run out of money, don’t run out of money, don’t run out of money.
Eventually, your early stage business breaks through and becomes an emerging business. At this point, you are interested in growth capital, and growth capital becomes interested in you. This capital may come through bank financing, angel investment, venture capital, strategic investment, or even through acquisition.
The providers of growth capital are investing for a return, and the differences between the funding terms from these different sources correlates to their unique position on the spectrum of risk.
Several months ago, I met an entrepreneur with a high-growth SaaS business. Being in the business of selling tools to measure subscription business metrics, I jumped right in, my mind set on a quick close.
I've been in sales for over 25 years, so I proceeded to knock down objections. The first, second, third objections came, and then more. Eventually, I realized there was no pain and backed off. Out of his mouth then came, "We'll start to look at metrics when we slow down, when we hit a month that wasn't bigger than the previous month."
To paraphrase Chris Rock, "you can drive a car with your feet, but that doesn’t make it a good idea." Similarly, sure, you can run your SaaS financial operations with spreadsheets, but if you do, you are injecting risk into your business. To be clear, spreadsheets are hugely powerful tools. We use them frequently, but they should be a complementary "tool" and not viewed as a "system" nor a "system of record."
For those of you who are already living with this issue and don't want any painful reminders, save yourself some time and contact us now to talk about how we can help. For those of you looking for information on what to expect, read on.
Introducing guest blogger Michael Schwerdtfeger, Principal at NewCap Partners, an advisory firm that specializes in middle market mergers and acquisitions. Over the course of his career, Michael has completed well over $2 billion in transactions, across a wide range of industries.
Do You Smell Smoke? Here are four ways that SaaS companies torch their own deals during mergers and acquisitions:
When it comes to SaaS, most people think of MRR as simply "Monthly Recurring Revenue." What you may not know is that despite having the word "revenue" in it, MRR actually is not revenue. To better understand MRR, think of it as "MRRR" – monthly recurring revenue representation. While MRR is a normalized number that provides a good representation of your monthly recurring revenues, it isn’t actual revenue that can legitimately be recognized under GAAP.
Last week, SaaSOptics attended and presented at Venture Atlanta, the premier investor conference in the Southeast. The conference is attended by technology entrepreneurs and investors from across the country who are interested in supporting emerging technology companies. There are also two categories of companies that are selected to pitch to these entrepreneurs and investors. SaaSOptics was proud to be selected as a Venture Spotlight Company.