Your end goal is an accelerated exit, where you get to optimise your company’s valuation.
But the truth is, maximising the value of your business and securing a successful exit, means you have to execute the basics right.
So if you’ve already got a revenue-generating SaaS business, here are 5 basics to scale further and achieve a higher exit multiple…
📈 ACQUIRE & RETAIN. Never forget you want to simultaneously scale-up and acquire new customers, while avoiding high rates of churn. Build out the acquistion infrastructure in-house (or work with partners who will deploy this for you). And focus on giving your customers multiple good reasons to avoid dropping away. Your valuation depends on getting the acquistion AND retention challenge solved.
📈 GO DEEPER ON YOUR NICHE. Most SaaS companies think they already operate in a distinct niche. But the truth is, the majority could niche down further. Think about it. If you can become even more relevant to your customers, you get to offer much greater value AND attract a seriously loyal customer base.
📈 OBSESS OVER METRICS. And make sure they’re the right metrics. Two of the most important ones for businesses we work with are CAC and LTV, but we have a few others. Our focus is ALWAYS around optimising these numbers.
📈 JOINT VENTURES. A really low cost method in supporting a scale-up and maximising your valuation is a JV or alliance. Pick a partner with access to the same target customers as you. This will help you leapfrog the constraints of organic growth.
📈 WORK WITH GROWTH PARTNERS. Those who are M&A specialists. As a general rule, you should be engaging with growth partners 36 months out from your exit. That’s definitely the case, if you’re looking to scale your business to the next level AND maximise your valuation.
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