We recently had the privilege of joining Singapore’s SGTech and Microsoft to present a webinar, Cloud Appreciation Series: Scaling for Success.
While Singapore’s unique environment is a factor, the core of SaaS growth remains the same – focussing on what will grow your product and your customer base. That doesn’t just put you ahead of your competitors, it also sets you up for success come acquisition time. The rate of growth experienced by a SaaS company plays a key part in your multiple – that is, how the value of your company is determined. Research from Clare Capital tells us that if your growth is less than 15%, you can expect your multiple to be only three, compared to companies with a growth of 50% and above – this sale price could be based on a multiple of over 35*.
Our work with SaaS companies across the spectrum of growth has highlighted four factors that are key to growth.
Focus on what differentiates you
SaaS is a race – the faster you can build your product, the greater your advantage. There’s a lot you could be building, but scaling requires that you build only what you should. That means you avoid distraction and focus on your core differentiators.
You need to be always up, always secure and always fast
Some of the best tech products in the world are successful not just because they did something new, but because users could trust that their app would always be fast, available and secure. Users of smaller SaaS applications expect no less – you’ll need to get the basics right to even be able to compete.
Build for your market - think BIG
The products that grow are those that perfectly solve a user’s pain point and are set up for scale from the start. A company built for Singapore will look very different to one with its eye on APAC or the world. That means, before you begin, consider the markets you’ll be scaling into, and build for them and their core pain points. Understanding where you’re going right from the start will prevent you from rebuilding and redesigning your product or platform as you grow. It means you’ll remain the best solution for your markets.
Get help to accelerate
While growth is the goal, it’s also a risk factor. As you add users, the complexity of your infrastructure grows – meaning more opportunity for error and more time spent managing your platform instead of building your product and customer base. To avoid this, recognise the limits of your in-house expertise – do you have what it takes to manage your platform? Outsourcing expertise ensures you use your time efficiently and protects against failure that can damage your customer loyalty and reputation.
Build once, build well
Underpinning these factors is one core factor – your product. High-growth SaaS companies have software that is built efficiently, according to market needs and their unique differentiators. They also don’t waste time and resources on activities that don’t aid growth, outsourcing infrastructure management to experts.
Are you ready to grow? Contact our team for a no strings attached chat.