This article appeared in full on OPEX on September 20th, 2018
In the past 20 years, companies have fundamentally changed the way they consume business systems. Data management could slow a company or enable growth. Efforts in reporting and analysis took time and were reliant on centralized IT departments. This dependency on began to wane in companies outside the Fortune 2000 as easy-to-use business systems could now be distributed from everything from sales to marketing.
A $20M SaaS company that wants to grow their Annual Recurring Revenue ARR 10x needs to be mature in its systems, processes, data and reporting. These companies run of numerous SaaS services to run their day-to-day sales, marketing, and employee needs. It is when these departments are no longer siloed to we see insight and coordination into budgets.
Business operations managers now support their functional area AND reporting. This can lead to siloed operations, think Salesforce admin split between Sales for SalesOps or Marketing for marketing activities. With business operations managers taking the role of a new IT, this can slow down cross-functional processes and require management involvement for simple tasks.
Investment in system management is what gets you your Return on Investment. Integrated systems lead to faster analytics that show where to allocate resources. Best in class $20M SaaS companies:
David Carnes, founder and CEO of OpFocus, speaks about the issues in data management that SaaS companies face getting from $20M to $200M. From integrating systems to building strategies that support rapid growth. I asked David what is the most important think SaaS companies need to do to grow revenue 10x.
SaaS companies focus on Sales and Marketing but operations should not be forgotten. Operations is key to growth across the Customer Relationship Management CRM, marketing and billing systems. Id this isn’t part of a growth roadmap, the needed changes to adjust metrics and financial reporting slows everything. Without this foresight new geographical focuses, products, or markets need new systems with implementation time and training that the organization will hopefully adopt.
To get started, all business systems, processes and reporting must be documented. Find what is broken and determine what needs to be fixed. This will be the basis of building your 10x revenue operational roadmap. A successful SaaS company will realize early on that governance, process, and policy of the business operation function is not siloed within the organization. Another is an investment in a Business Intelligence BI tool, which help support reporting across systems and departments.
SaaS companies using their own services need to be wary of internal siloes, keeping consistent metrics, and investing in sophisticated analytics rather than last minute Microsoft Excel Reports. Don’t just plan for budget. Plan for operational processes and roadmaps for financial plans, business operations that report without siloes, and invest in BI tools. Focusing on internal operations, systems and processes are what delivers insight into company performance, agility, improvement, and growth.
Learn more about how OpFocus can help take your SaaS company from $20M to $200M with our strategic SaaS services.
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