What does scaling SaaS mean? Part 1

What does scaling SaaS mean? Let me start with what scaling is not. Going from 1 to 10 customers, 100k MAUs for a consumer business or employee size from 10 to 100 is not scale in my context. All these validates that customers/ users are ready to pay for using these products. 

In my context, scaling means growth in the magnitude of 10x or more in 6-10 years or so. Let me clarify with examples (not comprehensive though) - 

• Your SaaS product/ platform grows from 50 to 500+ enterprises globally. 

• In the case of PLG, customers scale from 500 to 5k+. 

• A consumer business grows from 500k to 5M+ MAUs. 

I believe I conveyed the point now. By the way, this reading may get heavy but I promise it will be worth it … 👍 

Ever imagined how it would be to go through a scaling journey? Today, my objective is to try to narrate exactly that. As an analogy, think about teaching your kid how to ride a bicycle. No one tells us as parents that kids will fall down, their knees may bleed, their hands will get bruises and most importantly we will have to carry the fear of kids getting hurt. But falling, getting bruised, etc. is good; just keep going, trust the process and the reward will be amazing. At least no one told me this; but I intend to narrate something similar about scaling. I mentioned it will be heavy … 😇 

In a scaling journey, there are dots which can only be connected in the hindsight. I tried connecting the scaling experiences to some of the quotes in books. So you need not trust what I am writing here. I am sure these will help all of you prepare better for what may be coming during scaling. And better preparation will transform you into a better growth professional so you can build something great for users, customers and society … 👏 

Please note that these book quotes are not comprehensive; ideally I suggest reading these books and getting a scaling MBA. One more thing, these quotes may seem like theories but they are not. Example - helicopter shot by Dhoni does not fit any Cricket book but it works if executed well. Apply these quotes to your context, find and ride your own helicopter shot. 

If the ecosystem around you is not scaling, swipe up/down sisters and brothers; not scaling is NOT OK, but whatever. Let's start. 

1 - In the scale journey, expect mountains, valleys, arduous paths, and yes, fear of death too. But then what should one do? While scaling, not just people, but build the product, tech, etc. to be very very flexible while focusing on what is in your control. Here is a profound quote from the book Ikigai … 🎉 

“Resilient people know how to stay focused on their objectives, on what matters, without giving in to discouragement. Their flexibility is the source of their strength: they know how to adapt to change and to reversal of fortune. They concentrate on the things they can control and don’t worry about those they can’t”. 

2 - Scientists say that every one of us makes 30,000+ decisions per day. While scaling, teams collaboratively will make many million decisions (approximately) - some best, some maybe not so good. Remember, unless decisions are made, scale may not happen. Here is a relevant quote as guideline from the “Focal Point” book. 

“Your values are the standards you use to judge your behavior and the behavior of others. Your values are the rules you follow when you make decisions. When you are clear about your values and their order of priority, you find it much easier to make decisions in the critical moments of your life”. 

3 - Hope all is well so far. It is ok to drink a bit of coffee, but stay with me. Speed is everything in scaling. Please note that the ecosystem needs to scale in a harmonious manner. Here is a great quote from the book “The mountain is you”. I don’t know why but it took some years and a little bit of white hairs for me to actually get this. Very simple - just finish the shit … 👌

“Instead of perfection, focus on progress. Instead of having done something perfectly, focus on just getting it done. From there, you can edit, build, grow, and develop it to exactly what your vision is. But if you don't get started, you will never arrive”. 

4 - During scale, it is harder to predict which of the things in progress will scale year over year and which will not. Do not ignore the rate of scale, either up or down. Who can help scale these further? Here is an excellent quote from the book “Range”. This is the most critical things to remember while building and scaling teams … 💥 

“If you’re working on well-defined and well-understood problems, specialists work very very well. As ambiguity and uncertainty increases, which is the norm with system problems, breadth becomes increasingly important”. 

5 - Strategy, tactical approach, annual goals, initiatives, channels, plans, etc. all are needed. But how do they all progress together? Adopt the next five moves mindset. With this, the target is always 5 to 6 steps away. I am ok at chess, but Viva I always did beat you at chess. Do not look around, especially in the parallel lane. Refer to this quote from the book “Your Next 5 Moves”. 

“When you compete against people whose knowledge and skills are inferior to yours, you’re likely to win. No business is risk free, but you can decrease the risk by choosing a game in which the odds are in your favor. It's great to have bravado and believe you can beat whatever competitors are in your industry, but it's foolish to believe you can win at somebody else’s game”. 

6 - Last but not least for today, use the data at hand. Focus on the context behind the data and how it fits into the overall scaling journey. Data available now may not be perfect. Still use it as one of the inputs. Avoid the trap of endless moving targets of deeper, hidden data and insights. It may kill time. But why data? Remember, Data is and will always be one of the most important inputs and users, customers as well as partners will not act without it. See a quote from the book “The Power of Data Storytelling” … 💡 

“Data when converted into stories generate emotions, which park such data events in the audience’s long term memory while also increasing their inclination towards a recommended decision or action”.  

With these scaling quotes, I hit a SIXER for you today. More are coming soon. And, here is my inspiration … 🏆

Picture above - a pristine place in the Himalayas. There is no better inspiration for scale, guaranteed.

.....

Swagat Irsale is a Growth and Scale Advocate. He works with start ups and scale ups and helps them grow revenue and build enterprise products which users use.

You can connect with him on Linked in.

https://www.groadv.com/post/grow-revenue-the-journey-zero-to-one-billion-swagat-irsale

Swagat Irsale is featured in below Industry communities.