Podcast EP 18 - Capital Efficiency

How do you manage the demands of growth and efficiency? And might you veer towards being too risk averse at a time when you should be pushing harder? Mark and David discuss how they've dealt with this from their perspective.

By
Beth Gladstone
on
Dec 31, 2019
Category:
Podcast

There is a change in mindset required from anyone who has run a service-based industry (such as a consultancy), who moves into a fast-growing SaaS business. The key difference is 'margin' vs 'growth'. There is little point in raising money if all it does it sit in the bank. But there is a balance. How do you manage the demands of growth and efficiency? And does your background mean that you might veer towards being too risk averse at a time when you should be pushing harder? Mark and David discuss how they've dealt with this from their perspective.

To an extent, until you at least get to Series A and several $millions in ARR, you probably need to be in cash conservation mode as you are still experimenting and trying to prove your assumptions. But at the same time, the aim isn't to conserve enough cash that you become profitable too early.

LISTEN HERE: 

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Show Notes:

Not mentioned in the podcast, but for those interested, there is a really good slide presentation here from David Skork about the different phases of a Startup, and when you should move from 'burn avoidance mode': https://www.forentrepreneurs.com/saas-north-2017/

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Beth Gladstone

Head of Content at ScreenCloud. Writer and content strategist.