Learn How You Achieve Trifecta Growth

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"Expect the best. Prepare for the worst. Capitalize on what comes."
Zig Ziglar
American Motivational Speaker

Establishing Your B2B SaaS Business's Foundation

Long before the 2020 pandemic, a sampling of sources such as the Business Roundtable reported C level optimism dropping for most of 2019 and parts of 2018.

The irony is that most C level players today weren’t around with the responsibilities to address the challenges of the 2007-2008 recession. So many will not be prepared for another similar events today, until all signs are unmistakable.

We’ve discussed on this website the premise of establishing your B2B SaaS business’ revenue growth approach.  An important part of this article is to include within this approach a process to prepare for the worst.

bEffective can help your B2B SaaS business create a unique strategy understood and accepted by everyone. We help you strengthen this strategy with candid dialogue beyond the C suite. This strategy will clearly define roles and responsibilities thus allowing it to be executed properly with or without the C suite daily direction. Executing it will necessitate bold and decisive action, as well as visible leadership.  Get further insights by opting-in our newsletter.

"By failing to prepare, you are preparing to fail."
Benjamin Franklin
Founding Father of the U.S.

Preparing Your B2B SaaS Business for Economic Headwinds

What is your comfort level with your B2B SaaS business?

  • Do you miss your top-line revenue objectives? 96% of CEOs believe it’s very important to have a granular, realistic understanding of where revenue will come from — but 69% rated their organization below average at this capability. Source: SBI’s Research Studies.
  • How well crafted is your organizational alignment? Managers say they are 3x more likely to miss performance commitments because of insufficient support from other functional areas. Source: “Why Strategy Execution Unravels and What to Do About It,” Harvard Business Review.
  • How well is your SaaS business’ team executing your strategy? 67% of well-formulated strategies fail due to poor execution. Source: “Executives Fail to Execute Strategy Because They’re Too Internally Focused,” Harvard Business Review.
  • Do you agree with most C level executives regarding talent gap? 95% of CEOs rated hiring and retaining top performers as very important, but 76% believe their organization tolerates under-performers, hiring mistakes, and long new hire productivity cycles. Source: SBI’s Research Studies.

Is your B2B SaaS business ready to address questions, for instance around what to do when a recession arrives? If so, what is its developmental level of your SaaS business for making-it-happen:

  • Level 1, Chaos – a corporate strategy may exist but no functional strategies are in place.
  • Level 2, Defined – corporate and functional strategies are documented but collecting dust.
  • Level 3, Implementedcorporate and functional strategies exist but developed in isolation from the board and other functional departments. There is no coordinated effort to drive alignment.
  • Level 4, Managed – corporate and functional strategies have been defined, aligned, and implemented
  • Level 5, Predictable – corporate and functional strategies have been define, aligned, and implemented both internally and with the external market

What were your plans for 2020, now in execution mode? Market-leaders typically chose 1 to 3 bets: Expansion; Market Share Gains; New Market Entry. How has your B2B SaaS business’ revenue growth strategy performed, and how might it change now that a recession is on the horizon?  Need help check out our newsletter.

“Success depends upon previous preparation, and without such preparation there is sure to be failure.”
Confucius
Chinese Philosopher

Trifecta Approach

The best revenue growth strategies are unique and bold. Think, for instance Tesla and Hubspot today or Ford and Apple who used them to avoid bankruptcy and gain the biggest turnarounds in corporate history.

“Riches do not come by crossing your fingers and walking through the day hoping. Riches and wealth comes from well-laid plans.” Source: Jim Rohn, American entrepreneur, author and motivational speaker

bEffective’ message is that your B2B SaaS business must consider a strategic blueprint foundation for its success which has “the ability to execute a strategy so well conceived, understood and embraced by all that it almost guarantees a successful outcome, even against the odds.” Source, Eric Beaudan, Author of “Creative Execution.” Do you believe that your B2B SaaS business’ revenue growth strategy is unique and bold, more importantly is it adaptable to possible market headwinds?

If so, before a recession arrives consider the following trifecta should you need to reallocate spend to:

  1. Increase Return on Sales, where you
    • Increase the number of sales reps
    • Or increase annual bookings per sales rep
      • Which will leverage the support or your choice, either to increase account base marketing
      • Or add new Logos
      • Or improve talent, presuming you have a disciplined and opportunistic talent management process.
  2. Increase Customer Lifetime Value, where you
    • Expand Up-sell and Cross-sell capabilities
    • Improve Customer Success, given all the sales in the world won’t help if you have a leaky bucket (i.e. customer retention or contract renewal).
    • Expand Customer Marketing programs, to focus on Up-sell and Cross-sell
  3. Increase Profitability, where you
    • Increase price per unit by minimizing discount level by sales reps
    • or Establish a Revenue Desk to oversee customer pricing

Additionally, as your B2B SaaS business execute your choices above consider a:

  • Go-to-Market Project Office
  • Change Management approach
  • Decision Making Engine (for the benefit of your front lines managers)

Bottom line the strategies, execution, spend and expected outcomes are all designed to help your SaaS business gain an upper-hand during a recession.  What your B2B SaaS business decides for adapting its revenue growth strategy to adverse market events needs to be based on the following:

Leading Indicators such as:

  • % Revenue Invested in Sales & Marketing
  • Pipeline Coverage Ratio
  • Sales Representative Turnover
  • % Selling Time

Lagging Indicators such as:

  • % Bookings attributable to Marketing
  • Annual Bookers per FTE
  • Dollar Retention Rate
  • Revenue Mix
  • Quota Attainment by Representative
  • Win Rate
“Before anything else, preparation is the key to success.”
Alexander Graham Bell
Inventor (of the Phone)

Action Step

You’ve read our promise, for the challenge you may be facing along with the ‘how to’ solve it.

bEffective offers services to help your B2B SaaS business establish its revenue growth methodology in whole or for the module you need help to improve upon.

Should you wish to do it for yourself, then check out our resources menu for ‘how-to’ solve the challenge mentioned above as well as others in this area of our website. Keep in mind the research and science dictates the ‘right’ revenue growth approach needs to be built in sequence, integrated and more for achieving the promise percentage, dollars through to consistent cash flow.

Alternatively, please do opt-in to our newsletter for relevant daily and tactical daily aids (see link in the footer).

Or simply begin with a comment about the article. We would appreciate it. Everything we’ve mentioned on our website requires leaderships which makes bold and decisive action. Be bold, decisive and insightful with your comments. We will appreciate it.

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