From Agency to SaaS Success: The Proposify Journey of Streamlining Sales Proposals
Company profile
Company business details
Motivation to build the product
The founders were motivated by the challenges they faced in their own agency when it came to creating and managing proposals. They recognized the inefficiencies and frustrations that arose from using traditional tools and sought to create a solution that would simplify and improve the proposal process for businesses.Problem that their product solves
Proposify solves the problem of disorganized and inefficient proposal creation and management. The end users are sales teams and professionals who need to create visually appealing and effective proposals quickly. Solving this problem is important for them as it directly impacts their ability to close deals and manage client relationships effectively.Their unfair advantage
Proposify's unfair advantage lies in its user-friendly interface and the ability to provide insights into document interactions, which helps sales teams optimize their proposals based on real-time feedback.Strategies
Pre-Launch (Product Development & MVP)
Customer Development and Feedback Gathering
Before launching Proposify, Kyle Racki focused on gathering customer feedback to refine the product. He started by creating a landing page and driving traffic through AdWords to collect email addresses. This pre-marketing effort allowed him to build a small email list of around 100 people, which he used to solicit specific feedback about the product. This process was crucial in understanding customer needs, leading to the realization that users wanted features like proposal templates and online signatures, which he had not initially considered.
Launch Stage
Pitch Competitions for Exposure and Funding
During the launch stage of Proposify, Kyle participated in a pitch competition at Volta in Halifax. This event not only provided him with the opportunity to showcase Proposify but also led to winning the competition. The exposure attracted the attention of an early-stage VC firm that had previously turned them down, resulting in a potential deal for funding. This funding was critical for Proposify, as it provided the financial support needed to continue development and marketing efforts.
Growth Stage
Investor Buyout Strategy
Proposify, under the leadership of Kyle Rackey, executed a strategic buyout of existing investors to secure additional capital for growth. This involved negotiating with the Canadian Business Growth Fund (CBGF) to facilitate a complete buyout of previous investors, allowing them to exit while simultaneously injecting approximately three million dollars into Proposify's balance sheet. This strategic move not only provided the necessary funds for operational stability during uncertain times but also streamlined the investor base, enabling a more focused approach to growth.
Sales Team Expansion Strategy
In response to modest growth during the pandemic, Proposify decided to invest in expanding its sales team. Kyle Rackey and his team recognized the need to scale their sales efforts, particularly focusing on high-value accounts. They hired three quota-carrying sales representatives and planned to increase this number as they moved further into 2021. This strategy aimed to enhance their market presence and drive revenue growth by targeting larger clients, thus capitalizing on the modest growth they were experiencing.
Product Development Investment Strategy
With the additional capital secured, Proposify focused on investing in product development and engineering. Kyle Rackey highlighted the importance of enhancing their product offerings to better serve their growing customer base. This included hiring more engineers and refining their product features, particularly for the enterprise segment. The goal was to create a more robust product that could cater to the needs of larger clients, thereby increasing customer satisfaction and retention.
Learn more about Proposify
Proposify CEO Kyle Racki: Hits $7m revenue driving expansion into 200 enterprise accounts
Growing SaaS founder brand on LinkedIn with Kyle Racki @Proposify
