E335 | Turning up the Saas: How productising helped David Hart create an 8 figure business

It was a daily grind of ‘win the work, do the work, get paid for the work, only to have to find more work to replace the work’ that led David Hart (known as the ‘Agency to SaaS guy’) to sell his agency and embark on a new SaaS business.

After founding digital agency Codegent in 2004, by 2014, after acquiring another agency, Thin Martian, David felt like he was on the treadmill to nowhere. In 2016, he launched SaaS business, ScreenCloud, which hit 8 figures in ARR after only six years and continues to see strong growth year-on-year. The switch has created significant financial value for him and his co-founders, investors and staff. 

David now advises other agencies and early-stage SaaS founders on scaling their own products, He sits on five boards as a NED and is the author of Productized: Stop Selling Time and Transition to Selling SaaS. 

In this episode, Dominic uncovers the strategies and mindset shifts necessary to transform a service-oriented business into a thriving SaaS company. We explore the contrasting dynamics of hiring and growth between the agency and SaaS models and the critical role of building an experienced team to achieve rapid expansion. David lays bare the exhilarating yet daunting task of burning through investment to scale revenue, the importance of aligning with market needs and avoiding the pitfalls of launching products without demand.

Discover

Start by Testing Your Idea: Before creating a product, it's important to make sure people actually need it. You can do this by asking potential customers questions that get to the heart of their problems. A good product should either help people make money, save money, or solve an important issue they worry about.

Moving from Services to Products: David transitioned from running a company offering services to selling a product. This shift allowed his business to grow faster and become easier to scale compared to offering services.

Spending Money to Grow: To grow a software business like ScreenCloud, David had to spend money up front, especially to get new customers. Investors encouraged him to spend boldly to grow quickly, even if the business wasn’t immediately profitable.

Focusing on One Thing Is Key: David realised that trying to create multiple products at once made it hard to succeed. Instead, focusing on creating one strong product helped him and his team direct their time, energy, and resources more effectively.

Learning from Early Failures: Before ScreenCloud, David worked on many products that didn’t succeed. He learned that talking to potential customers early on and finding out if they’d actually pay for a solution are critical steps to avoid wasting time and money on ideas that won't work.

Book recommendations:

April Dunford - Sales Pitch & Obviously Awesome

Rob Fitzpatrick - The Mom Test

David’s book Productized is out now

Dominic’s book Mind Your F**king Business is out now