When it comes down to it, SaaS businesses are valued on their ARR, but surprisingly, some still choose to manage the metrics and analytics that come as a byproduct of their order to cash process themselves. What they need is a platform, because having a single source of truth that drives all these metrics can’t be understated. Today’s guest is Tim McCormick, CEO of SaaSOptics, a platform that provides this very service. Specifically, SaaSOptics is a subscription management platform that provides early-stage and growth SaaS businesses with subscription billing, revenue recognition, financial reporting, and robust SaaS analytics. In our conversation with Tim today, we get into his career in tech running SaaS businesses in the security and energy management space, and the multiple exits he has orchestrated. He then dives into what SaaSOptics does and how they run their business to keep seeing such big growth. He gets into how SaasOptics automates the order to cash process, effectively sitting between the CRM and the general ledger. Tim talks about the metrics SaasOptics provides, their value-based pricing model, and how they balance marketing and sales in order to grow. We hear about the structure of their sales team, and their model of product cycles based on market changes too. There are around 30 000 B2B SaaS businesses globally thus the services SaaSOptics provides can’t come at a better time, so tune in to find out what it’s all about!
TIME-STAMPED SHOW NOTES:
- [00:31] Before we jump into today’s interview, please rate, review, and subscribe to the Leveling Up Podcast!
- [00:47] Tim’s career in marketing and exits in SaaS tech to founding SaaSOptics.
- [02:41] Why Tim keeps on exiting out: loving operating and helping the younger generation.
- [03:41] Vulnerability scanning and how it bridged Tim’s work in security and energy managing.
- [05:40] What SaaSOptics do to automate revenue recognition for smaller SaaS businesses.
- [08:00] Metrics SaaSOptics provides to help their clients get financing.
- [09:45] How SaaSOptics makes money by billing proportionately to clients’ revenue.
- [12:16] Ways SaaSOptics is growing: a blend of marketing/sales, and an account-based model.
- [13:35] The structure of the SaaSOptics sales team and their service cycles.
- [14:35] Which revenue point customers start using SaaSOptics at: immediately if they’re smart!
- [17:05] The relationship between product innovations and watching the market.
- [19:07] How Tim conducts his market research by assessing potential clients’ systems.
- [22:16] Tim’s favorite books: The Lean Startup, Good to Great, The Millionaire Next Door, etc.
- [22:44] A favorite business tool of Tim’s: FullStory.
- [23:59] Companies Tim is following: Tesla, Pendo, and Salesloft.
Resources From The Interview:
- Tim McCormick
- Traction Conference
- Internet Security Systems
- Tom Noonan
- David Ryan
- The Mom Test
- Kyle Porter
- Must read book: The Lean Startup, Good to Great, The Millionaire Next Door
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