SaaS Origin Stories How to Find the Best Engineers for Your SaaS Product with Alex Levin of Regal.io
In this episode of SaaS Origin Stories, Phil speaks with Alex Levin, Co-Founder and CEO of Regal.io, an outbound phone and SMS sales solution built to drive more conversations with customers and encourage growth. He is also currently a Partner at Blue Trail Partners. Previously, he was the SVP of Growth at Handy HQ and the Director of Global Sales & Marketing at Titan Steel Corporation.
They delve into what it was like moving from B2C and into B2B SaaS, why raising money from outsiders may actually be a bad idea, why timing can make or break your business, and why you should not let it get to you just because things will go wrong.
Guest at a Glance:
Name: Alex Levin
About Dan: Alex Levin is the Co-Founder and CEO of Regal.io, an outbound phone and SMS sales solution built to drive more conversations with customers and encourage growth. He is also currently a Partner at Blue Trail Partners. Previously he was the SVP of Growth at Handy HQ and the Director of Global Sales & Marketing at Titan Steel Corporation.
Topics we cover:
- Moving from B2C to B2B SaaS
- Bringing the human being back into businesses through SaaS
- Finding a team to build your SaaS product
- Raising money from outsiders: good or bad?
- Why timing can make or break your business
- Your friends are not great customers
- Wait until you find something that people are asking you for
- Sometimes it’s not the wrong product, it might be the wrong customer
- Not everything will go right, but don’t let it put you off
- It’s all about the day-to-day execution
And more!
Key Takeaways:
From B2C to B2B SaaS
Alex talks all about how he originally worked in B2C, but when he was introduced to B2B SaaS, he realized that the business model is way better and encourages more revenue growth. He says that he and his business partner enjoyed creating startups and found that, when his original B2C company grew, they didn’t enjoy it as much. Eventually, he decided he wanted to become a founder, and they got quite lucky with the transition.
“Our whole career really had been B2C companies, we never really worked B2B. Eventually we had this idea for a B2B business and I wish ten years ago someone had tapped me on the shoulder and said ‘Forget B2C businesses, there’s this thing called B2B SaaS that’s the greatest business model ever,’ so I’m glad we made the switch.”
Finding a Team to Build Your SaaS Product
Alex and his Co-Founder weren’t programmers; they were product managers, so it was up to them to find engineers who could build their product. This meant they needed to know what they lacked and what customers actually wanted. By the time they were hiring, they knew exactly what it was they wanted and what they needed to build.
“We weren’t the ones that were going to build the product . What we found was it was our opportunity to really go and understand what we needed to build, what customers actually wanted to buy, so by the time we were hiring engineers it was very clear what we were going to build.”
Raising Money From Outsiders: Good or Bad?
One thing that gets overlooked when raising money for your business is this: once you’ve raised money from outsiders, it may breed some stagnation. You may find yourself stuck, or realizing that your business isn’t all what you thought it would be. This puts you in a rather tricky position, because you have to do something with that money. So, before raising money from others, make sure you’re absolutely certain your business idea is what you want.
“What people forget is, the second you raise money from outsiders, you’re stuck. People think of raising money as a good thing, but it’s not, because once you’ve raised that money you’re stuck for a couple of years trying to get that thing to work. It’s much better at the beginning to spend less money and use your own funds if you can, figure out if you’re convinced.”
Your Friends Are Not Good Customers
Whether you like it or not, your friends are not good early customers, because they will feel like they have to be nice to you, especially if you give them a product for free. Rather, you should aim to give your product to people who are more inclined to be honest with you. Alex argues that friends of friends are better, because you’re kind of connected to them but you don’t really know them.
“Your friends are probably not great early customers. The reason is that they want to be nice to you, especially if you don't make them pay for it, then they’re not going to tell you the truth that it’s terrible or something.”