It is no secret that 2022 was a brutal year for software companies. Valuations have been slashed, inflation continues to rise and layoffs are rife. Whispers of a possible recession have turned into chants. Once-high-flying companies are now struggling to attract new capital to sustain their growth, leading SaaS executives to have a heavy focus on profitability.
The silver lining to this dark cloud: downturns coincide with a surge in startup activity. People who have been laid off or woke up to find their stock options suddenly worthless will choose to bet on themselves. You’ll finally jump at the chance to turn that nagging idea into an actual product. And they will build a company with the discipline that comes with a macro environment that values capital efficiency over growth at all costs.
In short, the best software companies of the 2020s will be built over the next 12 months. But the path to building and scaling a great company in the 2020s doesn’t look the same as it did in the past.
Let’s unpack the changes and principles for developing, distributing and monetizing products in this new era. the age of connected work. I’m going to focus on six of the most fundamental principles that apply to almost every PLG product.
Create for the user
The classic B2B playbook focused almost exclusively on executive buyers. The actual end users of a product were an afterthought.
Now the B2B buyer’s journey begins with the end consumer. They discover software products, share them with colleagues and tell their boss what to buy. Product engagement sets the tone, and then buyers follow users. You should think carefully about the needs and experiences of the people who will actually use your products, not just those who will sign the order.
Build to be discovered
Software companies used to throw money and corpses at getting noticed by the executives of big companies. Expensive customer acquisition costs weren’t a problem as long as you could maintain healthy revenue growth. Now potential buyers feel bombarded by the constant barrage and want to unsubscribe (more and more are even using tools like Closed to mute the unwanted emails).
OpenView’s Kyle Poyar shares how to build a standout software company in the 2020s – TechCrunch Source link OpenView’s Kyle Poyar shares how to build a standout software company in the 2020s – TechCrunch