Thread by @iamwillcannon

I built a SaaS from zero to a ~$75 Million valuation in 3 years.

Here are 8 lessons I learned the hard way (so you don't have to):

#1 Talent

Once you get past a million in ARR, your job changes.

It turns into finding the best people for the job:

>hiring
>recruiting
>managing
>leading talent

This is super important.

Remember:

You're not gonna be able to build a huge business without talent.

>Find very talented people
>Pay them a lot
>Leave them alone

Simple.

#2 Always Be Testing

With SaaS,

You need to look at what users are doing in your app.

>Why are they doing that?
>How can you push them to do this?

You need to be looking at everything:

>landing pages
>marketing channels
>your copy
>your plans

...EVERYTHING...

...and you need to always be testing.

When you run these tests, you might improve 1% every week,

But this compounds over time.

If you're building a big business over a long period of time,

These mini improvements - as a result of testing - can be the difference between hundreds of millions of dollars in revenue.

Always be testing everything.

Whatever it is,

It can be tested.

#3 Make data-driven decisions

Don't decide based on your gut.

To understand your app,

You have to understand the data the app is generating.

(that's how Facebook got to where they are)

All billion-dollar businesses use data.

And this goes along with the 'always be testing rule':

You need to

>run tests
>analyze data
>use the data
>compare and test it again.

Test and make data-driven decisions only.

#4 Run your business as a meritocracy

The best idea wins, no matter who has it.

(it can be your cofounder, CFO, VP of sales, an intern, etc)

Look at data and also:

Accept input from everyone.

You need different perspectives from your workforce.

(homage @RayDalio)

#5 Raise your prices

I don’t care what you’re charging,

It’s not enough.

Pricing is the #1 lever SaaS businesses can use to grow faster...

But it's also one of the scariest things,

Especially if you're a 'bootstrap' entrepreneur and running 100% of the business.

You think "If I raise prices, people will cancel" and you start getting inside your head.

No. Just raise them.

We've done it at least once per year since we've started.

(I probably should have done that twice or three times per year)

And we're going to keep doing it.

And don't just raise prices by 5% either.

Raise them a lot.

#6 Focus on the areas you love (ideally that you're also great at)

For all the areas in your business you don't excel at,

Hire the best talent possible.

Example:

I love marketing and customer acquisition.

But I'm not the best at sales, hiring, and other aspects of business...

So I hire out those roles.

Do what you love and you're great at.

Hire the best talent you can find in all the other areas.

#7 Diversify your customer acquisition channels

Something I learned back in the day:

>I was doing some shady SEO for a business (long time ago)
>Got hit by a Google algorithm penalty
>We went from making a ton of money to basically nothing in a week

Don't just do Facebook Ads or SEO or whatever...

If you're good at them and it's working?

Great.

But don't avoid other customer acquisition channels.

When you're building a SaaS company,

The goal is to build a brand.

If you diversify your channels, you're gonna be fine if one platform fucks you up.

(and things can change overnight!)

Look at UpLead:

Right now,

The majority of clients hear from us via friend referral or a colleague (because we're everywhere).

And that's what you should strive for.

#8 Don't build something new

Find an industry that already has the product-market fit.

The reason for this:

Your chances of success are astronomically higher when you enter a market that already has product-market fit.

Don't get me wrong:

There's a .0001% chance you'll create a 'unicorn' business that launches you as the leader in your industry...

But the majority of the time you won't.

Find an industry already with a product-market fit and copy something.

Much better chances of success.

Thanks for reading!

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