💼 How to Dive into B2B SaaS and Get Going...
SaaS is a killer business model if you get it right – your share of a R4.9 trillion industry. And perhaps doubly so if you can go B2B; companies have the ready cash to spend on the right solution.
But B2B SaaS at scale is easier said than done – companies often want to see the product trialled in a live environment, or at least see solid case studies of its success before even considering you.
So what is the path to building this?
1. Find a problem – Corporates (B2B customers) are always looking to 1) increase revenue and 2) increase profit margin. Which they do by reducing costs in existing business (like Dischem reducing their delivery costs above, for example) or capturing market share in new areas (again, Dischem started selling medical insurance or other products to existing customer base).
Now, how do you find these opportunities?
- Check out their annual reports
- Keep up with industry trends (by reading this newsletter where they get pointed out, of course!)
2. Figure out how to help a corporate do either of those – Can you create a service and/or product that solves the problem? For example, you help Dischem get its e-commerce delivery costs down or upsell new products to existing clients. This doesn’t have to be a fully developed product, it can start with an idea, an intent and know-how. Pitch them this idea and get a pilot.
Whatever costs your service saves them, there is reason to believe that part of that saving can go towards paying for your solution. I.e. Save them R5m a year in delivery fees, you could charge R2.5 million a year for your solution (given there’s no one else that can do it for substantially cheaper).
3. Now bring the tech – Once you’ve solved the problem, introduce even more tech and replace the human effort as far as possible.
4. Multiply and go SaaS – Once it works for one, you have your case study and can sell to others using a license fee multiple times.
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