This document discusses strategies for building a $100,000/month SaaS business, including:
1. Pursuing large total addressable markets (TAMs) over $1 billion or focusing on niche markets under $200 million.
2. Using funding strategically when it can power growth, but recognizing execution is also key.
3. Leveraging low costs in India to improve features, marketing, customer success.
4. Optimizing the full customer funnel around acquisition, activation, retention, revenue, and referral/growth.
5. Achieving product-market fit through solving customer problems and reaching appropriate scale before focusing on growth.
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5 ways to build a $XXX business
2Angel VC: http://christophjanz.blogspot.com/2014/10/five-ways-to-build-100-million-business.html
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TAM no bar...
TAM > $1B+ ==> VC Vs TAM < $200M ==> Bootstrap
Vertical Vs Horizontal
Niche Vs Wide
SMB Vs Mid-market Vs Enterprise
https://startupsventurecapital.com/whats-my-tam-47f208f5d6c
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$ is a tool, to be used appropriately
$ doesn’t get you growth
$ doesn’t solve execution problems
But if you are a nuclear bomb powered rocket?
Then $$$$$ from VC is the nuclear bomb powering you.
Because with $$$$$, your options are Go BIG OR Die HARD!
To raise, or not to raise, that is the ?
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The India Advantage
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Convert Cost Arbitrage -> Value Arbitrage
Cheap devs -> More features,
integrations
Cheap marketers -> More campaigns,
leads
Cheap customer success -> More NPS, refs, -ve rev
churn
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One Ring To Rule Them ALL
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Acquisition
Activation
Retention
Revenue
Referral
Growth
Product
Adapted from: http://www.forentrepreneurs.com/saastr-
2017/
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Twin tracks
Track 1: Market/Product Fit
Track 2: Growth
Parallel tracks with Product leading
Goal: Optimize your full funnel!
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Founder Market fit
Problem Value fit
Product Solution fit
Market Scale fit
https://hackernoon.com/four-components-of-product-market-fit-dc1c00067239
Breaking Down Product Market Fit
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One customer, deepest relationship, feature, value delivery
Few customers, deep relationships, product, unit economics
Segment id’d, integrations, value based pricing
Channel fit, CAC, churn
Adjacencies, Net -ve revenue churn
PROFIT!
Stages of PMF
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Product led growth Vs Mktg/Sales led growth
Doubling down vs going wide
Traction book - building engine vs throwing darts
Which is right channel for your product, market?
Margin -> Investment -> Growth
Building up Growth Engines
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