Unlocking Success for B2B Tech Companies: Mastering the Art of B2B SaaS Board Decks

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It's crucial to update your board members on the state of your business and outline your improvement strategy. They share your objectives and possess the knowledge and viewpoint to support you. They need the correct numbers to work with in order to accomplish that.

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85% of B2B SaaS/Tech companies rely on a board deck to communicate with their board of directors, according to a BoardEffect survey. The Harvard Business Review provides additional evidence that businesses that use a board deck have a higher probability of achieving their strategic goals. Furthermore, according to McKinsey & Company, using a board deck raises the possibility of reaching high board participation levels. Our goal at Effiqs, a marketing consultant, is to assist CMOs and other marketing experts at B2B tech firms in creating a compelling board deck.

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Establishing Openness and Realizing Goals

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Strong enterprise, notable growth, and notable bookings might seem like the highlights your board is looking for. But what they really want is a truthful and thorough portrayal of your business. This necessitates that the data and information you provide be honest, transparent, and forward-thinking. BoardEffect research shows that 85% of B2B SaaS/Tech companies use a board deck to communicate with their directors. A strong board deck can serve as a forum for thought-provoking conversations that draw on the knowledge and perspectives of your board members.

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Board meetings are a great chance, and for some members, the only way to understand the potential and success of your company. Businesses that use a board deck are likely to have high levels of board involvement, according to a McKinsey Company study. As such, it is imperative that you provide top-notch material that covers your company's achievements as well as its issues.

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Steer clear of ambiguity in your deck

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A concise board deck that highlights the most important topics is essential. A study by the early-stage B2B startup firm Notion Capital suggests keeping your presentation to a maximum of twelve slides. Here are some strategies to make your presentation more successful and clear:

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- Keep your agenda points specific; ambiguous points can provide unneeded diversions.

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- Reduce the amount of text and figures on your slides and make them simpler. Use graphics to illustrate your points instead.

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- Give board members a day's notice to examine your deck in order to improve their preparedness and participation in the meeting.

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Take On Your Obstacles To be honest

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As a board member of any company, Bill Gates demands that the CEO's report contain at least 50% unfavorable information. Even while it seems dramatic, it emphasizes how important it is to be completely open about the state of your company. Give a truthful description of your growth measures, even if they don't always look good. Think about what your present processes imply from the "bad news" when deciding what to discuss with your board:

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- Where have metrics decreased, and what changes could have caused that?

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- How do your numbers stack up against those of your rivals? Gain a thorough understanding of your profession and use these similarities to your advantage rather than as a means of self-deprecation.

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- What could be made better? Sometimes, however, your statistics won't show up as great. Identifying improvement techniques and collaborating with your board to identify solutions are crucial in these situations.

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Establish your Long-Term Goals

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The CEO of Wistia, Chris Savage, makes the argument that success doesn't always require starting a business. It may be more advantageous to focus on the long term instead. Developing tactics that will ensure your long-term success is crucial.

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- Determine and improve the main selling factors of your product. This will draw in new business and accelerate revenue growth from current clients.

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- Estimate market patterns for the future by using historical data. Consider the effects that these modifications will have on your customer acquisition expenses, market-product fit, and acquisition channels.

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- Decide on procedures for obtaining internal input and handling it. Having everyone on board with the objectives of your company increases the effectiveness of teamwork.

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Information on the board deck should mostly focus on the future. It's pleasant to celebrate short-term victories, but it's more sensible to concentrate on long-term progress.

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Present Information that Correctly Reflects Your Development

Selecting the most pertinent KPIs is essential to a successful board deck for B2B IT companies. To assist the board in monitoring advancement over time, make sure your presentation employs the same metrics each time. The most popular key performance indicators (KPIs) displayed in these presentations are as follows: Growth in Monthly Recurring Revenue (MRR), cash flow, payback period, churn rate, and LTV:CAC ratio. These KPIs give a true view of the state of your business.

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Growth in Monthly Recurring Revenue (MRR)

The trajectory of a SaaS company's monthly recurring revenue (MRR) is a crucial indicator of its success. The capacity of the subscription model to yield steady monthly revenue from a loyal customer base after an initial commitment is what makes it so appealing. Include this in your presentation to succinctly depict the company's momentum and provide an overview of your monthly activities.

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Analyze your net MRR by breaking it down into components like expansion from acquisitions, contraction from downgrades and churn, and growth from up-sells and cross-sells. To compare revenue increases and losses, include a graphic representation of your fast ratio to make sure these important details are not missed.

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Repayment Time

The payback period is the amount of time a SaaS provider needs to recover its initial client investment. It is beneficial to aim for a shorter payback period because it allows you to reinvested client income to increase profits or grow the business. This signal is essential to your presentation since it identifies a key limitation on the rate of expansion of your business. Venture capitalist David Skok of Matrix Partners advises SaaS companies to maintain their payback periods under a year in order to prevent growth from being impeded by exorbitant costs associated with acquiring new customers.

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Cash Flow

Having a solid cash flow is essential for any self-funded firm, so this is a crucial element. It's critical to keep an eye on your cash flow and make plans for any future financial gaps. Bigfoot Capital manager and co-founder Brian Parks cautions against depending too much on outside capital to stay in company. Even while a bootstrapped company might not need as long of a runway as a venture-backed company, it will still fail if it doesn't have enough money. Maintain a consistent cash flow by allocating resources fairly between growing the company, scaling, and acquiring new clients.

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Low turnover rates

Are a sign of happy customers, a well-designed product, strong marketing, and successful retention tactics. It is critical that the board keep an eye on this indicator since it shows how well your product resonates with consumers and how sustainable your company is. Use user and MRR churn in your presentation materials to demonstrate how customer attrition affects revenue. It is important to include both the gross and net MRR churn rates; a low net MRR churn rate indicates that client retention and growth tactics are working.

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LTV:CAC

Any SaaS business must conduct a thorough analysis of the lifetime value to customer acquisition cost (LTV:CAC) ratio, which is the foundation of your unit economics. A high lifetime value to cost of acquisition (LTV:CAC) ratio indicates long-term financial success because it indicates that a customer's value is far more than the acquisition cost. An LTV:CAC ratio greater than 3:1 is ideal for operations that are sustainable.

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Provide the LTV:CAC ratios and further segment your customer base based on buyer personas and acquisition channels in your board deck. This will offer precise direction on where to focus marketing efforts to get the best return on investment.

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A strong basis is created by measuring and sharing these KPIs regularly at board meetings. These core indicators can be strengthened by extra slides that summarize important issues for discussion, hiring specifics, a product roadmap, and highlights of accomplishments and setbacks. But these KPIs are the foundation of a strong board deck, guaranteeing that your sessions will yield the most benefit.

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Businesses That Have Corrected It

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Software firm Atlassian: Atlassian creates tools for software teams. Atlassian's board of directors is informed about its strategic aims and objectives through the usage of a board deck. The company's financial results, product roadmap, and growth strategy are all detailed in the board deck. With the use of the board deck, Atlassian has been able to raise board engagement, facilitate better decision-making, and improve communication with its board of directors.

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Dropbox is a file-sharing platform. Dropbox's board of directors is informed of its strategic aims and objectives using a board deck. The company's revenue, market share, and user growth are all detailed in the board deck. With the use of the board deck, Dropbox has been able to raise board engagement, facilitate better communication with the board, and improve decision-making.

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Grammarly: Grammarly is a grammar checker available online. Grammarly's board of directors is informed about its strategic aims and objectives through the usage of a board deck. The company's revenue, market share, and user growth are all detailed in the board deck. Grammarly has been able to boost board involvement, improve communication with the board, and make better decisions thanks to the board deck.

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These are just a few instances of B2B SaaS/Tech businesses that have used board decks and how it has helped their business expand. You may use a board deck to improve decision-making, raise board engagement, and facilitate better communication with your board of directors by using these ideas.

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Conclusion

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Keep in mind that your board members are an essential component of your team. Board members are in a good position to provide unbiased input at board meetings because they are removed from day-to-day activities. The best method to support your board in its responsibilities and set up your company for long-term success is to build an open, forward-looking deck. You may persuade your board and yourself of Effiqs' unique advancement and development by meeting these important KPIs.

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We implore you to act right now in light of these vital revelations. Start now by reviewing and improving your metrics, and you'll notice a discernible improvement in your board meetings. We at Effiqs are prepared to help you on this significant journey. Today, let's have a discussion about how we can best meet your unique needs. Get in touch with us right now to start down the path to improved business performance. Schedule a free strategy call with our ABM agency CEO, Alex Hollander. Or visit our homepage for more information regarding B2B SaaS & Tech Growth Operations!

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