E162: Why Managing Profitability for B2B SaaS Never Goes Out of Style

by Sean Boyce

Summary
Sean discusses the importance of managing profitability for B2B SaaS companies and why it should always be a goal.

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Key Points

Growth for growth’s sake trend in the VC world has led to historic numbers of failures of tech products and B2B SaaS product companies.
The economic conditions have changed and interest rates have risen considerably, making solid business fundamentals and economics more popular among investors.
Managing towards profitability should always be the ultimate goal for B2B SaaS products.
Companies should focus on healthy business fundamentals and economics to run a sustainable business.
While capital may be needed to get started, companies should manage towards profitability as soon as they can.
Managing towards profitability allows for more control in the long run and a more sustainable approach.
Few companies have successfully raised round after round of investments for growth’s sake.

Quotes

“Healthy business fundamentals and economics are key to running a sustainable business.” (01:29 – 01:37)
“You need to be able to take in more than you spend, but you need to be able to do so in a manageable way.” (02:19 – 02:24)
“Now that’s come back into, or it’s become more popular, I guess, again. But in my opinion, it never really fell out of style.” (03:40 – 03:49)
“So long story short here, despite the trends that happen over time, if you manage your B2B SaaS product and business towards profitability, that’s something that won’t go out of style and you’ll have more control in the long run because that approach will be more sustainable.” (03:58 – 04:14)
“Despite the trends that happen over time, if you manage your B2B SaaS product and business towards profitability, that’s something that won’t go out of style and you’ll have more control in the long run because that approach will be more sustainable.” 04:01 – 04:14

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