Blue Horizon’s reading list is a curated collection of articles for SaaS founders and management teams. We are entrepreneurs and operators who have lived through the process of founding and scaling software companies. Here are the articles and resources we found useful this month.
ZoomInfo Deep Dive
On OnlyCFO’s Software World
Most venture backed software companies have built bad habits of inefficiency since their founding and investors have supported it in the pursuit of growth. I am all about growth…but if radically inefficient and the company struggles to turn a reasonable profit, then what’s the point. I doubt most public software companies can reach the FCF margin levels of ZoomInfo but many companies still trade as if they eventually can.
A Few Notes From Our Tailored Shareholder Report Webinar
by Synthesis Technology
At once the TSR is much closer to an institutional fact sheet than what’s been found in the traditional shareholder reporting communications, yet it’s a fact sheet with 8 SEC-mandated data sets, in addition to whatever else a fund manager wants to include. What this means is that the document has to be longer than a traditional fact sheet, yet still adhere to the plain language standard, as well as maintain the “concise” mandate from the SEC.
Embrace Startup Failures
by David Cummings
While failure is not the objective, we celebrate the courage to take risks. Failure is an inherent part of the entrepreneurial journey. By acknowledging and learning from it, we set the stage for the next round of entrepreneurs to enter the arena.
Often, in place of a proper churn analysis companies operate and make decisions based on opinions, hunches and best guesses. As a result, the root cause of churn problems goes undiagnosed, and the cycle continues…A churn analysis should strive to answer four key questions:
▪️ Which customers are leaving by segment?
▪️ What is the root cause of their departure?
▪️ Based on the findings, which customers are likely to churn in the future?
▪️ What can the company do to reduce customer churn?
Blue Horizon acquires and invests in profitable software businesses with stable recurring revenue streams. The Blue Horizon platform combines long-term capital and industry expertise with an operating model that enables businesses and their leaders to focus on growth and profitability.