So "SaaStr Inc" revenue run rate fell to $0 in March+April with Covid ... and now is at a $3.2m run-rate, with a goal of $21m in 2021.

That's a big tilt, and a lot of change

The stakes weren't that high, but it was a second life learning on "tilting"

Here's what I learned:
1. Folks process change at different rates. Co-founders can process change the fastest. Some folks though need 10x-20x longer.

You need to >explain< rapid change many, many more times than you think.
2. Some good folks just won't go on that next journey with you. Some folks just won't want to go through the "tilt" and change. They didn't sign up for the new journey.
3. Give folks more time in a tilt. Related to point #1, but in a tilt, even some of the best folks may need 100 days to not just process change, but internalize brand new ways of doing things

But once they do, amazing things can happen

So give your top performers more time
4. Don't overload your top performers. This is tempting in normal times, but even more so during change. The top engineer, the top VP, the top leaders take even more on their shoulders.

As CEO/founder, you need to make sure they don't take on so much, they break.
5. The real leaders, post-tilt, come out better than ever. Promote them. Invest in them. Rebuild around them.

And watch who pokes their head up above the clouds.

The leaders you didn't know you had.
6. Finally, broken record here -- but go talk to your customers. They didn't know what they wanted in March and April (either). But they adjusted.

Your customers can't see the future very well.

But they sure can see the present. They can show you that. If you listen.

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More from @jasonlk

Oct 28, 2023
So Freshworks hasn't been immune to macro issues, but its bigger customers continue to grow and scale at an impressive rate

It's at ~$600,000,00 ARR today, growing 20%. But the bigger customers are growing much faster.

5 Interesting Learnings:
#1.  Bigger Customers Keep Growing, But SMBs Have Slowed

A common theme across tech today.  Freshworks has 51,700 customers at around $2k ARR, with a quick sales cycle of just 25 days.  But in contrast to their bigger customers, the macro environment — or perhaps market saturation — has led to slowing growth in their SMB segment in 2023.
Image
#2.  Leveling Up PLG to Accelerate SMB Customers, Including More Attention to Onboarding

It can seem hard to invest heavily in small customers, but if you don’t especially invest in their onboarding, that’s a big shame.  Because there are few things worse than closing a customer that never actually uses your product.  So much wasted energy getting them there.

Freshworks is doubling down here
Image
Read 11 tweets
Sep 24, 2023
Klaviyo and Instacart reopened the IPO markets, from a 20 year low

Two great leaders, worth almost $10B now and public, and both priced at high end

But they IPO’d without any “bounce”

A little easy money and greed does help restart markets

We didn’t see that Image
Klaviyo and Instacart in the end didn’t leave any money on the table

They maximized what they could raise, with the minimum dilution

But no bounce probably leaves the next wave of folks that are strong, but not as strong as Klaviyo or Instacart, in a slightly tougher position
IPO investors are a weird, thin niche of the market

After all, you can always just buy the next day, next week or next quarter if you want

We probably learned this week the demand is there in this niche market (buying at the IPO), but it’s not all that deep
Read 6 tweets
Jun 27, 2023
I caught up with a sales rep this week on track to make $350k this year so far — and was miserable

I asked why?

A bad boss? No, he said

A crummy startup? No, it’s fine. No Snowflake, but fine.

Rough commute? No, he still works from home.
What’s wrong then, I asked? How bad can it be?

“I made $500k in 2021, and now am making $350k working twice as hard or harder than back then”

He felt underpaid for working harder in 2023 than 2021

Even though he was still making $350k in today’s macro

He felt very underpaid
Then I asked, OK, what do you think you’d make it you started over and went to another startup?

“Probably less than half. No one’s hitting their number. I’d probably make $130 or $150” he said.

Again, he’s making $350k today

That’s just down from $500k in “easy money” in ‘21
Read 6 tweets
Jun 13, 2023
Want to get a SaaS start-up going?

Here are my Top 20 Tips to get a SaaS startup going and off the ground: 🔽2️⃣0️⃣🔽
1/ Take your time to find a great co-founder

It may seem like you are in a hurry, but in the end, anything less than a great co-founder will set you back. A bit more here:

saastr.com/a-simple-commi…
2/ Find a co-founder complementary to your skills, ideally

Someone great at something core you aren’t: Sales, Engineering, Marketing. Great at sales. Great at engineering. Great at marketing.

More here: saastr.com/what-to-look-f…
Read 23 tweets
Jun 9, 2023
"A Top 10 Mistake:

Not going multi-product early enough."

saastr.com/add-second-pro…
"Don’t take the easy route.  Your customers will want things that are fairly easy to build, and you’ll understand those problems well, because they are adds-on to what you are already selling.  

But these rarely move the needle."

Peter Gassner, CEO Veeva
“It’s critical to be truly multi-product by $100,000,000 in ARR … and the biggest mistake is trying to sell to different ICPs” — Spencer Skates, CEO Amplitude
Read 4 tweets
May 21, 2023
I can be slow sometimes, but it’s taken me a while to understand what’s >different< in SaaS in 2023

Budgets are tighter, but SaaS is still growing, folks are still buying more software than ever

Here’s what’s different:

2023 is the first time SaaS itself got harder since 2005
SaaS has never been truly easy outside of a window from mid-2020 to late 2021

But every year, it got easier and easier. Not easy, but easier and easier: Image
There was a bump in 2016 when budgets were slashed, but it didn’t last long enough to really impact renewal cycles

Even the 2008-2009 downturn, while brutal, didn’t hit SaaS as hard as the rest of the economy. The best of us kept growing, albeit with elevated churn through 2010
Read 8 tweets

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