Email, to a friend, the url of your favourite recent post, to expand the Shrewd'm community.
- Manlobbi
Investment Strategies / Software as a Service Gems
No. of Recommendations: 5
Software as a Service (SaaS) companies provide software based services to a large number of customers over the internet.
SaaS companies typically have exceptionally high gross margins, as they do not have the same cost structure as traditional software companies that must produce and distribute physical products.
Furthermore, as their service is delivered over the internet, they can be easily scaled to meet the demands of a growing customer base. This allows SaaS companies to expand exceptionally rapidly without incurring significant additional costs.
Some SaaS companies have high customer retention rates, though not all of them have this quality. It is important to identify the firms that can reliably retain customers willing to continue paying for its use, and to be conscious and realistic about your reasoning. Those that inherently retain customers, by the nature of the service, may enjoy a very powerful economic strength because of the other enormous advantages mentioned.
As an investor, what key competitive advantages do you look for when purchasing these SaaS companies?
I encourage you to take the time to leave shrewd posts to this board to share you excellent ideas and research findings with others. Within the gates of Shrewdom, you'll observe a merry spirit, and many waiting for your most shrewd observations so that we can collectively grow and prosper.
- Manlobbi
No. of Recommendations: 2
I am getting lots of questions about Saul's board.
Saul might not mind the platform he is on, but if he wants to return to this platform which I think catalyses a more focussed mind-set, he can (with their own post deleting moderation tool). I would then migrate the 'Software as a Service Gems' board there, so there is no redundancy.
But it is culturally useful (in aggregate) either way. The 'Software as a Service Gems' board would over time become helpful here, being more broad.
- Manlobbi
No. of Recommendations: 5
...if he wants to return to this platform which I think catalyses a more focussed mind-set, he can (with their own post deleting moderation tool).
Hey, it's your project, Manlobbi. But I think it would be unfortunate if Saul were to return here and continue to have to power to veto any and all posts that broach the topic of valuation.
No. of Recommendations: 6
Hey, it's your project, Manlobbi. But I think it would be unfortunate if Saul were to return here and continue to have to power to veto any and all posts that broach the topic of valuation.
Thank you, point noted. If Saul strongly wishes to return, the community here can have this board kept so that, in any case, you have a place with more freedom related to discussing SaaS firms.
One of the excellent qualities of this platform, on this very subject, is that there can be enormous contrasts between the cultures at different boards, though. Let me explain.
Other forums with a lot of notifications and interruptions cause the boards to effectively get blended together. This can create lowest-common-denomanator effect (where aggregate information is lost, instead of gained). This not only harms the focus, but completely destroys the cultural idiosyncrasies that each board has, which would otherwise be their strength.
You can have different boards here with extremely different cultures. In any case, we can keep this one - if the Shrewdom community wants it - as a Software as a Service business analysis board where you have more freedom to be critical and inventive.
- Manlobbi
