Finally! How to move from consultant to SaaS CEO (from a consultant who did $800k revenue last year)
Sep 13, 2023
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Co-founders of Bsolve agency took a pay cut of $150k to invest in their SaaS tool SPRobot. They discuss implementing governance to address content sprawl, their pricing model, and being South African-based. They talk about the affordable cost of living in Cape Town and funding their team through consulting profits. They interview Martin Hadding, CEO of SP, who reveals the success of his consulting company and his investment in SP Robot.
Implementing governance frameworks can help address content sprawl and improve workspace management in Microsoft applications like Teams.
SP Robot offers cost-effective pricing and has a competitive advantage in the market due to its South African base.
Deep dives
Key Point 1: Content sprawl and the need for governance in Microsoft 365
Content sprawl refers to the excessive creation of workspaces in Microsoft applications, such as Teams, leading to duplicate information, difficulty in finding content, and overall overload. To address this issue, governance frameworks need to be put in place, introducing a level of friction to ensure purposeful and well-thought-out workspace creation. The goal is to enforce these frameworks and prevent content sprawl through tools like SP Robot, a SharePoint team's governance SaaS.
Key Point 2: Target market and pricing for SP Robot
SP Robot primarily targets small and medium-sized enterprises (SMEs) and offers cost-effective pricing based on the number of workspaces and pipelines used. The average pricing ranges from $150 to $200 per month per tenant per organization. In comparison to other competitors like Haregate and Orchistry, SP Robot's advantage lies in its South African base, with a low cost of living enabling them to be cost-competitive in the market.
Key Point 3: Investment in the SaaS product and future plans
The agency, B-Solve, has invested approximately $150,000 in SP Robot. While being a pre-revenue venture, the team consists of 16 members, with six focused on developing the SaaS product. This decision to venture into SaaS was driven by the desire for scalability and repeatable income, in contrast to the constant grind of consulting work. The team is currently in the beta stage, gathering input from the Microsoft 365 community and consulting clients to refine the product before the official launch in the next few months.
Bsolve agency did $800k revenue in 2022. 50/50 Co-founders decided to take a pay cut to invest $150k in their new SaaS tool SPRobot to help with document management. Will they hit $1m ARR in their first 12 months?
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