One of the most common ways practical founders get into SaaS is by creating a software product business out of a service business.
But it’s harder than it looks to try new and risky things when you already have a steady and successful business.
In big companies, this is known as the Innovator’s Dilemma. It’s why big companies struggle to do startup-y things well.
Many new SaaS entrepreneurs also struggle with those crazy startup experiments when they already have a successful business.
Investing your own money and resources to try things that may not work can create a mental struggle that is difficult to overcome.
It’s a fear thing. Fear of failure, fear of looking bad, fear that things won’t go as expected.
Landon Taylor created two successful digital marketing services businesses before starting a product-powered business with recurring revenues.
His first agency drove traffic to its customers, which led to his second business, Best Company, which produced qualified leads for large home services businesses through its bestcompany consumer review site.
Their work in consumer reviews led them to his latest business, Snoball, a word-of-mouth marketing platform they use to predictably and efficiently drive customer referrals.
With their systematic approach and some human-in-the-loop help, Snoball creates a scalable customer acquisition channel for large home services businesses in the US.
It wasn’t easy or quick to develop their Snoball business, but they never stopped experimenting, learning, and trying new things.
They never let the fear (or cost) of failed experiments stop them.
As Landon describes it:
“Fear can be debilitating for an entrepreneur. If you fear that when you take a leap you’re gonna fail, you’ll be paralyzed. You won’t be able to take the leap….to move forward, see opportunities, and take risks that will open up doors.
“You’ve gotta get to the mindset that failure is not fatal. Everybody who’s been successful has failed multiple times, right? So just take the leap. It can be a small leap. Or it could be a mental leap of believing that I can build, I can create, I’ve got something unique.
“It might be as simple as wanting to do a LinkedIn post, but you hit this wall of ‘I can’t.’ So get beyond that to believe I can, I’ve got something unique, I can build, I can create.“
Landon Taylor, founder of Snoball
Running enough crazy experiments is the superpower of practical founders who invest their own time and money to start their software businesses.
Landon’s story has many great lessons for entrepreneurs who are struggling to grow a new business from an old one.
Check out this interview with Landon Taylor on the Practical Founders Podcast.
