Every company consists of resources which contribute to functioning such a system. However, SaaS companies are very specific. That's why we wanted to find the answer to what the most valuable resource for the SaaS company is. Here's our take on this subject.
But first, what is a SaaS company?
An acronym SaaS stands for Software-as-a-Service. Simply put, SaaS organizations provide a software solution to some other company.
According to Derek Singleton from softwaredevice.com, SaaS is a method of software delivery in which the user has the opportunity to access it from multiple devices, that have an Internet connection and a web browser. SaaS vendors (Kolosek is one of them) take care of code, databases, and application.
SaaS companies have different business models than most of the companies. However, just like any other company in the world, SaaS companies consist of the following resources:
- Financial resources
- Human resources
- Tangible resources
- Intangible resources
It is important to remember that each of these resources is adding value to the company. Depending on the quality or quantity of them, the value can vary.
In order to answer which of these is the most valuable resource in the SaaS company, we will go through each of them.
Financial resources are measured by the company's ability to maintain the previously defined financial strategy. Depending on what the company does financial strategies are different. Furthermore, a huge impact on the financial strategy has how old the company is.
According to a post on cloudstrategies.biz, the biggest problem with SaaS companies is delayed revenue, that directly impacts profitability. Financial strategy of SaaS company goes something like this:
- determinating the working capital requirements,
- making sure there is enough cash until the subscription fee can cover the operating costs,
- constantly measuring sales, revenues, investments.
- potentially having a contract that describes prepaid subscription revenues.
In SaaS companies, human resources directly affect competitive advantage. Relations with the clients are the key to profitable business. However, we don't like to look humans as resources. Seems a little bit too harsh. Instead, employees are the source of new knowledge and devotion.
Human resources represent the people who, using their knowledge, experience, talent, and expertise, contribute to the company's mission. Not to mention, everything has to be documented.
Tangible resources are all things that surround the business space - infrastructure. Offices, IT systems, facilities, rent, electricity.
There is no company without tangible resources.
When someone mentions intangible resources, usually the first thing that comes to mind is intellectual property. However, this is not the only intangible resource. Knowledge, company's culture, mission, vision, and values are just as important.
What is the most important resource in SaaS company?
From our experience, equally paying attention to all the resources is going to bring a stable and profitable business that knows how to create competitive advantage.
If we had to choose just one, we would go for human resources, the people. People are the ones that use their knowledge to solve the most complex issues and are not afraid of the challenges.
Employees are the foundation of every company.
What do you think? Which is the most valuable resource for your SaaS company?
Thank you for taking the time to read this article. We know you are pretty busy and hope you found this article helpful. Remember, people are the ones that initiate and adapt to change. With their will and desire, they can create something extraordinary.
Until next time!