Is the SaaS market saturated?
What happens when we hit the next recession?
I don’t want to end this issue with a downer but Rory O’Driscoll (partner at Scale Venture Partners) offers some thoughts about what might be on the horizon for SaaS markets and what to do about it.
- Try to develop software that is used in core business processes (eg accounting systems, CRMs). It’s hard to replace. If you’re integrated into 2 or 3 other systems, it’s unlikely you’re going to churn even in a down market.
- If you have a “nice to have” product, create a “must have” product that you can sell to the same customer base. Nice to haves are the first to be axed in a downturn.
- Target customers that are recession proof.