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Months into the global pandemic and economic crisis, it is readily apparent that flexibility and adaptability are key to business survival. Robert Shaw, Director of Growth and Transition Capital at BDC Capital, says the advantages of the SaaS operating model are evident as SaaS companies pivot to meet changing customer needs, seamlessly transition to a virtual work environment, and adjust business operations to remain viable.
Throughout the economic downturn, BDC has worked closely with SaaS companies to provide advisory services and lending solutions. And while the timing for an economic recovery – in Canada and around the globe – is still uncertain, SaaS companies are striving to push ahead.
Sub: Identifying priorities and finding focus
Fusebill is an Ottawa-based subscription billing company that helps hundreds of tech businesses bill and manage over $1 Billion in annual transactions. Fusebill simplifies subscription and recurring billing management by automating manual accounting and financial processes and workflows. Fusebill’s cloud-based recurring billing solution allows companies to eliminate billing bottlenecks, the flexibility to capitalize on new product opportunities, and the agility to maintain a competitive edge.
Fusebill CEO Tyler Eyamie says when the pandemic shutdown first occurred in March 2020, the company had three priorities:
“We worked very closely with our customers to support their business, even though it meant temporarily pausing our own growth plan. Fusebill became a trusted resource for customers who not only needed to get their invoices out and get paid, but who were also thinking of how they could help their own client base by pausing payments or reducing fees,” says Tyler. Several Fusebill customers have millions of clients and guiding them through the process of discounting customers at scale was a significant undertaking.
Tyler looked at the shift as an investment in the future. By supporting Fusebill’s customers in their own growth paths, it strengthened the client relationships, which will ultimately benefit all parties.
“From what I’ve seen, SaaS and tech companies in general have been impacted far less than traditional companies as a result of the pandemic,” says Robert. “Their business model allowed them to go remote from Day 1 with a marginal impact on their business operations. In the first few months, the companies I work with – like Fusebill – were focused on their employees’ well-being and maintaining their customer base and recurring revenue. Tyler and his executive team did an excellent job of moving from growth mode to customer success mode.”
Sub: Planning for growth
With much of the world now somewhat adapted to the “new normal,” SaaS companies are starting to shift their attention back to growth strategies. Product development is a priority and resources are being reallocated from sales and marketing activities to initiatives that will advance the product roadmap.
Digital transformation is a necessity as companies seek to automate their business processes through SaaS-driven platforms.
“We are extremely bullish on what we have to offer,” says Tyler. “Large, medium, and small organizations attain digital transformation of their recurring revenue engine and gain transactional stability through Fusebill’s solutions. We are seeing signs of the market starting to come back and the opportunities are massive.”
Robert agrees that the SaaS business model provides tremendous upside. The health of a business can be measured in real time month over month (MRR) growth, customer acquisition costs and customer churn rate, which provides valuable data that can inform business decisions to optimize capital for growth. Strong financial backing allows SaaS companies to more confidently, albeit somewhat cautiously, plan for the future.
Adds Robert, “Innovation is critical to growth. SaaS companies that iterate and innovate, while remaining focused on providing the products and solutions their customers need, will see opportunity for future growth.”
Sidebar – About BDC
BDC is the bank for Canadian entrepreneurs. It provides access to financing, as well as advisory services to help Canadian businesses grow and succeed. Its investment arm, BDC Capital, offers a wide range of risk capital solutions. For more than 75 years, BDC’s only purpose has been to support entrepreneurs in all industries and at all stages of growth.
BDC is actively supporting more than 3,500 Canadian tech entrepreneurs, with close to $3B in loans and investments. We know it takes smart money and a wide range of solutions to help companies scale up and stay in control of their business.
Thank you to BDC for being a SAAS NORTH NOW Gold Sponsor