Simon Sinek is one of the most followed people on the planet when it comes to leadership.Prepare to be inspired as Eric Partaker presents his curation in his newsletter, unveiling Sinek's transformative insights for aspiring leaders worldwide.

14 of the Wisest Things Ever Said About Leadership 

People don’t buy what you do; they buy why you do it.

A boss has the title. A leader has the people.

When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.

You don’t hire for skills; you hire for attitude. You can always teach skills.

You can easily judge the character of a man by how he treats those who can do nothing for him.

Bad leaders care about who’s right. Good leaders care about what’s right.

We achieve more when we chase the dream instead of the competition.

Leadership is not about being in charge. Leadership is about looking after those in our charge.

Stars want to see themselves rise to the top. Leaders want to see those around them rise to the top.

Customers will never love a company until the employees love it first.

Leadership is not a license to do less; it is a responsibility to do more.

It is not the genius at the top giving directions that makes people great. It is great people that make the person at the top look like a genius.

Stress and anxiety at work have less to do with the work we do and more to do with weak management and leadership.

Be the leader you wish you had.

14 of the wisest things ever said by Simon Sinek:

 1. “People don’t buy what you do; they buy why you do it.”
    
 2. “A boss has the title. A leader has the… | 347 comments on LinkedIn

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14 of the wisest things ever said by Simon Sinek

Content Curation is the process of gathering, organizing, and presenting information relevant to a particular topic or area of interest. This involves sifting through vast amounts of content on the web and presenting the best, most relevant content in a structured manner.

Content Curation

Content Curator, is the one manages the process of finding, grouping, organizing, or sharing the best and most relevant content on a specific topic.She identifies key themes, latest trends, and the most insightful resources, and then presents these in an easily digestible format for her audience.The goal of a curator is not to generate new content (although Deepstash allows to create from scratch as I'm doing right now), but to extract the best content available from various sources. She adds value by saving her audience or herself time and effort in finding and understanding the information.

The Curator

Based on my experience, I've observed two types of curators, each differentiated by their motivations, goals, and the unique expectations they have from the medium where they share their curated content.

Two Types of Curators

Authority-driven Curators: These curators are primarily motivated by extrinsic factors such as gaining authority, growing a community, and increasing their number of followers or likes. Their goal is to appear authoritative, which in turn attracts more followers or prospects. They curate and share content that will boost their numbers and enhance their perceived authority.

Two Types of Curators (#1)

Intrinsic Curators: These curators are driven by intrinsic motivation. They curate content because it is useful to them personally. In the era of information overload, their goal is to learn deeply about useful resources, digest them to uncover valuable insights, and organize them in a way that makes it easy to find important information when needed.A secondary effect of their curation is that when they share their collections, they can also help others. This type of curator is more focused on the value and utility of the information rather than the potential for gaining followers or likes.

Two Types of Curators (#2)

From the product perspective, I pondered on some key features that a curator-focused platform should possess for optimal growth.But first, I'd like to introduce the terms "closed" and "open" platforms. Then we can delve into what do curators expect from a product.

What Do Curators Want From the Product They Want to Use?

In a "closed platform" the connection of the content creator with the audience is controlled by the platform itself. For example on YouTube, there's no way to migrate your subscribers to another video sharing site. It doesn't matter how many subscribers you have, most viewers primarily see recommended videos, an aspect you have limited control over.In an "open platform" content creator has a direct connection with the audience. You can take your email list, RSS feed, and customer list anywhere you move. Substack (email), WordPress (RSS), Patreon (membership) are good examples.

Closed vs. Open Platforms

Authority-driven Curators prefer open platforms because they allow for a more direct and controlled communication with their audience. They are also in search of tools that can amplify their perceived authority and facilitate the growth of their audience.

What Authority-driven Curators Want?

<ol><li>Tools for driving engagement and increasing followers or likes: This includes highlighting features like social sharing buttons, comment or reaction systems, and analytics to understand their audience behavior and preferences.</li><li>Possibility for direct communication and branding: Authority-driven curators would appreciate customization options to reflect their authoritative persona, and direct message or email features to manage communication with followers.</li><li>Openness and portability: They require the ability to transfer their followers list and data when switching platforms.</li></ol>

Crucial Product Features for Authority-driven Curators

Intrinsic Curators are seeking more flexible platforms which allow them to organize their content in the best way possible to express their unique insights and where gaining popularity is less central. Integrations that brings ease of use is one of the most critical features they're looking for.

What Intrinsic Curators Want?

<ol><li>Features aiding content organization and discovery: This would consist of categorization, tagging and search functions, saving for later, and suggestions based on interests or activity.</li><li>Flexibility: As intrinsic curators focus less on followers and more on the value of the content, they'd prefer platforms that allow them to manage their curated content without interference or limitation.</li><li>Interoperability: This curators would value the ability to easily exchange and synchronize their content between different products or platforms so they can manage and share their content wherever they prefer.</li></ol>

Crucial Product Features for Intrinsic Curators

While answering Deepstash's customer survey today, I found myself deep in thought about the topics if I would be building a curator-led product. :)

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In simple terms, APIs serve as a bridge that connects different software applications. Via the bridge, connected software can seamlessly integrate to send data back and forth.

What Is an Application Programming Interface (API)?

API-based SaaS is a cloud-based software application that allows users to access its features, data, and functions via an API instead of a user interface.

What Is API-Based SaaS?

<ul><li>API-based SaaS improves the user experience by making it easier for users to import and export data and customize their workflow by integrating specific apps.</li><li>It simplifies development: Instead of building features from scratch, developers can simply integrate your software with other apps that already have the desired features.</li></ul>

Benefits

<ul><li>Increases accessibility: Users can access API-based SaaS software via an internet-connected web browser or mobile app.</li><li>It is flexible and scalable: Allows you to quickly and easily update the software to improve its performance in the background without disrupting user activities or existing integrations.</li></ul>

Benefits (cont.)

<ul><li>While APIs may be familiar to developers, they may not be intuitive or user-friendly for all users. Some users may prefer a graphical user interface (GUI) or find APIs difficult to use without additional training or support.</li><li>It can introduce security risks if not properly secured.</li></ul>

Challenges

If you're an aspiring SaaS founder, you may consider to build an API-based SaaS business.

Are you an aspiring SaaS founder? If so, you may be overwhelmed with your options, including API-based SaaS. In this guide, we'll help you make sense of

API-Based SaaS: Definition, Benefits & Challenges - Baremetrics

Any potential lender or investor will want to see a reliable revenue projection to gauge how likely you are to pay their money back (ideally at a large multiple).

SaaS Revenue Forecasting

To build a good forecast, you first need to define where the company is going and how you plan to get there. Forecasting helps you and the rest of the team constantly answer the question: is what we're doing taking us where we want to go?

The Why?

Before implementing automated tools, it's generally helpful to begin revenue forecasting with a simple, accurate spreadsheet model. Just <a href="https://docs.google.com/spreadsheets/d/1nj0LtyG6Q9HhXk-iaj9-3taT9gwWpF8XnxYahpn--to/edit">make a copy of this template</a> and follow along.

Building a Revenue Forecast in Google Sheets

The most straightforward forecasting tools rely on the recent past to predict the future. The "straight-line" method uses historical revenue and growth trends to map high-level revenue expectations. Start with your last six months of data and map out the next six months based on your current trajectory. For example, if you had $50k in monthly recurring revenue six months ago and today you have $60k, a straight-line forecast would show that in 6 months, you'll hit $70k in MRR.

Basic Forecasting Options

<ol><li>Your funnel model</li><li>From funnel to "new customer"</li><li>Revenue forecasting models</li><li>Converting customers to MRR</li></ol>

Creating a Revenue Model

Start by mapping out your marketing funnel data and customer signup information. Understanding each funnel step and conversion rate helps you see the complete process behind your revenue generation.

1. Your funnel model

After mapping out your historical funnel data, analyze the formulas and how your conversion factors have moved over the past few months. Then, make your best guess what ratios are reasonable going forward.

2. From funnel to "new customer"

Get the number of new customers your marketing funnel will generate each month. Revenue from these customers flows into your new MRR, where we’ll pick up the second part of your revenue forecast.Aside from attracting new customers, there are a few significant factors impacting MRR:<ul><li>Expansion and contraction (subscription upgrades or downgrades)</li><li>Churn and reactivation: Customers canceling subscriptions or reactivating a previously canceled subscription.</li></ul>

3. Revenue forecasting models

We’ve effectively established the total number of customers we expect each month from the marketing funnel to our expectations for expansion, churn, and contraction. Using these figures and the average revenue per customer (ARPC) for each category, we can make a solid prognosis for MRR.

4. Converting customers to MRR

Once you’ve established your revenue forecasting formulas and the data relationships necessary to build your forecast, it’s simply a matter of refreshing the data and assumptions each month. You’ll be able to copy your traffic and conversions data directly from your marketing funnel software. Then input your revenue and churn information. If your assumptions were way off, go ahead and reassess for the next forecast.

Maintaining Your Revenue Forecast

Revenue forecasting is essential, especially for SaaS businesses. Don’t wait until you’ve got an entire finance team ready or investors to satisfy to implement the most advanced cloud forecasting solutions. Getting started with a Google Sheets tool is massively better than not forecasting at all.

The Bottom Line

Many founders treat revenue forecasting as a luxury, until suddenly, revenue forecasting becomes a necessity. This guide to SaaS revenue forecasting will walk you through building a revenue forecast.

Many companies stick with pretty basic financial systems when first getting off the ground.  Once there's revenue coming in, the founder and their How to build a SaaS revenue forecast using google sheets, and why you might benefit from using an automated software solution like Flightpath by Baremetrics.

A Founder’s Guide to SaaS Revenue Forecasting

Whether you created your SaaS product to help solve a problem you had or because you wanted some extra income, the truth is that your SaaS business is a valuable asset.Whether you’re an early-stage founder or you’ve built up an established B2B SaaS business, it's crucial to understand how valuations work and how you can prepare for an exit when the time is right for you.

It’s a Valuable Asset

There are three ways to look at SaaS valuations:<ol><li>Seller discretionary earnings (SDE)</li><li>Earnings before interest, taxes, depreciation, and amortization (EBITDA)</li><li>Monthly recurring revenue (MRR)</li></ol>No matter which formula you use, they boil down to how much money your SaaS business generates and set that number against a multiple that reflects the quality of your business.For SDE and EBITDA, you would set annual profit against an annual multiple; typically, this multiple ranges from 2-10X.MRR is set against a monthly multiple that usually ranges from 25X to 100X.

Valuing SaaS Companies Based on SDE, EBITDA, and MRR

SDE reflects how much money your business makes after all expenses are paid and any salaries are added back into the business. The figure is one way to indicate a business’s earning potential and is often confused with EBITDA. Businesses valued with SDE tend to earn less than $2 million in annual recurring revenue (ARR) and tend to be run by solopreneurs. Year-on-year revenue growth is usually less than 50%.

SDE for Businesses Valued at Less Than $5 Million

Businesses that make over $5 million in ARR will likely use EBITDA, as the business will have a high growth velocity and a more fleshed-out infrastructure. The owners tend to be thought leaders in their industry and operations are developed with department heads and teams working under them. There are usually more stakeholders than the owner. EBITDA takes many factors into consideration, which is why this metric is more suitable for mature and complex businesses.

EBITDA for Businesses Valued Above $5 Million

MRR is a popular way to value SaaS businesses because it’s a key indicator of revenue growth.Investors prefer looking at MRR rather than ARR because annual recurring revenue doesn’t provide proof of churn.Big SaaS brands generating high MRR can raise a lot of money during seed funding rounds, despite not generating profit. For less mature brands that haven’t built up a name, people prefer monthly plans; with a recognizable brand, they can charge a discounted annual plan.A newer startup could be valued using MRR if it’s experiencing rapid growth and ARR is more than $2 million.

MRR for Fast-Growing SaaS Companies

No matter which valuation formula is used, investors look for proof of these three characteristics in a business: <ol><li>Transferability </li><li>Sustainability </li><li>Scalability </li> </ol>

The Three Key Elements of Attractive Assets

Investors look for businesses that can be easily transferred. To prepare your business for a sale, focus on making the transition as seamless as possible. Payment processing can cause huge headaches for buyers if the account can’t be transferred. Payment processing aside, you’ll need to document your business operations as much as possible to make your business plug and play. Creating well-documented code that can be understood by another developer ensures continuity if the new owner wants to develop the product or fix any issues. Standard operating procedures (SOPs) help buyers to learn how to run the business as you did; SOPs are great for training new staff or to refer back to during the transitional period when the business changes hands. While buyers are doing their due diligence, they’ll need to see clean financials. This will include tax returns from the past three years, a balance sheet, income statements, and cash flow.

1. Transferability

Scaling your revenue (MRR) is great, but it needs to be done efficiently.A business with high MRR won’t be worth as much if the churn rate is through the roof and your retention rate is poor. Buyers pay attention to your LTV, churn rate, and conversion rate optimization.Investors will also look at how efficient your operations are at acquiring new leads. Organic lead generation is highly attractive because there are no expenses involved; if you have other customer acquisition channels (CACs), the conversion rates will indicate whether these marketing channels are worth maintaining.

2. Sustainability

The most exciting prospect of SaaS businesses is their room for growth.Buyers will be looking at how scalable your business is based on a number of factors, such as the LTV/CAC ratio.A low LTV/CAC ratio may indicate that more capital is needed than expected to scale a business; on the other hand, a high ratio could mean your growth is slower than your competitors because you aren’t spending enough on marketing.

3. Scalability

<ul><li>Competition  - is there enough differentiation from existing software companies? </li><li>Product lifecycle - does your product need any major updates to stay relevant? </li><li>Technical knowledge - does the new owner require deep technical programming knowledge to be able to run the business, or can that knowledge be easily transferred? </li><li>CAC per channel - how effective is your marketing strategy at generating new customers in a cost-effective way? </li><li>Diversification - how many single points of failure are there in your business? </li><li>Saturation - is there room for growth in the current market? </li> </ul>

Other Factors That Affect the Sales Multiple

If you're thinking an exit strategy from your SaaS startup, you have to be prepared for it.

Whether you created your SaaS product to help solve a problem you had or because you wanted some extra income, the truth is that your SaaS business is a Here is an article on what investors look for in SaaS businesses and the factors that affect multiple sales.

Here's What Buyers Look for in SaaS Businesses

Passionate love lasts for two or three years at most. After that, the relationship continues on the basis of friendship, life sharing and trust. A new partner is the only way to feel that high feelings again created by the passionate love. That's the main reason for cheating; consciously seeking this emotion or experiencing it by chance.However, any newly started relationship will inevitably come to the same low standard level after a while. This is true for all relationships. Therefore, it does not make sense to make "the lack of this feeling" the reason for a break up.

How long does passionate love last?

It's better to stop and think deeply the facts about love and passion before you cheat on or break up with your partner.

14 of the wisest things ever said by Simon Sinek

Curator-Led Product

API-Based SaaS: Definition, Benefits & Challenges - Baremetrics

A Founder’s Guide to SaaS Revenue Forecasting

Here's What Buyers Look for in SaaS Businesses

Kerem C