There are many aspects to a growing a successful SaaS business. Internal organisation, role responsibility and competent operation of the functional areas like finance and support are all pretty important. Before they consider injecting capital, pretty much any investor is going to make sure they are happy with how the business is structured and operates (or how it will operate).
However, a key objective of attracting capital is the need to power the delivery of new growth. The marketing function is critical. Inevitably any investor worth their salt is going to take a keen interest in the chief tool for organising the marketing effort – the marketing strategy document. (You do have one, don’t you?!)
The quality of marketing strategy documents varies enormously. Often this reflects the time, effort and budget that has been put into creating the content. However, when it comes to what goes in it, should you ask 10 marketing directors what they would put in a strategy doc, the topics covered would be much be the same from all of them.
Critically, investors want to know how much budget is required and how you’ll spend it.
To arrive at the numbers that are indicative of the budget, you need to include the key numbers in the business, such as.
You have to be explicit; as an example, it maybe you are a startup so need to express the need to hit £20k MRR to prove minimum viable product (MVP). You can then set a target of say £100k MRR as a next stage and work towards numbers that are indicative of the marketing budget, you’ll need to achieve it.
Investors need to understand these numbers and how you’ll hit them. It is the need for this understanding that underpins the creation of the document: This is the main point of having a strategy in the first place.
We really can’t stress this enough. Investors need to understand that you are good around money matters. Be sharp on the numbers you’ll hit, and how you’ll hit them.
When you watch Dragon’s Den or Shark Tank it never fails to amaze how some people limber up looking for investment and can’t give a good account of themselves when discussing the key numbers. Many flounder with the basics because they’re just not good with numbers; some are clearly trying to fudge it, but others look like they’ve just flown in from cloud cuckoo land – they are too unrealistic.
When you go looking to court investors, think like a Dragon; be certain, confident and realistic. Or you run the risk of looking like a reality TV entrepreneur that wants the ground to open up and swallow you because you have just been verbally nailed to the floor by a Dragon or a Shark because of your failings around money matters…
Should you not have the skills, time or resources within your SaaS venture to create an investor winning marketing strategy, why not get in touch? We’ve got a decade of experience of working with SaaS businesses to help them flourish, grow and achieve their objectives. We’d be only too pleased to help. Get started with a free consultation.
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