mouse trap

The unprofitable SaaS business model trap

Marketo filed for IPO with impressive 80 percent year-over-year growth in 2012, with almost $60m in revenue.
Except, they lost $35m. WTF?

3 drivers of growth for your business model. Choose one.

Every startup needs to “pick a major” among three drivers of growth. It’s simply too hard to focus on more than one. This choice has to be made at the level of strategy, because the tactics between involved in each driver are quite similar. Startups may pivot from one driver to another as they experiment. But failure to identify a clear driver of growth leads many entrepreneurs into dangerous territory.