Establishing a GTM Cadence & Drive Execution
Scaling a SaaS business can be an exciting and challenging time for founders. After achieving product-market fit, the next step is to focus on operational ruthlessness and establish a business cadence. Here are the four principles that are essential for scaling a SaaS company effectively and ensuring everyone is pushing hard without burning out.
Principle #1: Financial Planning
Having a proper financial plan is crucial for scaling a business. Whether you bring on a fractional CFO or a full-time CFO, having someone who can guide you through the numbers is essential. TK shares his personal experience of struggling with financial plans due to his "numlexia" (a version of dyslexia for numbers) and the importance of relying on experts in financial management. He recommends a great CFO firm called Attivo Partners for SaaS companies.
Principle #2: Pipeline Coverage
Pipeline coverage is the lifeblood of every SaaS business. It's important to aim for a 3X to 5X pipeline coverage to ensure you have enough leads and opportunities to hit your revenue goals. TK emphasizes the need to review pipeline coverage on a weekly basis to understand if you're generating enough leads and awareness, and to make any necessary adjustments to your strategy.
Principle #3: Sales Pipeline and Deal Review
It's crucial for the CEO to be involved in the sales pipeline and deal review process. By participating in these reviews, you can better understand your customers, identify areas where executive support might be needed, and make informed decisions about deal progression. TK recommends conducting these reviews on a weekly basis to ensure deal hygiene and accurate forecasting.
Principle #4: Product Roadmap Review
Scaling a SaaS business involves finding a balance between stability work (bug fixes, improvements) and momentum features that drive the product forward. TK highlights the importance of agility and speed of execution and suggests conducting a product roadmap review on a monthly basis. This review helps ensure that product development is aligned with the company's growth goals and allows for adjustments to be made to optimize stability and momentum.
In Conclusion
By following these four principles and establishing a proper business cadence, SaaS founders can scale their companies effectively.
If you're in the process of scaling your SaaS business and want a framework to guide you, I’ve created the SaaS Scale Program. This program provides CEOs with a growth strategy framework, tools to understand competitive dynamics, and guidance in up-leveling their strategic narrative.
Scaling a SaaS business requires operational ruthlessness, financial planning, pipeline coverage, sales pipeline and deal reviews, and product roadmap reviews. By implementing these principles, SaaS founders can establish a business cadence that drives growth and success.