SaaStr

JULY 11, 2023

Here’s what to consider: Pain: The first thing every business should consider is the pain point. So many teams are hiring SDR/BDR teams, and it’s really tough to make that work in SMB sales. Osmany feels that many businesses calculate their close rate in a less-than-helpful way for high-velocity sales. Mid-Market? Enterprise?

Sales Hiring 189

Sales Hiring SMB Sales Recruiting Payment Methods 189

SaaStr

JULY 27, 2022

If a SaaS business hopes to win over the SMB market successfully, it will need a precise GTM approach. Founded in 2015, PayFit is a software company that empowers entrepreneurs and SMBs to digitize payroll and HR processes. Sales teams play a critical role in growing a business.

SMB 223

SMB Sales Hiring Scale B2C 223

SaaStr

MAY 1, 2024

And the enterprise business, while starting to taking off, couldn’t overcome the gravity from so many small customers that didn’t need quite as much Zoom as they did during lockdown. SMB Churn coming down, but still at SMB-Like Levels Zoom for years defied what we knew about SMB churn. Yes, one year.

SMB 241

SMB Scale Banking Enterprise 241

SaaStr

JANUARY 21, 2022

Dorian Stone , Head of Organizations Revenue at Grammarly, is here to share lessons from his experience of scaling the company from consumer to SMB to Enterprise to help you steer your expansion efforts in the right direction. Like when Grammarly scaled, they expanded from a consumer business. Go-to market mechanisms don’t translate.

Scale 236

Scale SMB Enterprise Sales Hiring 236

Nimble - Sales

JANUARY 22, 2021

The post How To Sell Software To Small Business: Successfully Selling SaaS to SMB in 2021 appeared first on Nimble Blog. A bit of adrenaline in the blood, but mostly a relief – many liked the idea and freshness of the WFH rhythm. For salespeople, things began looking worrisome pretty quickly. Specifically, for those […].

SMB 130

SMB Software Business SaaS 130

SaaStr

DECEMBER 1, 2021

The good news is that, as long as you are providing the customer with high value and good experiences, you will likely get repeat business and perhaps even more revenue from the same customer. To make sure you keep customers and revenue in your businesses, pay attention to your NRR (Net Revenue Retention) even more than your ARR.

Software Review 271

Software Review SMB Enterprise Software 271

SaaStr

NOVEMBER 6, 2022

But a true solution to an enterprise-grade problem, almost by definition, usually requires business process change. In fact, my uber-learning is one of the Top 10 reasons customer success is so important is to make sure this business process change is implemented. Most SMB SaaS apps are really ERP 2.0 10 minutes max.

Business 278

Business B2C SMB Customer Success 278

How To Buy Saas

MARCH 14, 2024

It has also become a valuable tool for businesses to connect with their customers. The simple answer to this is through integrating a WhatsApp chatbot, which helps to enhance interactions with your customers and contribute to business growth. 3 Why Business Needs WhatsApp Chatbot? Why Business Needs WhatsApp Chatbot?

SMB 52

SMB Artificial Intelligence Enterprise Business 52

IT World

JANUARY 10, 2022

As we (thankfully) close the books on 2021, it’s time to think about how best to promote business growth in the new year. In this post, we offer up five battled-tested network technologies and strategies that can bring more speed and agility to most small- or medium-sized businesses (SMB), perhaps even while lowering costs.

SMB 106

SMB Technology Strategy Business 106

SaaStr

MARCH 26, 2024

The second time, we started SMB. As a founding team, we didn’t know what to make of our first SMB customers, as they were very small — from $12 to $99 a month. My learning: with very small businesses, you may need 20, possibly even 50, paying customers to have enough data to draw true opinions on what the future holds.

SMB 249

SMB Enterprise Startup Data 249

Sales Hacker

AUGUST 29, 2023

Meka earned a Bachelor of Arts degree cum laude in Economics and Finance from Princeton and his MBA from Harvard Business School P.S. We’re officially running a GTMfund giveaway program! Meka started his career working in Player Development & Baseball Operations for the Cleveland Indians.

SMB 73

SMB Scale Compensation Finance 73

CloseSaaS

FEBRUARY 15, 2023

Selling to SMB companies is a useful skill, especially in 2023. More businesses exist today than ever before. Here’s how to sell well!

SMB 52

SMB Strategy Sales Business 52

CloseSaaS

OCTOBER 21, 2022

What is an SMB? A Small to Medium-Size Business is smaller, savvier, and has less time to waste than larger companies. Here's how to navigate the SMB sales process.

SMB 52

SMB Sales Business 52

SaaStr

OCTOBER 20, 2022

Note this doesn’t include SMB spend, it’s enterprise focused): In a slightly more dated survey, Gartner found in July 69% of CFOs plan to increase their digital spending in 2023. The post Gartner: Business Software Spend Still Forecast to Rise 11.3% That’s not 100%. But SaaS spending is still growing.

Forecasting 279

Forecasting Artificial Intelligence Software Business 279

Tom Tunguz

SEPTEMBER 20, 2016

Recently, we examined the comparative efficiency of bottoms-up and top-down businesses. Today, we’ll dig into valuation metrics to see if there’s any systematic bias in the investor community for SMB, Mid-Market and Enterprise SaaS companies. The data indicates that SMB companies trade on average at 8.1x

SMB 100

SMB Scale SaaS Marketing 100

Tom Tunguz

MARCH 27, 2023

Startups selling to enterprises have increased 36%, twice those of Mid-Market & SMB focused companies. Mid-market & SMB distributions skew left with up to 10% of businesses reporting a decrease in sales cycle during the period. This figure is statistically significant with a p value of 0.0005.

Startup 322

Startup SMB Headcount Sales 322

IT World

MAY 6, 2022

As a result, personal devices are often overlooked or protection is limited to the secure business applications that are used on the devices, according to Gaidar Magdanurov, chief success officer at Acronis. Although this may be convenient for employees, it creates significant security risks for the small and midsize business (SMB).

SMB 86

SMB Data Business 86

SaaStr

NOVEMBER 1, 2023

Well, fast forward to today and it’s truly an SMB powerhouse. How is SMB SaaS doing today? Most SMB-focused businesses need shorter CACs to make the model wok, but with 111% NRR, Bill can invest at > 12 months here. Billion in ARR, it’s still growing 48% year-over-year. Yes, 48% at $1.2 Billion in ARR.

Payment Services 323

Payment Services Payments SaaS Payments Payment Solutions 323

SaaStr

MARCH 6, 2024

Split Sales Team Managing SMB Accounts Into 2 Teams, One on New Business and One on Upsell It’s interesting to see Okta do this a bit later in life than some, but it makes a ton of sense given the current macro environment. Their multi-million dollar contracts are 30%. #5. And a few other interesting learnings: #6.

Fractional VPE 254

Fractional VPE Part-Time VPE Scale SMB 254

SaaStr

DECEMBER 3, 2023

SMB SaaS often has much lower than 100% NRR, especially to start. In fact, Very Small Businesses often see 3% a month churn or higher. Eventually most SaaS SMB leaders get to 100% NRR one way, or another (often by either going multiproduct and/or a bit more upmarket). But you can’t count that as profitable revenue. They don’t.

SaaS Payments 241

SaaS Payments Metrics Payments SMB 241

SaaStr

OCTOBER 11, 2023

From a business model perspective, Shopify has in essence been a fintech and merchant product first and a SaaS product second for quite some time. But the explosion of SMB commerce and the price increase to the SMB Shopify plans has meant Plus revenue growth hasn’t outpaced the overall growth of the company’s SMB base.

Payments 275

Payments Merchant Services Payment Solutions Revenue 275

Tom Tunguz

FEBRUARY 20, 2023

Do public software companies with largely enterprise customer bases benefit from superior growth to their peers with mid-market or SMB focuses? SMB businesses benefited from a post-Covid surge when the US re-opened - a phenomenon that seems to abate with time.

SMB 275

SMB Enterprise Software Strategy 275

SaaStr

NOVEMBER 21, 2020

upsell/account growth + renewals – churn) for very small businesses. Let’s look at some of the top public SaaS companies: Shopify — very SMB: 100%. Hubspot — mostly SMB: 100%. Surverymonkey — fairly SMB, but going more enterprise: 100%. Zendesk — 116%, mix of SMB and enterprise. And mostly SMBs.

Retention 347

Retention SMB SaaS Enterprise 347

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. One of the most interesting examples is Microsoft’s Office 365 SMB business. It’s the most successful SMB SaaS acquisition channel ever built. by Thomas Hansen.

Outsourcing Services 111

Outsourcing Services SMB Acquisition Scale 111

Andreessen Horowitz

AUGUST 9, 2022

As I reflect upon my experience building Bond Street (an SMB lending startup we sold to Goldman Sachs in 2017), one of the biggest challenges we faced was in scaling customer acquisition.

Scale 121

Scale Software SMB Business 121

SaaStr

MARCH 22, 2024

After switching to SaaS, she started as an SMB sales leader with no prior management or SMB sales experience. They also come in the form of people she cares about leaving the business or struggling to succeed because they don’t have the tools they need. The highs and lows always come, usually involving the people on your team.

Scale 277

Scale Underperforming Technical Team SMB Finance 277

SaaStr

JUNE 2, 2022

Two things though did get hit harder — SMB Churn and Upsell s. Customers kept buying more SaaS than ever, which masked all-time high churn in SMB accounts. SMBs just plain went out of business in ’08-’09. So our gross SMB churn spiked to a crazy high of 5.5% That never even slowed down.

SMB 341

SMB SaaS Churn Enterprise 341

Tom Tunguz

SEPTEMBER 13, 2016

When an SMB SaaS startup is young with quickly growing revenues, more of the same works. Fast-forward two years when the company is at $5M in ARR and the business needs to be adding 13,333 customers each year. For some SMB SaaS companies, generating this kind of lead volume even at scale isn’t a challenge.

SMB 100

SMB Scale Startup Marketing 100

SaaStr

APRIL 26, 2023

Having said that, many SMB players were hit hard in 2022. Zoom’s SMB customers shrunk for the first time ever, for example. Squarespace bought an online restaurant reservations player in 2021 for $400m, and that business continued. New customers only grew 3%. That’s very mature.

Scale 265

Scale SMB Churn Pricing 265

SaaStr

FEBRUARY 19, 2022

When you’re starting off in SaaS, it’s very tempting to target small businesses. That journey here: Most of us don’t stay SMB forever. Zoom similarly started off almost 100% self-serve and SMB, and then later added an enterprise team. PagerDuty was almost entirely SMB at IPO, at $125m in ARR.

SMB 339

SMB SaaS Enterprise Software 339

Tom Tunguz

OCTOBER 9, 2016

What are the attributes of the ideal SMB SaaS company, an entrepreneur asked me recently. There are product, marketing, and sales attributes to that ideal company that successful SaaS business have exemplified in the past. For example, NetSuite is the application many small to medium businesses used to manage their financials.

SMB 100

SMB SaaS Acquisition Education 100

SaaStr

JUNE 22, 2023

Dear SaaStr: What do startup founders typically get wrong when starting a business? SaaStr Trying to pursue a “Grass is Greener” business model. SMB folks want to go upmarket because there is too much churn in SMB. My list: Not committing to 24 months upfront to getting to Real Revenues and a Minimum Sellable Product.

SMB 261

SMB SaaS B2C Interviewing 261

SaaStr

APRIL 10, 2023

Others may seek to corner the SMB market. However, what many businesses may overlook is the startup segment. Often, startups are lumped in with small businesses, yet this approach fails to recognize what motivates and attracts these early-stage companies. Think about how to find these valuable customers. “We

Startup 241

Startup Scale SMB Venture Capital 241

SaaStr

AUGUST 27, 2022

Salesforce: “We’re finally seeing slowdown now in our commerce, media, telecom, and SMB segments”. While the stock price was hit along with everyone else, the business wasn’t. Nearly everyone I’ve talked to is taking a more measured approach to their business. But e-commerce, media / comms, and SMB are under pressure.

SMB 273

SMB Scale Cloud Trends 273

CloseSaaS

SEPTEMBER 25, 2023

Close was designed for small businesses—with comprehensive features, solid support, extensive integrations, and a mobile app—all for a fair price. Learn how to optimize your SMB workflows with Close.

SMB 52

SMB Business Mobile Pricing 52

Kellblog

APRIL 19, 2024

A lot of today’s SMB companies will be mid-market tomorrow, so we want to catch them on the way up. CEO: Well, you know, you can’t really control who clicks on a Google ad, so we can get inbound from SMB, MM, and ENT. Let’s say you’re strong in SMB and your growth strategy is a big up-market push into MM.

Startup 105

Startup SMB Airlines Banking 105

Tom Tunguz

MAY 5, 2013

Kenny van Zant drew this diagram for me on white board and I think it’s the best visualization of how SMB SaaS freemium business grow. The diagram highlights a few important mechanics of the SMB SaaS business model. While these mechanics may be well known, there are three counterintuitive things about the SMB SaaS model.

SMB 100

SMB Scale SaaS Mobile 100