The SaaS P&L Explained – Where Metrics and Margins are Born

SaaS P&L Explained

The SaaS P&L Explained – Where Metrics and Margins are Born You can’t manage a SaaS business by only using the standard financial statements.  To really understand the underlying economics of your business, you must have a properly structured “software” P&L (Profit and Loss Statement), and you must calculate the relevant SaaS metrics and margins […]

What the SaaS Magic Number of One is Not Telling You

SaaS Magic Number

Why the SaaS Magic Number of One is So Lonely The SaaS Magic Number is a sales-related SaaS metric that determines your efficiency in generating incremental recurring revenue.  In the SaaS community, a SaaS Magic Number of 1 or greater is considered ideal, but should you really pour more money into sales and marketing if […]

SaaS Financial Model – Your Financial Blueprint

Step-by-Step Guide to your First SaaS Forecast

SaaS Financial Model Finally, I pushed the button and released my first SaaS Financial Model in Excel. Over the past few months I have released various Excel models covering forecasting, SaaS metrics, and personnel expenses. I combined some of these models into one and developed version one of my SaaS Financial Plan. The Excel Model […]