Subscription Revenue Companies Need Structure

I work with many SaaS companies to tackle common issues in finance, growth, and operations. What I’ve seen repeatedly among early-stage SaaS founders is a reluctance to establish process or structure.

Often founders reject these in the spirit of maintaining what they think is “flexibility.”

In reality, it’s a competitive disadvantage to ignore the facets of your business that enable growth—and attract funding.

Structure actually allows for flexibility in this world of high-volume transactions, low-ticket items.But many early-stage SaaS companies fail to recognize this. They accuse me of suggesting they run their company like a big-box store.

The complexity of a process is particular to the type of business. If you’re selling diamond rings for $30,000 a piece, then one person, one counter, and one video camera will suffice. But, if you’d like to build an organization that sends out 10,000 invoices a month and collects $5 from each person, you need to have processes in place. You can’t afford to hire enough people to manage individual transactions, customer support, tech support, customer retention, AR, or billing.

All of these functions are just structures. And these are the structures that a SaaS company has to be concerned with if they’re going to be able to execute high-volume sales.

Read more in my full article on Subscription Insider.