Highlights of our Valentine’s Day Master Class Part 1. Earning logic
Ready to enhance your earning logic and grow? We are expanding our wonderful pilot group of BackedByCFO, and looking for entrepreneurs in SaaS & e-commerce to join us.
Highlights of your Valentine’s Master Class SaaS & e-commerce. Thank you everyone who made time in their busy calendars and joined our Master Class. And Big thanks to our terrific Henri Kajula, Founder of Envera & Matti Lattu, CEO of Heeros Oyj.
Listen highlights of the event in Kieku podcast! BackedByCFO account https://www.kieku.com
The Strategy is a process
Henri Kajula of Envera pointed out the importance of continuous improvement in growth company. A startup rarely have a right big vision, the most important thing is just get started. When Envera get started, Henri’s key target only was to build a profitable business in water saving services, which he came up with an idea to digitalize with a remote monitoring IoT solution based on optical reading and data analysis. Soon after launch of the remote monitoring service, business started to scale very fast.
SaaS Funding roadmap: IPO in First North Nasdaq
Heeros, founded in 2000, provides modular SaaS for financial administration. Matti Lattu, CEO of Heeros emphasized funding as a part of credibility and strategy execution. Heeros listed in First North Nasdaq in 2016 to keep identity and business continuity but also as a part of R&D and internationalization targets.
Traditional financial metrics fail to capture growth in SaaS. Public stock exchange trading in Nordics are EBITDA based, so differences between multipliers different markets like, in Nordics and the US, are significant. For a reference, check out the US markets BVP Cloud index https://www.bvp.com/strategy/cloud-computing/index
Cash is King
Cash is King in all growth phases. Organic cashflow is always the most important funding source. Cash planning clearly has a significant effect on your external funding need.
Rule number one is to focus on customer invoicing. Make sure you are invoicing promptly, as soon as your customer has done the order. Avoid any manual work in invoicing, those are only waste of time when your business is scaling up. Check your credit control process.
On the cost side, keep your burn rate in control. Don’t spend in front of revenue, spend only behind revenue. The longer payment terms you can negotiate with your supplier, the better.
Päivi is Founder of BackedByCFO with greatest passion to help SaaS & e-commerce to grow faster.
