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Ask HN: I need advice on my first B2B SaaS startup

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Re: Ask HN: I need advice on my first B2B SaaS startup

#31

Post by dkarras »

oliverx0 wrote: post #7
sharemywin wrote: post #5

accelerators https://thembaisdead.com/list-of-startup-accelerators-and-in... pre-seed and/or angel investors freelance to stay a float. funding portals: https://www.crowdfundinsider.com/2018/03/131246-finra-approv... https://www.crowdfundinsider.com/2018/06/134408-there-are-no...

Thank you, we also thought of accelerators as a plausible option. Part of the reason I asked the question though, is that I am curious how others are able to get from just an idea to VC funding. It sounds simple: build a great product, and get enough traction. But actually doing it, even if we believe in the product, seems to take a lot of time. Are we missing anything that other founders do? Or are the suggestions y…

It is usually about coming up with an idea that addresses a burning need. Getting enough traction becomes quicker that way and provides you with the necessary runway. So instead of getting "wow" as a response when you showcase, it becomes more like "we need this yesterday, when can we talk?"

Re: Ask HN: I need advice on my first B2B SaaS startup

#32

Post by oliverx0 »

LeonM wrote: post #29

You need someone with sales experience. Without knowing what business you are in, $10/month/seat sounds _way_ to cheap. You are working with businesses here, not consumers. At this price point you would have to sell about a 1000 seats just to pay for yourself and your co-founder. If you want to bootstrap and hire 4-6 people, you would need to sell a whole lot more. If you can really 'automate pretty much any business…

The logic we followed when pricing it so cheap was: we are just getting started, this will help get some revenue in quickly, etc. Will think hard and perhaps reconsider the pricing model.

Re: Ask HN: I need advice on my first B2B SaaS startup

#33

Post by oliverx0 »

barry-cotter wrote: post #26

> Our pricing model is $10/user/month. patio11: charge more Seriously, unless you’re going to be selling exclusively into businesses with over 100 employees using b your service you need to charge more. The meetings to consider whether to use your product are going to cost the buyers more in employee time expressed in dollars than your product will.

Yes, it seems a few other comments also suggest this. Will have to consider this. Really appreciate your feedback.

Re: Ask HN: I need advice on my first B2B SaaS startup

#34

Post by oliverx0 »

dkarras wrote: post #31
oliverx0 wrote: post #7

Earlier quoted context omitted.

Thank you, we also thought of accelerators as a plausible option. Part of the reason I asked the question though, is that I am curious how others are able to get from just an idea to VC funding. It sounds simple: build a great product, and get enough traction. But actually doing it, even if we believe in the product, seems to take a lot of time. Are we missing anything that other founders do? Or are the suggestions y…

It is usually about coming up with an idea that addresses a burning need. Getting enough traction becomes quicker that way and provides you with the necessary runway. So instead of getting "wow" as a response when you showcase, it becomes more like "we need this yesterday, when can we talk?"

Thanks, thats a great way of putting it. Will try to aim for this more, and iterate until we get to this.

Re: Ask HN: I need advice on my first B2B SaaS startup

#35

Post by tin7in »

I'd recommend you to use the 8 months of runway as much as you can to build and make revenue. When you run out of money you will get a job anyway, try to not stress about it right now.

Sales: Try to sell what you have and listen to customers who pay you. Pilot customers might request a lot of features that nobody wants to pay for later.

Consulting: I imagine that process automation is often implemented by management consulting firms with deep access to the company processes. You could try consulting clients while using your software. You will be able to understand better their needs and generate some revenue at the same time.

Re: Ask HN: I need advice on my first B2B SaaS startup

#36

Post by jdtbuchanan »

oliverx0 wrote: post #18
brianwawok wrote: post #15

A total runway of 12 months feels short if going enterprise. Though $10 price feels small business. What is your target business size? Is there anything you can do to stretch the runway to 24? I don’t think you want to raise a new round with 0-$40 in MRR.

Our platform is actually aimed at small and medium sized businesses, hence our pricing model. Having said that, we feel the platform has the potential to go after the enterprise as well, and could adjust pricing accordingly. I do think we will need to stretch runway, hence my question. I was wondering if outside investors were an option, but based on other comments, I am not so sure.

Without knowing the exact product I would suggest tightening up who your target market is. Generally, a product that can be for any industry of any size makes it really hard to focus. Start with a specific subset and it will make your sales outreach a lot more targeted and keep you ultra focused. For example instead of it's aimed at "small, medium and enterprise clients in any industry" think "local service companies in the US with 30-75 employees". It sounds like you might not have that ideal target market nailed down yet. Good luck!

Re: Ask HN: I need advice on my first B2B SaaS startup

#37

Post by oliverx0 »

jdtbuchanan wrote: post #36
oliverx0 wrote: post #18

Earlier quoted context omitted.

Our platform is actually aimed at small and medium sized businesses, hence our pricing model. Having said that, we feel the platform has the potential to go after the enterprise as well, and could adjust pricing accordingly. I do think we will need to stretch runway, hence my question. I was wondering if outside investors were an option, but based on other comments, I am not so sure.

Without knowing the exact product I would suggest tightening up who your target market is. Generally, a product that can be for any industry of any size makes it really hard to focus. Start with a specific subset and it will make your sales outreach a lot more targeted and keep you ultra focused. For example instead of it's aimed at "small, medium and enterprise clients in any industry" think "local service companies…

Thank you! We have definitely been struggling with this. Will try to find a more specific niche.

Re: Ask HN: I need advice on my first B2B SaaS startup

#38

Post by thinkindie »

oliverx0 wrote: post #7
sharemywin wrote: post #5

accelerators https://thembaisdead.com/list-of-startup-accelerators-and-in... pre-seed and/or angel investors freelance to stay a float. funding portals: https://www.crowdfundinsider.com/2018/03/131246-finra-approv... https://www.crowdfundinsider.com/2018/06/134408-there-are-no...

Thank you, we also thought of accelerators as a plausible option. Part of the reason I asked the question though, is that I am curious how others are able to get from just an idea to VC funding. It sounds simple: build a great product, and get enough traction. But actually doing it, even if we believe in the product, seems to take a lot of time. Are we missing anything that other founders do? Or are the suggestions y…

depending where you live there might be some local institutions giving out some cash either as a grant or as a loan with very good conditions (a combination of no collaterals, low interest rate, no equity and so on). That could be an option to stretch your runaway further and avoid being constantly worried about that.

Re: Ask HN: I need advice on my first B2B SaaS startup

#40

Post by tnolet »

I’m very similar to you. B2B SaaS. Bootstrapped. Hitting 50k ARR right now.

- 1 year is nothing. Do consulting up to two years.

- screw partnerships, pilots. They add nothing.

- Start blogging and evangelizing

- Do anything feasible to get 10 customers. Worry about pricing after that.

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