If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

In other words, software companies must grow quickly to survive. Slow growing businesses suffer from the lack of oxygen that fuels growth. Raising money is more expensive. Hiring becomes challenging. Without the capacity to invest capital in growth or the ability to compete for top talent, the slow growth cycle reinforces itself.

The McKinsey study breaks down rapid growth into two parts. In part one, the authors identify five key factors of success in the early stages. Large market; logical revenue model; rapid-adoption; stealth/secrecy; proper compensation of the leadership team.

This list will surprise no one, except perhaps for stealth. Is secrecy and stealth a prerequisite to success for every massive software company? For most bottoms-up businesses, stealth isn’t a competitive advantage, but awareness is.

Part two is more interesting. The defining characteristic of enduring software businesses is they “master the transition from one act to the next.” Fast-growth startups must metamorphose constantly because the market demands it of them.

CATEGORY
SaaS & Tech Growth Strategy

SOURCE
Tomasz Tonguz

SaaS & Tech Growth Strategy Articles

  • When to choose a Product-Led Growth Model
    Even if you are already in a Product-Led model, we'll be discussing a framework for making that decision, some of the pros/cons of doing so, and even some unique alternative ways to look at a product-led growth model.
  • What’s the difference between marketing and strategic marketing?
    Marketing and strategic marketing is sort of like the difference between a piece of cheese and using that piece of cheese to make some delicious lasagna.
  • Strategically Determining Your Tech Business Models, Markets & Industries
    An in-depth exploration across the spectrum of tech markets, industries, offerings and models to find growth opportunities through understanding the competitive landscape and to envision where our endeavor fits in this grand scheme.
  • Building Personas for SaaS & Tech Companies
    Building Personas for SaaS & Tech CompaniesStaying ahead of the competition and connecting with your target audience is paramount. To achieve this, SaaS companies rely on a crucial tool in their arsenal: persona building. Table of Contents Getting to Know Personas for Your SaaS Business Leveraging SaaS Marketing Agencies like Insivia to Forge Robust Marketing Pillars […]
  • Proven SaaS Marketing Strategies Every Agency Should Implement
    Proven SaaS Marketing Strategies Every Agency Should ImplementEffective marketing is a cornerstone of success for Software as a Service (SaaS) companies in today's competitive digital landscape. These companies offer cloud-based solutions and services that rely heavily on recurring subscriptions, making consistent customer acquisition, retention, and growth vital for their sustainability. In this context, SaaS marketing […]
  • The Ultimate Guide to Choosing the Right SaaS Marketing Agency
    The Ultimate Guide to Choosing the Right SaaS Marketing AgencyTable of ContentsThe Role of SaaS Marketing AgenciesAssessing Your SaaS Marketing Needs: A Crucial Step Towards SuccessDefining Your Selection Criteria: Choosing the Right SaaS Marketing AgencyResearching and Shortlisting Agencies: Finding the Right SaaS Marketing PartnerThe Role of SaaS Marketing AgenciesStrategic Planning: SaaS marketing agencies work closely […]
  • What a Web Design SaaS Agency Can Do For You Organization
    What a Web Design SaaS Agency Can Do For You OrganizationTable Of Contents What do Web Design SaaS Agencies Do? Top 10 Elements to a Successful SaaS Website Design What Can Web Design SaaS Agencies Offer? Why Utilize a Web Design SaaS Agency What do Web Design SaaS Agencies Do?In the dynamic realm of digital […]
  • How a SaaS Agency Will Change Your Conversion Rates
    How a SaaS Agency Will Increase Your Conversion RatesIn the dynamic landscape of the technology industry, SaaS companies face the perpetual challenge of increasing conversions to drive growth and establish a formidable market presence. Effective marketing for tech companies, particularly SaaS companies, requires a strategic blend of innovation, customer engagement, and data-driven approaches. Collaborating with […]
  • 20 Strategy-Changing Stats from a UI UX Design Agency
    20 Strategy-Changing Stats from a UI UX Design AgencyUser Experience (UX) and User Interface (UI) design play a pivotal role in the success of Software as a Service (SaaS) companies. As the digital landscape evolves and user expectations continue to rise, the significance of exceptional UX/UI design has become imperative for SaaS companies to remain […]