THe Gap - $10 to $100M+
I’m normally brought in to one of two scenarios of a SaaS offering. A well funded startup looking to get to $10M annual rev or a SMB product at or around $10M looking to get to $100M and that coveted $1B valuation. This is commonly known as the ‘gap’ in the tech world. The reason most products get stuck here is due to the strategies that got them here ($01M) won’t get them there ($100M+). It’s a significant challenge for any offering as it requires scaling up operations, expanding into new markets, and often undergoing significant organizational change. So, what’s the solution? Glad you asked! In my experience it’s a blend of strategies, systems, measurement, innovation, and organizational evolution.
Each scenario has its own unique challenges and limitations but can leverage similar product and UX strategies to achieve that exponential ‘hockey stick’ growth. High level needs include tailoring the product to the target markets, continuously improving the product based on customer feedback, and effectively promoting and selling the product to target customers while reducing churn. A great way to tackle all of that is with quality systems. A good system doesn’t rely on heros or geniuses to run, so a simple and scalable design system, product feedback, and adoption and engagement solution solves a lot of issues without falling into a build trap and keeps you out of tech debt.
Here are a few strategies that a company might consider in order to close the gap and achieve significant growth:
An objective Audit: A key retrospective you must perform to find where you’re winning, losing, and what gaps to close. From your tech stack to your org chart it’s key to find opportunities for automation, bring in new team members or 3rd party support, and align your business model. Your product is your business model, not your site, app, sales, marketing, etc..
Product Evolution or Additional Service/Offerings: Adding new products or services to the company's portfolio can help to increase revenue and reach new customers. It may also be helpful to consider expanding into new markets or verticals, either through organic growth or through strategic acquisitions. Make sure you have a well thought out product strategy before undertaking this. Lean canvas techniques are great for this process.
Invest in Product-Led Growth : Being product-led means that the product itself is the main driver of growth for a company. In a product-led organization, the focus is on continuously improving and innovating the product in order to attract and retain customers, rather than relying on traditional sales and marketing tactics.
Customer Sentiment: Maintaining high levels of customer satisfaction is important for retaining existing customers and attracting new ones. This may involve investing in customer service and support, gathering and responding to customer feedback, and continually improving these offerings. Persona based NPS scoring is key for this, focusing on both the buyers and the users. Pendo is a great tool for this.
Foster a Culture of Growth and Innovation: Encouraging a culture of innovation within the organization can help to drive growth by generating new ideas and identifying new opportunities. This may involve setting up innovation labs or fostering a culture of continuous learning and experimentation. Don’t get stuck in the ‘this is how we have always done things’ trap
Seek out partnerships: Partnerships can provide access to new resources, expertise, and markets, which can help to accelerate growth. You can’t build everything and you shouldn’t want to. Be best in class in your lane and pair with other best in class accessory offerings.
By implementing even some of these strategies you greatly improve your product achieving hockey stick growth. As you most likely know, 90% of startups fail, so you’ve already beaten long odds! Don’t get stuck in the ‘this is how we’ve always done it’ trap. What got you here won’t get you there. Need help getting over these gaps? I’m you guy. Let’s Chat.
