An insider’s guide to managing software business success
In today’s podcast episode, host Cristian Dina welcomes guest Eric Mersch from FLG Partners, a consulting firm serving over 40 SaaS companies. The compelling discussion delves into the specifics of his role, the common pitfalls encountered by SaaS businesses, and his in-depth perspective on leading strategies for success in the tech sphere.
Eric Mersch proudly announces his book, “Hacking SaaS,” an insightful resource providing a common language and reference point for those in the SaaS industry. The book caters to anyone invested in SaaS, from seasoned and junior professionals to those in sales, customer success, investors, and more. He felt compelled to write the book due to the prevalent lack of understanding of the industry’s SaaS metrics and business models, leading to consequential misunderstandings and potential obstacles.
However, “Hacking SaaS” does more than just delineate metrics; it educates readers on why these metrics are essential, empowering them with a solid grasp of their application and relevance. Eric mentions one particularly problematic case of a CFO who joined a company without comprehending its financial status. An incident like this emphasizes the importance of understanding and communicating in the language of SaaS.
An interesting fact about FLG Partners is their unique model, where they step in as interim CFOs in venture-backed and private equity-backed companies. Their focus is to stabilize the situation, adequately prepare the firm for the forthcoming CFO, and ensure seamless transitions, typically in businesses with around 500 employees.
Eric noted that companies’ most common mistake is their lack of consistency in financial language. Over the five years he’s been with the company, our guest emphasized the importance of a shared language – often the missing link to financial understanding and management in these firms.
Regarding his advice for young professionals, the speaker encourages them to find a passion and align with a company that enables them to grow and broaden their understanding – even suggesting a stint of a year for a complete learning experience.
One of the most significant challenges he highlights is finding companies with sound leadership and healthy business cultures. As e points out, the struggle is not just about understanding SaaS metrics but integrating them with the company’s values and work ethics since they are equally crucial to a company’s overall development and success.
In conclusion, Eric’s experience in SaaS and solid finance background make the episode a rich source of insights and sound advice for professionals at any level in SaaS businesses. From his work with FLG Partners to his comprehensive book and invaluable advice based on past experiences, “An Insider’s Guide to Managing Software Business Success” provides an insider’s guide, empowering listeners to navigate the SaaS industry to success.
