Loading stock data...
GettyImages 1410960970
Fund

TechCrunch+ Roundup: Mastering SaaS Sales and Tracking Expenses with Expert Insights on Bridge Rounds

Horizonstocks

In Downturns, Money Saved is Worth More Than Earned

As the market continues to fluctuate, SaaS startups are facing unprecedented challenges in maintaining their growth trajectory. With cash flow becoming a scarce resource, companies that focus on helping clients make incremental improvements to their finances will be better positioned to ride out the storm.

The Importance of Cash Flow Management

Sahil Mansuri, CEO of Bravado, highlights the significance of prioritizing cash flow management in a downturn. He emphasizes that ‘in a downturn, money saved is worth even more than money earned.’ This means that companies must adapt their sales strategies to focus on helping customers conserve resources rather than solely driving growth.

Shift from Growth-Driven Sales to Cost-Saving Strategies

Mansuri advises managers to shift their approach towards focusing on cost-saving opportunities for their clients. By framing their product as a way to boost revenue or cut costs, companies can help their customers find a budget and make the most of their available resources. This approach requires tailoring sales strategies to meet the unique needs of each client.

Multiple Strategies for Adapting Sales Approaches

Mansuri shares several strategies that managers can use to adapt their sales approaches in a downturn:

  • Tailor your approach: Understand the specific pain points and challenges faced by your clients, and develop targeted solutions to address these issues.
  • Show prospects unexpected opportunities: Highlight ways in which your product or service can help customers save money or increase revenue.
  • Focus on the money: Emphasize the financial benefits of working with your company, rather than simply focusing on growth.

You Don’t Need a Degree in Computer Science to Launch a Successful Startup

While having technical expertise is often beneficial for startups, it’s not always necessary. Magnus Grimeland, founder and CEO of early-stage VC firm Antler, notes that non-technical founders have enjoyed success by recruiting partners with relevant experience or hiring freelancers to help them develop an MVP.

Building an MVP without Writing Code

Grimeland emphasizes the importance of understanding your product, even if you can’t write code yourself. To build a successful MVP, you must answer three key questions:

  • What’s the problem?: Identify the specific issue or pain point that your product addresses.
  • What’s the solution?: Clearly articulate how your product solves the problem and meets the needs of your customers.
  • How will the customer use the solution?: Ensure that your product is user-friendly and easy to implement.

4 Principles for Building an MVP without Writing Code

To build a successful MVP, follow these principles:

  1. Partner with someone who has relevant experience: Collaborate with individuals who have expertise in software development or other areas relevant to your startup.
  2. Hire freelancers or consultants: Engage professionals who can help you develop an MVP, even if you don’t have the necessary technical skills yourself.
  3. Focus on user experience: Prioritize creating a product that is intuitive and easy to use, regardless of whether you’re writing code yourself.
  4. Be adaptable: Be prepared to pivot or adjust your approach as needed, based on feedback from customers and stakeholders.

Cash Flow Management in a Downturn

By prioritizing cash flow management and adapting sales strategies to focus on cost-saving opportunities, SaaS startups can better navigate the challenges of a downturn. By tailoring their approaches to meet the unique needs of each client and focusing on financial benefits, companies can help their customers conserve resources and thrive in a difficult market.

Building a Successful Startup without Technical Expertise

While having technical expertise is often beneficial for startups, it’s not always necessary. By partnering with individuals who have relevant experience or hiring freelancers to help develop an MVP, non-technical founders can still build successful companies. By following the 4 principles outlined above and prioritizing user experience, startups can create products that meet the needs of their customers.

Conclusion

In a downturn, money saved is worth more than earned. Companies must adapt their sales strategies to focus on cost-saving opportunities for their clients. By prioritizing cash flow management, tailoring approaches to meet unique client needs, and focusing on financial benefits, SaaS startups can better navigate the challenges of a downturn.