97 How to master the financials to create success in SaaS with Anthony Nitsos of SaaS Gurus

The EIS Navigator

Software-as-a-Service (SaaS) founders rightly focus on their product and market, but sound finances underpin any success. Anthony Nitsos founded fractional CFO business SaaS Gurus after working in a couple of successful exits. He has seen the inside of many SaaS businesses so has lots of experience in developing good practice and seeing the mistakes that founders make. In this episode, we tap into that knowledge.

Amongst other topics, Anthony discusses:

• balancing different financial metrics
• sensible gross margin targets and when companies should be hitting them
• changes in SaaS valuation multiples
• the value of market expertise in generating success
• sales cycles and how they differ in B2B and B2C
• finding the right first sales person and who the next recruits should be
• when to bring in a CFO (and its earlier than most think)
• the value of benchmarking
• the difference between finance and accounting in companies
• how to prepare for an exit

Its a great conversation, with Anthony bringing lots of insights from his vast expertise for founders and investors alike.

00:50 Anthony introduces himself

04:45 what financial metrics matter and the difference between venture-backed and bootstrapped businesses

09:45 gross margin - good targets and when you should be hitting them

13:30 how valuation multiples have changed in SaaS

15:45 patterns in CAC and trends in software purchasers

18:05 how to you know you have product/market fit

20:00 difference in sales cycles between B2B and B2C

23:30 the value of market knowledge and how startups are not for on the job training

24:30 why its easier to move from enterprise to SME than vice versa

25:45 how finding the right first sales person is the biggest challenge

31:45 building a sales team

37:00 when to bring in a CFO

39:30 the merits of building finance function when its pre-revenue

42:20 the value of benchmarking

43:15 most companies have problems

45:00 the difference between accounting and finance

49:20 preparing for exits - how acquirers look at finances

56:00 why founders should know what short of exit they want

60:00 favourite questions

Links

SaaS Gurus website - https://saasgurus.io/

Free ebook on "SaaS Secrets for Financial Triumph" - https://saasgurus.io/lab

SaaS Gurus contact page - https://saasgurus.io/contact/

Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listen

Suggested books and media

Measure What Matters by John Doerr

Dune

Bio

Anthony Nitsos,

Founder & CEO, SaaS Gurus

Anthony Nitsos elevates your financial strategy to meet challenges and drive your company value. Working with pre-seed to Series B stage SaaS startups, he ensures that founders have reliable metrics and a solid understanding of the true economics of their business to maximize valuation. He optimizes financial operations, sales operations, human resources operations, and risk management systems. He’s worked with various startups, including two unicorn exists. Learn more at SaaSGurus.io.