How to Create an Effective SaaS Company Structure

No one ever said starting a SaaS company would be easy, but with the right planning and execution you can set your business up for success. One of the key aspects of any successful SaaS company is its structure, and getting this wrong can lead to ruin. According to Melloexperts, “9 out of 10 startups fail,” often due to poor management and decision-making.

To help you avoid this fate, we listed below some of the best ways to create an effective SaaS company structure. So, whether you’re just starting out or you’re looking to make some adjustments, read on for tips that will help guide you on your way!

Elements of an Effective SaaS Company Structure

Before we get to the tips, it’s important to first understand the elements that go into an effective SaaS company structure. Keep the following in mind as you’re planning your business’s organizational strategy:

Defined Roles and Responsibilities

One of the most important aspects of any company structure is making sure that everyone knows their roles and responsibilities. This is especially important in a SaaS company where teams are often distributed and work remotely. By setting clear expectations from the start, you can avoid confusion and misunderstanding down the line.

Clear Communication Channels

In order for a SaaS company to run smoothly, it’s important to have clear communication channels in place. This means setting up systems and protocols for how information will be shared between team members. Without this, there will be confusion and chaos, which will lead to inefficiency and potential mistakes.

Scalability

As your SaaS company grows, it’s important to have a structure in place that can scale with you. This means having the flexibility to add or remove team members as needed, and being able to adjust your processes as your business changes. If your company isn’t scalable, you’ll likely hit roadblocks down the line as you try to expand.

Efficiency

An effective SaaS company structure should be designed with efficiency in mind. This means having systems and processes in place that help team members work together seamlessly. By being efficient, you can avoid wasted time and resources, and get your SaaS product to market faster.

Customer focus

The most successful SaaS companies are those that are focused on their customers. This means having a deep understanding of their needs and pain points, and building solutions that address them. If you’re not customer-focused, it will be difficult to create a successful product that meets their demands.

Now that you know the elements of an effective SaaS company structure, let’s take a look at some tips on how to create one.

9 Key Tips for Creating An Effective SaaS Company Structure

Below are 9 tips that will help you create an effective SaaS company structure.

1. Define Your Company’s Core Values

The first step to creating an effective SaaS company structure is to define your company’s core values. These are the guiding principles that will inform every decision you make about how your company is organized and operated. Your core values should be reflective of your company’s culture and mission. They should also be actionable, meaning they should guide your team in their day-to-day work.

To help you define your company’s core values, ask yourself the following questions:

• What is our company’s mission?
• What do we stand for?
• What are our company’s guiding principles?
• What is our company culture like?

Once you have answers to these questions, you can start to formulate your company’s core values.

Some examples of core values that you may want to consider for your SaaS company include:

• Integrity
• Customer focus
• Innovation
• Excellence
• Collaboration
• Empowerment
• Diversity
• Communication

2. Define Your Company’s Goals

The next step is to determine what you are trying to achieve as a SaaS business. What does success look like for your company? Once you have a clear understanding of your goals, you can start to create a structure that will help you achieve them.

To determine your goals, ask yourself the following questions:

• What are our long-term goals?
• What are our short-term goals?
• What are our quarterly goals?
• What are our yearly goals?
• What are the metrics to use to measure success?

Some examples of goals that you may want to consider for your SaaS company include:

• Generate X amount of revenue
• Grow the customer base by X%
• Achieve X% year-over-year growth
• Enter new markets
• Release new products or features

3. Create an Organizational Chart

An organizational chart will help you map out the different roles and responsibilities within your SaaS company. It will also help you determine who reports to whom and what authority each person has.

To create an organizational chart, start by listing out all of the different roles that need to be filled within your company. Then, decide who will fill each role and how they will report to other team members. Finally, document your organizational chart so that it can be referenced as needed.

Some of the most important roles that you may want to include in your SaaS company’s organizational chart are:

• CEO/President
• CFO
• CTO
• VP of Sales
• VP Marketing
• Director of Marketing
• Director of Product Marketing
• Brand Marketing Manager
• Customer Success Manager
• Product Manager
• SaaS Marketing Leader
• Developers
• Designers
• Sales Manager
• Sales Representatives
• Accountants
• System Administrators

Check out our blog on 10 Tips on Building a Successful SaaS Sales Team Structure.

4. Choose the right leadership team

There’s no shortage of advice out there on how to choose the right leadership team. But let’s be honest: it’s not always easy to find the perfect group of people to help run your SaaS business. So what’s the secret? How can you assemble a team that will work well together and help your SaaS company succeed?

Here are a few tips:

• First, think about the skills and experience you need on your team. What kind of expertise will each member bring to the table? Make sure you have a good mix of skills and perspectives.
• Second, consider personality. It’s important that your team members get along and are able to work together harmoniously. Look for people with complementary personalities who will complement each other’s strengths and weaknesses.
• Third, look for commitment. You want team members who are dedicated to your company and its success. They should be willing to put in the hard work required to help your business grow.

To help you find the right people for your team, take some time to interview potential candidates. Ask them about their experience, their goals, and what they would bring to the table. Also, be sure to ask them about their availability and commitment level.

5. Determine your SaaS company’s structure

Decisions, decisions. When it comes to running a business in general, there are a lot of important choices to make. One of the first (and potentially most daunting) is deciding on the company’s structure. 

Should it be a sole proprietorship? A partnership? A corporation? The list goes on. Of course, there’s no one-size-fits-all answer – the right decision will depend on the specific needs of your business. However, there are a few things to keep in mind when making your choice.

First, consider the level of liability you’re comfortable with. Sole proprietorships and partnerships offer limited liability, while corporations offer full liability protection.

Second, think about the amount of paperwork you’re willing to deal with. Corporations are subject to more regulations than sole proprietorships and partnerships, so if you’re not keen on red tape, that’s something to keep in mind.

Finally, consider the tax implications of each option. Different structures have different tax implications, so it’s important to choose one that aligns with your financial goals. Sole proprietorships, for example, are taxed as personal income, while corporations are taxed as separate entities.

6. Set up processes and procedures

Having a clear and concise set of procedures in place helps to keep everyone on the same page and eliminates confusion and misunderstanding. To make things easier, here are a few tips:

• Define the goal of the process or procedure. What are you trying to achieve? Without a clear goal in mind, it will be difficult to create an effective procedure.
• Keep it simple. There’s no need to overcomplicate things – the simpler the better. For example, if you’re creating a procedure for customer service, make sure it’s easy to understand and follow. You don’t want your customers to get frustrated and give up halfway through.
• Make sure everyone understands the procedure. Once you’ve created the procedure, make sure to communicate it clearly to everyone who needs to follow it. A good way to do this is to create a step-by-step guide or flowchart that can be easily referenced.
• Test it out. Before you roll out the new procedure company-wide, it’s a good idea to test it out with a small group of people first. This will help you identify any potential problems and make any necessary adjustments before implementation.

7. Create a Communication Plan

Whether you’re communicating with your team members, your customers, or your vendors, it’s important to have a plan in place to ensure everyone is on the same page. Without clear and concise communication, things can quickly become confusing and difficult to manage. To avoid this, it’s important to create a communication plan. Here are a few things to keep in mind when creating your plan:

• Define your goals
• Choose the right method or channel of communication. There are a variety of methods you can use to communicate, such as email, phone, or in person. Choose the method that will best suit your needs and the needs of your audience. There are also tools, such as project management software, that can help to facilitate communication. Among the most popular communication tools are Slack, HipChat, and Google Hangouts.
• Create a schedule of when to meet or communicate with your employees. When it comes to communication, consistency is key. Having a schedule helps to ensure that everyone knows when and how to communicate.
• Be clear and concise. When communicating, it’s important to be clear and to the point. This will help ensure your message is received and understood.
• Follow up. Once you’ve communicated your message, make sure to follow up to ensure it was received and understood. This is especially important when communicating important information.

8. Implement a SaaS customer support system

In order to keep your customers happy and loyal, you need to have a system in place that can help them with any problems they may have. There are a few different options when it comes to customer support systems, but the most important thing is to choose one that will fit your specific needs.

If you’re a SaaS startup, you may not need all the features of a larger system. On the other hand, if you have a large SaaS business, you’ll want to make sure you choose a system that can handle a high volume of calls. Some of the most popular customer support system options include Zendesk, Freshdesk, and HelpScout.

If you wish to automate some of your customer support, you may want to consider using a chatbot. Chatbots are computer programs that can simulate human conversation. They’re a great way to handle simple customer support tasks, such as answering Frequently Asked Questions (FAQs). Some of the most popular chatbot platforms include Chatfuel, Botkit, and Motion.AI.

Once you’ve chosen a system, it’s important to set it up correctly and ensure that everyone who needs to use it knows how to do so which brings us to the next point.

9. Train your employees

A well-trained employee is a valuable asset to any business. Not only do they have the skills and knowledge necessary to do their job well, but they also tend to be more efficient and productive. Furthermore, well-trained employees are more likely to be able to adapt to change and handle difficult situations. Consequently, businesses that invest in training their employees tend to see a significant return on their investment. According to a recent study, businesses that offer comprehensive training programmes see a 218% return on their investment.

There are a number of ways to train your employees. One popular method is on-the-job training, where employees learn by doing. This can be an effective way to give employees hands-on experience and allow them to try out new skills in a safe and controlled environment.

Another option is formal classroom training, which can provide employees with the opportunity to learn in a structured setting. Whichever method you choose, it’s important to make sure that your employees are receiving quality training that will benefit both them and your business.

Final Thoughts

So, there you have it. Your very own SaaS business plan template. Feel free to customize and tweak as needed to fit your specific SaaS company. But no matter what, make sure you take the time to define your mission and vision, choose the right leaders, determine your SaaS company’s structure, set up processes and procedures, implement a customer support system, and train your employees. With these basics in place, you’re on your way to building a successful SaaS business that will stand the test of time.

If you need more growth marketing tips and best practices for your SaaS business, visit our blog.