The Business of RaaS: True Alignment

Existing Recurring Behavior vs. New Recurring Behavior (A+) One of the most compelling aspects of The Farmer’s Dog investment was that the service tapped into an existing recurring customer behavior. Pet parents purchase food on a recurring basis, and dogs eat the same food multiple times per day for their whole lives. Unlike humans, who feel the n... See more

Customers are willing to pay more over time than you could have charged them up front because they are paying for the continuous delivery of value.

The median bootstrapped B2B SaaS company currently spends around 90% of its annual recurring revenue on costs—25% on go-to-market strategy and execution, 24% on research and development, 15% on administrative and miscellaneous expenses, 13% on website hosting and implementation, and 10% on customer retention. Each of these categories of cost is now... See more

Another reason why operational efficiency has taken priority over operational agility is the investment classification systems used in many enterprises. A number of classification schemes are used today, but they generally follow along the lines of that offered by MIT’s Computer Information Systems Research group: infrastructure, transactional, inf

... See more