Originally published in Protocol

Let’s not underplay the current situation — we are in crisis mode. Not because we’re heading towards a recession, not because SaaS companies might shrink, but because of all the unknown unknowns. Fear causes irrationality so SaaS CEOs must demonstrate reasoned leadership, making decisions that protect the business, and the team, for the short and long-term.

Remember — long-term thinking is good. But not if you don’t exist. On the other side — too much short-term thinking is bad — because there won’t be a long-term if you take too many steps backwards.

I hate to over-use our favorite phrase, but now really is a time to exercise ‘common sense’. …

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In this article I want to introduce Natural Capital — as we define it at Soilworks — explain why it is a critically important resource and why businesses and entrepreneurs should get involved.

Natural Capital is the world’s stock of natural resources, which includes geology, soils, air, water and all living organisms (from Wikipedia).

For the the last 100 years or so we have been depleting our Natural Capital at an ever increasing pace. The state of our Natural Capital now is one that will not support future generations, and is already impacting this generation.

(Originally Published on Techcrunch)

We’ve had a great decade long run in SaaS — abundant capital, thriving economy, and a massive existing market shift from on-premise to Cloud.

But the good times will end and challenges are coming.

I’m not predicting when it will happen — maybe it’s the spread of COVID-19, or maybe the market recovers and goes on to set new records — but one thing is for sure, recession will come, it always does.

Since a lot of SaaS leaders have never run a business through one, it might be helpful to share some ideas on how to be ready for the inevitable slump. One of the greatest assets a SaaS business has is high margin, recurring revenue — that should provide more leeway in making changes to get through a downturn, than many other types of business. …


Ed Byrne

Partner at Scaleworks. Growing SaaS businesses.

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