RV169 - The Changing Financial Dynamics of B2B SaaS and Tech Companies | Go To Market Live Episode 13
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Description
In this week’s event, Chris tackles the evolving financial dynamics within B2B SaaS and tech companies. He delves into the substantial shift in valuation metrics applied to these organizations and explores the consequent pressure this places on their go-to-market expenditures, particularly in sales and marketing. With a strong emphasis on becoming a business-savvy executive rather than remaining confined to departmental roles, Chris lays out a blueprint for rethinking investment strategies. Following a detailed exploration of financial metrics and how they've historically influenced investment behaviors, Chris steps through his thoughts on how companies need to reallocate their budgets with a greater understanding of net new ARR versus total revenue. This episode sheds light on the urgent need to redefine the way financial decisions are made from a C-level perspective, steering away from traditional sales and marketing investments towards a more fiscally responsible approach. The Impact of Valuation Multiples:  Chris examines how the compression of valuation multiples triggers reevaluation of sales and marketing investments in SaaS businesses. Investing Wisely: An emphasis on investing based on net new ARR for a reasonable CAC payback period, rather than a percentage of total revenue. Optimizing Go-to-Market Expenditures: The necessity of cutting out inefficient spending on sales and marketing to improve overall financial health. Be a Business Leader First: Chris’s call to marketers and sales leaders to prioritize business acumen over functional roles in driving their departments' success. Future Predictions: Insight into upcoming shifts, such as the increasing significance of founder and personal brands, and the challenges in content trust. If you want to have a conversation with Chris and present your current questions, roadblocks, or projects you’re working through, make sure to attend this weekly event every Tuesday at 12 central. Register here. Can’t make the event but have a question for Chris? Submit it here. The next Expert Session, featuring Crissy and Charlie Saunders of CS2 Marketing, will be Wednesday April 24 at 12pm central. Register here.  Thanks to our friends at Hatch for producing this episode. Get unlimited podcast editing at www.hatch.fm
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