SAAS Business Cheat Sheet


SAAS Business Guide

Here is a useful SaaS Business (Software as a Service) business Guide. Compliments to Growth Hackers (Chart Mogul document) for putting this document together. It is aimed at providing a guide for setting up key performance metrics for effectively running and growing a business. The is very useful for a startup looking to measure and assess how effectively the business brings in revenue and mitigates churn. It is even more useful for a mature business that has an existing track record of growth history to model.

This framework does a good job of translating traditional business metrics (Lifetime Value, Churn Rate and Average Acquisition Costs) into a non-traditional business model.

SAAS (Software as a Service) business model key performance indicators.

How to Use the SAAS Business Cheat Sheet

These measures do not exist in a vacuum. There needs to be a context. More specifically, a successful business will need to achieve a certain size and scale to be able to generate meaningful measures of success. For example, if the business only has a couple of paying customers, the sample is too small and the measures would be highly volatile and skewed. In this case, it is best to not over-measure. In this instance, it is better to reach a significant critical mass in sales first.

A SAAS business can be both challenging and rewarding. An immature business may attempt to create a measurement framework and find it challenging. A good starting point is using spreadsheets with tools like MS Excel or Google. When the business becomes more sophisticated, it can use more advanced tools such as Tableau or Microsoft Power BI.

Need Help setting up a SAAS business?

If your SAAS business needs help with strategy or building a software solution, offers consulting and development services for this purpose. We also help clients fill gaps in their working team through contracting or permanent recruitment.

If your business faces challenges in any of these areas, contact us here for a free and confidential consultation.

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