Everything Just Changed

I have been through a few of theses crisis, and would offer the following observations from a financing perspective to the smaller SaaS businesses out there.

1. Remember, you have a great business model to survive large disruptions. Most companies need to sell new stuff every day to survive. You don't need to do that, so plan to fund yourself on your current ARR.
2. Your balance sheet just became really important. Recognize that. Do some common-sense, conservative, reforecasting and cash planning. New capital might not simply get expensive, it might not even be possible to get. Keep your existing investors well informed.
3. In prior crisis, successful SaaS business shifted spending from sales and marketing (no one is buying anyway), to product and customer success. When the crisis was over, they had great products to sell and very happy customers.

These are observations, not advice. This situation is impacting our companies unevenly, and it's really too early to tell what will happen. That said, reacting too slowly vs. over-reacting is a careful balance. Reacting too slowly can jeopardize viability in some companies, while overreacting typically jeopardizes upside.