The initial horizon might look cloudy, but there are ways to burst through into sunshine. Until 2022, SaaS growth was based on its resilient model, popular products, scalable revenue streams, and easy access to cash.
While financing will remain tight in 2023, the other characteristics remain. SaaS companies that maximize operational efficiency and see out the downturn have a lot to look forward to.
For 2023, SaaS companies should:
1. Review their costs and take steps to increase their cash runway (for 18-24 months).
2. Focus on retaining customers and expanding existing customer accounts (to 20-30% of revenue).
3. Invest in product and improve product-market fit (using NPS and CAC/LTV ratio).