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From Impossible to Inevitable

From Impossible to Inevitable

Aaron Ross, Jason Lemkin
2016
T3 336 pages · about 5h 36m to read OL21188636Wgoodreads

The SaaS growth playbook: niche, funnel, hiring cadence.

Summary

Ross, who built the outbound sales model at Salesforce and wrote Predictable Revenue, and Lemkin, who founded EchoSign and writes on software sales, set out seven components they argue are required for a business-to-business software company to grow at high rates repeatably.

The seven are: nail a niche, meaning dominate a defined segment before broadening, which they treat as the most common failure; create predictable pipeline, using the specialised sales roles Ross developed at Salesforce in which prospecting, closing and account management are separate jobs; make sales scalable through repeatable process and documented playbooks; double customer lifetime value through retention, expansion and pricing rather than through new acquisition; embrace employee ownership, meaning give people accountability for outcomes rather than tasks; define your destiny, meaning set the goal and work backward; and do the time, meaning accept that the growth takes years longer than founders expect.

The most substantive content is on sales specialisation and on niche selection. Ross's argument that a single salesperson doing prospecting and closing will always default to closing, which starves the pipeline, is the operational insight behind the sales development representative role that became standard practice.

The book is practitioner advice with no evidence base beyond the authors' experience and their clients. It is specific to business-to-business software with a defined sales motion and does not apply to product-led or consumer businesses. The prescriptions are stated as rules without the conditions under which they hold.

Key takeaways 7

  1. Failing to dominate a defined niche before broadening is the most common cause of stalled growth in business-to-business software.
  2. A salesperson responsible for both prospecting and closing will always default to closing, which starves the pipeline and makes growth unpredictable.
  3. Separating prospecting, closing and account management into distinct roles is what makes pipeline generation measurable and repeatable.
  4. Customer lifetime value is increased more reliably through retention, expansion and pricing than through new customer acquisition.
  5. Growth that appears sudden from outside took years of unglamorous work that the founders themselves underestimated at the start.
  6. Accountability should be assigned for outcomes rather than for activities, since activity metrics are met without the outcome being achieved.
  7. Setting a specific growth target and working backward to what it requires exposes whether the current approach can produce it.

Who should read it

Founders and sales leaders in business-to-business software building a repeatable pipeline and sales organisation.

Where it sits in the reference 2

Business models
Business models

Who recommended it 1

David Cancelreported
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