Excerpted from a Sandhill.com article by Peter Yozzo, Founder and CEO, ThinkHR titled ” What to Consider Before Pivoting Your Business to the Cloud Model”, dated Tuesday, May 27, 2014
Pivoting your business to the cloud? Here are five things you should do and five mistakes to avoid when making the transition.
- Have a clear vision and be fully committed to the cloud business model.
- Make adjustments and create a plan including a detailed multi-year financial model using a SaaS or cloud methodology.
- Ensure your board and key investors are in alignment and supportive of the strategy shift.
- Have adequate funding. Moving to a subscription model requires a longer cash “runway” to break even.
- Make sure your existing customers understand what you’re doing. Create a clear and compelling communication plan.
- Attempt to pivot without first testing your hypothesis with potential customers.
- Attempt to pivot with the existing management team only. It will require different skill sets and a different culture to be successful.
- Force existing customers to convert to the cloud option immediately. Create a comfortable migration plan.
- Maintain both business models indefinitely. It’s organizationally confusing, complex and expensive, especially for startups.
- Expect immediate success. Be ready to work very hard with little to show for it for a substantial period of time.
For the complete article, click here.