Scaling First Revenue: Don’t Forget ARPU Expansion.

Most Enterprise markets are somewhat finite regarding the number of customers: F1000 by definition has exactly 1,000 companies (d'oh!). Getting new customers is good. That usually comes in cycles: yay, the first customer! Oh no, who's next? I think I figured it out.... Darn copy-cats! You will hit the point where competition isn't sleeping anymore. … Continue reading Scaling First Revenue: Don’t Forget ARPU Expansion.

The Most Important Executive Besides the CEO.

Up to a year ago, I would have said that the CTO is the most important person after the CEO for enterprise software startups. I'm a tech geek, so that's natural. Without a working prototype or technology, there is no high-tech startup, so for most high-tech startups engineering is pretty important, obviously. By now I … Continue reading The Most Important Executive Besides the CEO.

Scaling First Revenue: IT Infrastructure.

Enterprise IT Infrastructure has probably the most disciplined budgeting process and most rigorous procurement department. Not that they are always on target, but they have a very clear understanding of the different buckets, ROI, impact on operations, and necessary multi-vendor management. Enterprise IT infrastructure organizations know the percentage their enterprise wants to spend on IT … Continue reading Scaling First Revenue: IT Infrastructure.

Production, not Product, as Competitive Strength

Talk about burying the lead: "The competitive strength of Tesla is not going to be the car; it's going to be the factory," Musk said. https://arstechnica.com/cars/2018/02/tesla-loses-another-675-million-in-q4-its-biggest-quarterly-loss-yet/ Car manufacturers have known that for years (though some seemed to have forgotten about it) If you ever toured the factory floor of BMW in Munich, you know how … Continue reading Production, not Product, as Competitive Strength

Cloud Index: EBITDA Margins versus Revenue Growth

I got a lot of good feedback on my last post on SaaS: Should You Fix EBITDA Margins or Revenue Growth? The main criticism was that the companies of each cell were not true peer-companies and a such not comparable. I admit that perhaps it was a bad judgment using these companies to illustrate NTM revenue growth and … Continue reading Cloud Index: EBITDA Margins versus Revenue Growth

SaaS: Should You Fix EBITDA Margins or Revenue Growth?

First off: You should have a great product. It's pointless to try and "fix" revenue growth if you don't have a great product. But perhaps you have too many products, or your prospects don't understand what you stand for, or your operations are less than optimal. [At the end of this post I will include … Continue reading SaaS: Should You Fix EBITDA Margins or Revenue Growth?