The Software Industry is not what it used to be, a successful hiring strategy is required for SaaS firms that is laid on a cloud-based business model.
SaaS is the new normal:
The SaaS business model has found its way to becoming a disruptive force right from an Enterprise – software industry up to the Automotive industry. This all started with the launch of the first iPhone in 2007 and the advent of Cloud Computing services from tech companies like Google and Amazon Inc. This paved the way for a new path where work could be done on mobile devices and anywhere around the world.
What the future holds:
Now with COVID-19, it is rapidly becoming a default product delivery model at an excessive speed with its upfront payment, given that companies and their employees working remotely are growing rapidly. The reliance on technology to function has increased more than ever, hence a boost to the SaaS enterprises.
However, the road to successfully implementing and selling a SaaS product will be clamorous. As SaaS continues to become more sophisticated, the expectations and demands from the customer side will also change for them to do business easily.
The markets have been shaken by the Novel Corona Virus as well. So, the investors are also looking closely at the bottom line for the SaaS industry. The new players of this model will have to adapt to a new approach.
A SaaS-based hiring strategy:
New companies adopting this new model must acquire and impart the service-centric ideology across all boards of the business. Having a good subscription model in SaaS is not alone a road to success, but the delivery rate and experience are required to be streamlined as a customer-friendly experience for the client.
As part of the company’s inclination towards the initial targeted ARR let us say $1m, having a strong set of talents is of utmost importance to sell the product and gain reputation.
All the following functions must have the same mindset of an ‘end to end service’ oriented strategy:
- Business Operating Model
- Customer Success
Among all these functions, the most contributing function that scales the business to that initial $1m ARR would be the sales function, especially considering this time where the sales are mostly done remotely.
The sales circle:
Although organic sales at the inception of the business may have given a push towards the path of growth, the employees in Sales the wheel that is MQL’s (Inbound marketing), Account executives, Managers and customer success will be the driving force of scaling your SaaS product. Well yes, although the SDR’s and BDR’s play a significant role in the business they are not distinctively revenue-based roles or activities.
So, what makes a fantastic sales team in a SaaS company? The answer is as simple as skill, perseverance, and knowledge in the SaaS domain, but one does need to know the expertise that is required for the same, which are:
- The ability to quickly grasp and understand the technology
- Understanding the true potential and use of the product
- The talent in identifying the ideal customer for the firm
- Understanding the world of Venture Capitalists
- Creating a wide network of connections
A strong sales team with the above qualities in a SaaS firm will forge a path to building a strong and influential business.
A SaaS or a software firm, in general, is usually started by either an Engineer or a business/marketing executive. In this case, the company is small, and you naturally have a CTO (Chief Technology Officer/CMO (Chief Marketing Officer). Getting a certain amount of leadership roles in a small firm usually depends upon factors like target ARR of the firm, funding, and cash reserves. Although, the firms that are backed by VC’s (venture capitalists) usually are easily able to pull in at least two senior executives for every business function (E.g.: VP of Sales and Director of Sales). The smaller number of senior executives recruited, the higher target of ARR can be set.
In the end, assuming one has reached the count of $1M ARR, this is not to build the product but to create more business prospects, sell, market the product, and scale the respective SaaS business.
Ingenio and SaaS:
At Ingenio, we have helped tech businesses to scale their businesses by hiring exceptional talents throughout our journey since 2014. With our extensive experience as recruiters for tech companies, we have helped SaaS firms by building talented teams with our conception of Baby RPO’s.
Ingenio’s work in the SaaS hiring:
AiCure, a New York-based AI and an advanced data analytics company is rapidly expanding its business operations. Ingenio has helped in this procedure in setting its remote office. Click here to know more about Ingenio’s work with AiCure and its RPO features to scale your SaaS business.
Written by Srinivasan Nagarajan