Thread by @ThomasSmale

A mistake I see founders making?

Failing to optimize for their exit.
-No metrics tracked
-No financial records prepared
-No idea what they want/can get for their business

Fix that with these 6 tips:
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1) Reduce churn.
Most can improve churn rates by improving their onboarding process, increasing customer service efforts, updating FAQ pages, and adding help articles that keep customers informed.
⬇️

2) Outsource development and support.
A ‘passivity premium’ and a non-technical premium can be attached to SaaS businesses that have effectively and reliably outsourced development and customer support.
⬇️

3) Secure your intellectual property.
Many business owners fail to properly secure their intellectual property ahead of a sale, which can stall or terminate the transaction.
⬇️

4) Document the source code.
A well-documented, annotated, and tested source code is a distinguishing factor of premium-valued SaaS businesses.
⬇️

5) Position the product.
Business owners plotting a sale should think about planning their next major upgrade 3-6 months ahead of going to market.
⬇️

6) Avoid discounting.
Sellers have been known to launch an unprecedented sale to inflate the valuation and generate additional cash ahead of an exit. Buyers see through this and either discount the relevant months or avoid the deal entirely.
⬇️

Remember:

Preparation can help your exit go a lot smoother.

Find the article linked below for more.

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#saas #entrepreneur #founder
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