The SaaS founders I know with the highest growth rates in 2023 are also the most clear about what they want to accomplish in 2024.
I have been working with dozens of SaaS founders, including 35 founders in my Practical Founders Peer Groups, on their theories about what they need to do better and differently in 2024.
We started with this question:
What’s the Most Important Number that will drive overall success next year in your business?
It’s not their total revenue or profit goal. It doesn’t encompass their whole planning process. It’s not an accountability metric or a 5-year vision.
It’s a thought exercise to determine the biggest new thing they need to accomplish that has the most leverage to drive their bigger goals and vision.
Here’s what I learned so far from these founders:
- Some element of their growth machines was the most popular focus for these CEOs.Product, operations, hiring, and finances are all important, but they are less important than getting more customers more efficiently.Goals like “350 demos completed with our core customer profile,” “750 new customers,” or “25 conversations with potential enterprise accounts.” Two founders chose customer retention goals to fix next.
- The specific quantity goals always have a quality level.350 demos “any way you get them” is not useful. “350 demos through marketing-led channels that meet our qualification criteria” is useful.
- Picking a single most important goal makes a big difference.Everyone has lots of goals, especially bigger companies with bigger teams. But the one goal the CEO thinks is most important increases the odds that it will move and get done. It’s the new, hard goal that will take extra focus.
The SaaS founders with the highest growth rates in 2023 were the most clear about what they wanted to accomplish in 2024. I don’t think this is a coincidence.
The fast growers had the most thoughtful planning processes. They prioritized the biggest goals, aligned everyone on their teams, and worked on them every week.
Those who aren’t sure what the most important goal is or struggle to decide on the big one, who don’t tell their teams and who don’t obsess about them, didn’t have great results this year.
Perfection wasn’t required. Clarity, alignment, and focus created the progress.
Pick a reasonable number. Get started. Change it as you go. Refine it. Track it manually in a spreadsheet. Don’t forget about it.
I picked my Most Important Number this week for 2024. It is already changing what I think about, how I spend my time, and what I do everyday.
What’s your Most Important Number for 2024?
I’d love to know.
#practicalfounders
