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5 Ways to Detect a Fake SaaS Business

By: Ned Stringham

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As the software industry evolves, there are constantly new terms and phrases created to describe and categorize each new model. And, when one of those emerging models has success and the financial valuations for being connected to that model skyrocket, impostors appear and quickly contort their firms to be part of that hot, emerging category. That’s why today, if you ask almost any software company to classify themselves, whether they’ve been in business for 2 years or 10 years, you’ll hear all the hottest valuation terms: mobile, social, cloud, big data, SaaS, PaaS. This isn’t new. Who can blame us, we want higher valuations. More

Mobile Invades the Enterprise

By: Ned Stringham

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The revolution in mobile computing for consumers is well under way and moving faster than any technology wave before. Following right behind it is the enterprise adoption of mobile applications. IDC expects spending globally to reach $11.5 billion by 2014. This wave is likely to up-end industries, create new winners and losers and extend the process of creative destruction throughout the enterprise world as it has in the consumer world. More

One Reason SaaS Businesses Fail

By: Ned Stringham

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The Software-as-a-Service (SaaS) business model, when working right, is a financial analyst’s dream.
Revenue is recurring, customer attrition is low, gross margins usually exceed 70% and the business can scale quickly without adding people. The result is amazing cash generation and valuations exceeding 5, 7 and even 10x revenue. It’s clear why every venture capitalist, private equity firm, angel investor and management team in the software space is in love with software-as-a-service. More

Best State for Business…Utah?

By: Admin

If you polled 100 residents of Utah as to why they live in this state, less than 5 would say because it’s the best place in the country to start a business or build a career. San Francisco, New York, Chicago and maybe Dallas or LA are the more likely answers for that. Despite this dated perception,located in Salt Lake City has surpassed MIT as the most prolific creator of new businesses to become the top University in the country in this category. Even more recently, Forbes rated Utah as the number one state in the country for business after examining factors like business costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life.
Then, just in the last few weeks the State of Utah revealed that it anticipates a $400 million budget surplus, yes surplus. Despite the sometimes crazy things that come out of the Utah legislature, they must be congratulated on keeping Utah’s fiscal house in order. California has some lessons to learn from Utah. More

Is “Serial Entreprenuer” Just Code for Serial Failure?

By: Ned Stringham

Have you noticed that just about everyone you speak with these days is a ‘serial entrepreneur?’ It’s the vogue thing to be. Like consultants in the late 80’s and venture capitalists in the late 90’s, everyone is trying to spin their story, but as before, the substance is often lacking. More

Turning an Offer on It’s Head

By: Ned Stringham

A very clever deal guy taught me a simple mental trick when evaluating an offer to sell part or all of your company. He told me, “if you say no to this offer to sell, it’s the same as you buying the business for that price.” The price you turn down is the price you effectively ‘paid.’ It is now your new baseline. You now have to create value above and beyond that baseline. Can you still grow the value of your business at a rate and to a size above that level which justifies saying no to the offer? More