- I'll often get asked,
TK, why are you so obsessed with SaaS Businesses?
My entire channel, this channel, this YouTube channel
is dedicated to helping SaaS startup founders
navigate the path to product market fit,
navigate the path to the next stage of growth.
The last 10 years, I've spent building,
scaling, and exiting my own SaaS Business
and then helping exit the business that bought mine,
all SaaS businesses.
So why am I obsessed with them?
Why are SaaS Businesses so incredible to me
that even today,
I spend all of my time helping SaaS founders
scale their businesses.
I have my own SaaS Business that I'm building out.
What's the deal?
In this video, I'm gonna explain to you exactly
what the SaaS Business model is,
and why it's just so incredible to me,
why I'm obsessed with it?
Intro!
(upbeat music)
What's up everybody!
Welcome to Unstoppable.
I'm TK, and on this channel,
I help SaaS startup founders navigate the path
to product market fit,
navigate the path to the next stage of growth
with an unstoppable strategy.
If you are new to our community, welcome!
Be sure to hit the subscribe button
and that Bell icon because,
I drop an episode to help SaaS founders thrive
with an unstoppable strategy,
every single Sunday, Wednesday, and now Friday.
So be sure to hit that subscribe button and Bell icon
because I drop an episode and you'll get notified
with the TK energy and the quarantine hair!
All right, so SaaS Business model,
why are they so incredible?
Why are they so powerful?
You could go and build any kind of startup,
but why do I love SaaS Businesses?
I'm gonna explain that to you
into the three core principles.
These are principles that I've developed
just in my own journey, the ToutApp journey.
and the Marketo journey
both are very different scale SaaS Businesses.
Before that, I was part of the Plaxo journey,
the HipCal, like I've just done SaaS Businesses forever,
this is why I love them.
So if you're excited to dig in, go ahead and smash that like button
and let's go to reason number one.
No, seriously, Please smash that like button
for the YouTube algorithm,
really, my team it means the world to us.
Okay, now, I'm gonna go into number one.
All right, but let me just explain real quick,
what a SaaS Business is for those who don't know,
I don't wanna assume anything.
SaaS Business is software as a service.
And when I really say SaaS Businesses,
and what I'm really talking about are B2B SaaS Business.
This business software, enterprise software.
This is small business model software.
Essentially, these are businesses that create software,
that helps other businesses
really get their job done better.
They help them make more money,
or save money, or be more efficient.
And they charge a monthly recurring fee,
and the software is delivered through the web,
or through mobile, whatever it may be.
That's the SaaS Business, okay.
All right, I feel like I had to get
that explanation on the way.
So reason number one,
this applies to whether it's SaaS Business,
or just a software business.
They said they're Asset Light.
Asset Light meaning, there's no factories
or heavy equipment required
unless you count a Mac Pro or something,
and there's no data centers that you need anymore.
Before, in order to operate a SaaS Business,
you needed to go get data center,
you need to go buy servers and lease them.
You don't even need to do that anymore
because of AWS.
So, they're Assert Light businesses.
You can operate your team from anywhere,
people can be part-time,
you don't need any factories or locations
now more than ever.
It's an asset light business
and what you create is in the cloud.
So, you don't need to store it anywhere, it's incredible.
So they're asset light businesses.
Why does this matter?
Because asset light businesses
mean they're usually less capital intensive.
You can get started for a lot cheaper,
you don't need to go get a lease on a place,
you don't need to go buy heavy equipment.
It's just cheaper, it's cheaper to actually get started.
And on top of that, even as you grow it,
because it's asset light,
it's just less headache to maintain.
So, that's reason number one.
I just love software and SaaS Businesses.
Reason number two,
is that they're infinitely scalable and Global.
When it particularly comes to a SaaS Business,
you just need to create the software once,
you need to actually host and operate it,
on one instance and it's infinitely scalable
because of the cloud and it's global
meaning, anywhere in the world
except maybe like, I don't know, China or Russia,
Anywhere in the world, English speaking world,
your software can be used, you can create customers
and they can use your software
to drive success for their business.
So, almost immediately,
not only do you have no assets that are required,
no big assets,
on top of that, you're infinitely scalable,
you just create once and multiple people,
infinite number of people can use it and it's global.
Just take a step back for a second,
and when you think about any other kind of business,
this is a dream kind of business
when you think about the fundamentals around it.
And the idea that you can actually have unlimited customers
and scale it infinitely
because of the cloud now, is even more powerful.
Okay, now, those are the two things,
and I've got two more and I've got number three
and I've got a bonus.
But before I do that, let me just pause here for a second.
If you start to understand my obsession
with SaaS Businesses, how incredible they are,
just like cool they are,
can I just get a, YES in the comments below,
just so I know you're with me.
And also, if you think about starting a SaaS Business
or you're scaling it,
be sure check out my 10 Point SaaS Business Checklist.
I'll tell you more about it at the end of the video
but let's keep going.
Reason number three,
is you've got recurring revenue that compounds over time.
Recurring revenue that compounds over time,
it means that when you acquire a customer,
and I'm assuming you're doing your business right,
your product's great and the channel's managed,
we cover other videos around that.
Assuming you do that,
you actually bring on a recurring revenue source.
And if you play your cards right,
that customer is gonna be with you
for three years, five years, maybe even 10 years
if you play your cards right.
And not only that, usually, with a B2B SaaS Pricing Model...
By the way, I did a pricing model video right here
that you can check out, a link to it below, don't go yet.
If you do it right,
each of your customers will spend more with you over time
as you bring more success to them,
they'll add more seats, they'll have more usage.
That means that every customer
will actually pay you more and more and more
and more and more, for as long as they stay with you
which could be forever.
That's the power of a recurring revenue,
SaaS Software Service Business, that's incredible, right?
So not only, is it asset light,
not only is an infinitely scalable and global,
it's also recurring revenue.
And because it's recurring revenue,
'cause a certain amount of revenue
is predictably going to come.
the valuation that you can get for your business,
whether it's to fundraise, or to exit,
or just to operate and use it as an asset
to go loan money on, is way higher
because of that recurring revenue
and the predictability about it.
It's basic economic theory, if something is more reliable
and predictable, and there's feature money to be add,
then it's valued higher,
and that's what a SaaS Business brings you.
So, those are the three things,
but I do have a bonus one for you.
And the bonus is, there is a big big platform shift
that's gonna be happening with B2B SaaS Businesses
that make them even more exciting,
not for these core business fundamentals
but because specifically what's happening
to B2B SaaS Businesses, and that's AI.
There's gonna be massive opportunities in the next 10 years
to solve business problems in a wholly different way
because of AI becoming more democratized
because of AI developing faster.
So if you think about the last 10 years of SaaS Businesses,
software services, business software,
even the last 20 years.
First, we figured out how to just write stuff down,
databases were the biggest thing.
Second, we figured out how to get every worker
to do it through software so there's workflow
so the database has better insights.
We're now at a point where most business software
is all about storing data, editing data,
updating data, looking at data, looking at analyst
and human beings making decisions
to do what's next to run a business, that's gonna change.
In the next 10 years that is gonna shift
to human beings actually just monitoring
while the software runs the workflow,
looks at the data, analyze the data,
looks at other data
and recommends things that you should do,
and maybe even makes certain decisions.
That kind of AI on business software
creates a whole new set of opportunities for SaaS Businesses
over the next 10 years
and that's what makes this incredibly exciting
and even more powerful.
So, to recap, just from a pure business point of view.
Number one, they're asset light.
Number two, they're infinitely scalable and global.
And number three, you have a recurring revenue source.
And number four, there is a macro-trend,
there's a big technology breakthrough
that's about to happen, AI that's gonna create
a whole new breed of business software
that's gonna be more powerful than ever.
It's no wonder, I spend day and night
whether it's to build my own SaaS Businesses
with my co-founder or to help the SaaS founders
and my SaaS school, build unstoppable go-to market machines
to actually scale their SaaS Business, this is all I do.
This is why I'm obsessed with them.
This is why I created this channel
'cause I want to be like, I'm happiest when I'm in a room
filled with SaaS founders,
building incredible software.
And men!
There's so much opportunity out there
for creating B2B SaaS software,
it's just...
It's mind boggling to me.
The other thing that you wanna remember,
is yes, there's lots of industries
that are at the cutting edge of adopting software,
but there's also so many industries that are still
on Excel spreadsheets
that still haven't digitized,
that are barely starting you Zoom now,
because they have to.
So this means that it's not
just about the cutting edge of business software with AI
that's the opportunity,
it's older industries that haven't digitized it,
haven't embraced SaaS Businesses yet
and that's the power also.
So, I wanted to give you an explanation
of why I'm so obsessed with the SaaS Business model,
why it's so powerful.
Now that you know what a SaaS Business is
their model is so incredible.
If you're looking to start scale suspends,
check out my 10 Point Checklist,
that walks you through exactly the right questions to answer
to really hone in on the idea and the strategy
for building your SaaS Business.
You can get that by following the link below,
our 10 Point SaaS Business Checklist
or just go to TKKADER.COM/SAAS-CHECKLIST.
Now, I'm actually opening up a new series, every Friday
I already do an episode every Sunday and every Wednesday
to actually help you scale your SaaS Business,
help with the go-to market machine,
help you actually come up with that honing
with the right idea to start your SaaS Business.
So I'm adding a third thing,
I'm building my own SaaS Business along with you,
I'm not looking to be just a talking head
that just theorizes about
all these great things that are happening.
I wanna have skin in the game
in this thing that I'm betting on
about the over the next decade
and that's B2B SaaS Businesses.
So, as I build my SaaS Businesses,
I'm gonna add one more episode every week.
This is gonna be the third episode,
where it's gonna be a little bit more candid.
It's not gonna be all like, I have all the answers,
it's gonna be like, Well I'm working on this business.
One of my SaaS Businesses that we started
is UnstoppableSunday.com,
and purposefully pick something that's really hard
you wanna pick hard software, it's Consumer SaaS Businesses
that is around mindset.
Like if you can sell,
that's like walking into jail on your first day
and picking up fight with the biggest bully
that you can find.
Why do I do that?
I did that because I'm like,
if I could conquer this, I can help any SaaS founder
with their SaaS scaling problems.
So, every Friday, I'm gonna be sharing behind the scenes
on how I'm building out that SaaS Business,
the challenges that we're coming across,
how we're solving them.
How we're using the principles that we teach
instead of SaaS school on this channel
to solve the problems in our own SaaS Business.
I'm really excited about this new stage.
So, if you're new, be sure to hit the subscribe button
and that Bell icon,
if you're already part of a community,
first of all, you should join SaaS School,
so we can work together in scaling your SaaS Business.
And second of all, I'm really excited to share
this part of the journey with you
to show you how much we really believe
in B2B SaaS Businesses and how powerful they can be.
In the last 10 years, I started my own SaaS Business.
I raised some of the best and I sold it,
and I helped sell the company that bought mine.
It has been an incredible journey and I fell in love
and I realize that this is what I love doing
and this is why I created this channel.
This is why do these episodes,
this is why we keep adding more episodes,
this is why we create the program.
So, join us in this journey, it's incredible.
And I hope you got value from this video.
If you did, be sure to smash up like button.
If you have a friend that's a star founder
or pre founder, please share this video with them.
Maybe it'll inspire them to start B2B SaaS Business.
Maybe it'll inspire them to start something else.
We just wanna get our message out there.
And lastly remember,
everyone needs a strategy for their life and their business
and when you are with us, yours is gonna be unstoppable!
I'm so incredibly excited about this new chapter
and this new stage.
I'm TK, join our movement,
join the Unstoppable Movement,
let's go build incredible SaaS Businesses,
and I'll see you in the next episode.
(orchestral music)