SaaS Challenges: Balancing Quality Tools and Fast Growth
Rapidly growing companies often outgrow their digital tools, and conversely, SaaS solutions don’t always keep pace with fast growth. As mentioned earlier in the series, this type of growth is similar to outgrowing our wardrobes before realizing that nothing fits properly. What’s more, executives often rely on multiple software programs or third-party platforms for daily business operations, complicating many growth plans. The juggling act creates loads of issues, no doubt — but how do you navigate SaaS challenges successfully?
Rho, a leader in corporate cash and spend management solutions, and Founder Shield, a tech-enabled commercial insurance broker, teamed up to create a three-part Founding to Funding series highlighting key elements of de-risking the traditional VC-backed journey. The final post in the series provides a few critical tips for balancing your SaaS solutions with your momentum.
Leaders of rapidly growing companies tend to have a “whatever it takes to make it” mindset. While this scrappy attitude often catapults startups toward more profitable ventures, it can quickly become robotic.
For example, instead of diligently tracking a spreadsheet, companies often continue using networks and software regardless of the cost. It’s not because they enjoy burning holes in their pockets; however, leaders can quickly overlook the cost of SaaS solutions amid the daily grind.
Thankfully, there’s a better way to get your company’s vision and growth expenses on the same page. Consider adopting an automatic and continuous monitoring system to stay on top of spending.
This collaborative IT strategy will help you stay within budget, ensuring your SaaS solutions align with your growth rate and costs. With Rho's powerful corporate cards and budgeting tool, you can create a dedicated SaaS spend corporate card tied to a dedicated budget that automatically keeps track of and monitors your software expenses.
In addition to better managing your growth expenses is to monitor your subscriptions and digital applications. It’s not uncommon for leaders to fall into a rut of buying apps before truly needing them or paying for overlapping subscriptions. While this might seem like another burning hole in unsuspecting pockets, it’s more of a “founder maze” than anything else. After all, navigating a fast-growing business’s operations is a tough gig.
For example, many leaders have a software program or third-party platform for each business operation, from accounts payable to commercial banking to corporate cards. This approach often results in expensive and unused features, not to mention scattered cybersecurity efforts. But what’s the alternative?
Consider using an integrated platform to help align your efforts and keep track of your subscriptions. When you’re free from operating in silos or hassling with overlapping subscriptions, you can enjoy a more seamless experience and better monitor your spending inefficiencies.
In the early stages of a company, onboarding and offboarding are relatively straightforward. Leaders wearing many hats usually handle payroll, ongoing training, annual reviews, etc. Managing a handful of people isn’t a massive undertaking. However, when your ten-person team turns into a 100-strong workforce, haphazard HR procedures won’t cut it.
What’s more, employment practices liability (EPL) litigation has increased in recent years, mainly because of remote work and various social movements. These dynamics make modern HR procedures necessary.
One solution is to encourage your IT specialists and HR team to collaborate. The paramount goal should be to establish clearly defined procedures for every new hire or onboarding employee. Enable this sophisticated approach to trickle down to every part of the organization, from ongoing training to talent acquisition.
Growing means traversing new territory, which usually brings risks along the way. Nowadays, it’s not if you work on the Cloud; it’s when. And, of course, plenty of compliance regulations come with your new Cloud strategy. Plus, remote and hybrid work might now play a role in your daily operations, muddying your risk landscape.
In navigating these new exposures, have you also updated your risk management plan? Are your insurance policies adequate, and do you have a recovery plan should a loss occur (i.e., downtime, data breach, etc.)? Also, have you updated your employee handbook and cybersecurity training programs?
Moving forward does little for your company if you haven’t protected your hard-earned assets. A trusted commercial insurance broker can help you sort through the nitty-gritty of coverage, such as policy limits and required best practices. However, it’s up to you to maintain your risk management standards across your software stack.
Finally, SaaS challenges aren’t hurdles too significant to leap over. With the support of strategic business partners and top-notch tools, you can achieve your growth goals and make a splash in your industry.
Wil Hamory is a Vice President at Founder Shield. Wil aims to match the pace of business of Founder Shield’s innovative clientele to provide tailored insurance solutions at scale. He has been involved in various emerging industries and assisted many of Founder Shield’s On-Demand and FinTech clients to meet legal requirements while positioning them to expand rapidly.