Andrew Rasmussen - Canny Blog https://canny.io/blog/author/a13n/ How to build a more informed product Fri, 19 Apr 2024 16:37:09 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://canny.io/blog/wp-content/uploads/2024/04/cropped-canny-avatar-rounded-32x32.png Andrew Rasmussen - Canny Blog https://canny.io/blog/author/a13n/ 32 32 Canny’s guide to growing your team at your bootstrapped startup https://canny.io/blog/growing-boostrapped-startup-team/ https://canny.io/blog/growing-boostrapped-startup-team/#respond Thu, 25 Jan 2024 11:05:00 +0000 https://canny.io/blog/?p=5517 Getting hiring right when bootstrapping is a challenging but critical task. Here’s how we approach startup hiring and how you can do it too.

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In the world of SaaS, especially bootstrapped SaaS, revenue growth is the name of the game. But how can you grow almost as fast as VC-backed companies? The answer lies in strategic hiring.

We’ve learned a lot about startup hiring since starting Canny. We launched Canny in 2017, and after reaching ramen profitability, began hiring in 2018. 

We discovered that organic growth and deliberate hiring decisions are crucial. Unlike heavily funded companies, bootstrapped companies like Canny don’t feel the same pressures to hire rapidly. We grow our team as our revenue grows. We always keep profitability top of mind.

How we began hiring

Our first hire at Canny was a big step for us. Sarah and I were managing everything ourselves, but we were also quickly getting stretched thin.

“We were starting to feel overwhelmed. From building our product to doing marketing, we split founder time into many areas. Since we were profitable, we started to ask ourselves – how can we best spend our money to grow faster?”

Sarah Hum, co-founder at Canny

At some point, we became so busy that we realized we needed help. Our main duties were demos, customer support, content marketing, and product development. This is a lot for two people. The day-to-day operations were keeping us from focusing on the bigger picture.

Work anywhere

On top of that, we didn’t have any experience with sales, support, or marketing. We wanted to bring in experienced people who focus on one thing full-time and do it even better than we could.

We asked ourselves: “What’s the one role that would make the biggest impact right now?”

We landed on content marketing. Many advisors have stressed the long-term importance of content marketing and SEO for SaaS companies. That it takes 6-12 months to really start working. This determined our first hire.

Lessons from the first few hires

Every new team member changed Canny a bit. We learned to look beyond skills. Fitting in with our company culture mattered a lot.

When culture-add team members join, they fit right in. They also hit the ground running right away. This is an awesome feeling for everyone.

Sometimes, things won’t work out – it can be difficult to technically vet for a role that you’ve never done yourself professionally. We learned that take-home assessments are very important. It gives us an idea of the work a candidate will produce and how well they take feedback. For example, today we ask all content marketing candidates to complete a blog post outline and draft. 

We went through lots of challenges, and we view them as lessons. The first time we had to let someone go was extremely difficult but necessary. Going forward, we tried to polish our processes and learn from our mistakes. We are still learning.

Key lesson: don’t rush hiring. Take time to find people who you are confident are great at their job. This may involve a longer hiring process and asking others for help.

Tools and processes we used

We started simple. Online job boards and our network were our go-to. In particular, Hacker News: Who is hiring? and RemoteOK forums came in handy.

As we grew, we adopted tools like Recruitee. It helped us reach more candidates and streamline the hiring process.

Initially, our process was basic:

  • Understand what’s bringing in revenue (sales, marketing, advertising, etc)
  • Determine what role we need to fill based on that
  • Find gaps in the business – where are we stretched thin?
  • Make sure we have enough money to hire

As we hired more, we saw the need for structure.

We set up clearer stages in the interview process and defined roles for team members in hiring. It made everything more efficient and fair.

Our team enjoys being involved in hiring – it gives them a sense of ownership. They feel that they have a say in what happens at Canny.

Recently, we hired a head of operations, Clare, who’s now in charge of recruitment. Here’s what she shared about hiring:

“Hiring is a task that many people own at Canny. This means we need to be crystal clear on our ideal candidate from the start.”

Clare Garrity, head of operations at Canny

Key lesson: start with simple tools and grow your process as your startup expands. Emphasize clarity and structure in hiring. Involve your team for a sense of ownership.

Signs for other founders

How do you know when it’s time for you to hire? Most founders try to do it all themselves for way too long. Others hire too early.

Here are a few signs to look out for. They’re good indicators of whether or not it’s time to hire.

Startup hiring

Hiring when you need to

Timing is everything in hiring. It’s tempting to build a large team quickly, especially when you see others doing it.

At Canny, we learned to hire in sync with our revenue growth. This means understanding your business’s actual needs and not just hiring to fill perceived gaps.

Ask yourself: “Is this role essential for our next growth phase?” If the answer is no, it might be wise to wait.

Making cost-effective decisions

Bootstrapping teaches you the value of every dollar. We apply this to hiring – we’re strategic about who we hire and when.

It’s not just about salary costs. Factor in the costs of recruitment, training, and onboarding. Sometimes, it’s more cost-effective to outsource certain tasks temporarily or use automation tools until you’re ready for a full-time role. We still hire freelancers and consultants from time to time.

Balancing skills and budget constraints

In a bootstrapped startup, you might not be able to offer top-market salaries. This means getting creative. You can offer equity, flexible work arrangements, and growth opportunities.

Look for candidates who are motivated by the role and your company’s vision as opposed to just a paycheck.

Key lesson: grow the team alongside revenue. Assess the real need for each role. Prioritize strategic, cost-effective hiring decisions over rapid team expansion.

How to drive quality applications and fill roles quickly

We mentioned that rushing through hiring isn’t the best idea. However, taking too long to fill a role might hurt your efficiency. It’s all about balance.

At Canny, attracting a large pool of quality applicants wasn’t an overnight success. It took time, experimentation, and refining our approach. Here’s what we learned.

Create a clear and streamlined hiring process

Admittedly, we haven’t always had a solid process. But we’ve learned along the way.

We have clear stages for our hiring process and assigned owners to each stage. This helps with accountability and efficiency. From the initial application to the final decision, every step is structured. This makes the process smooth for both candidates and our team.

We’re happy to see the results of these efforts now. Today, we publish a listing and get 1,000+ applicants. Recruitee is a great platform that helps – it pushes the listing to Google, Indeed, and LinkedIn. Hacker News: Who is Hiring is another great source of candidates.

This presents a new challenge – going through such a large number of applications. Here’s how we overcome it.

  1. A freelancer goes through all applications, filtering out candidates who:
  • Don’t have relevant experience
  • Didn’t answer the “Why do you want to work at Canny?” question well
  • Don’t meet any other requirements we included in the job listing (eg. timezone, experience)

Note: we find that onboarding and initial collaboration are tough outside of North American time zones. That’s why we prioritize them.

2. For some roles, we first schedule an initial screen. For others, we send them the technical assessment right away.

3. Then we schedule 1-2 technical interviews (depending on the role).

4. We progress candidates to the culture interview.

5. We book a final call to present them with an offer and discuss it.

We ask our new hires how the hiring process was for them. Here’s what one of our recent hires shared with us:

“I applied around Christmas time. I didn’t expect to hear back until late January. In the end, Canny got back to me within 10 days – the first company I heard back from. After each stage, I heard back within an hour! The team was lightning-fast with feedback. It felt like they were as excited about me as a candidate as I was for joining Canny!”

Niall Dickin, engineer at Canny

Build a strong employer brand

We quickly realized how our brand affects attracting top candidates. Many people don’t want to work for any company. They want to connect with the brand.

We’ve been consistently showcasing our culture and values through our content. The goal has always been to highlight what makes Canny unique. Sharing our story has always helped with that.

Form CTA

Adapt to economic changes

The economy always plays a role in hiring.

Economic downturns can lead to a larger pool of applicants. But they also bring challenges like budget constraints.

We don’t let economic fluctuations deter our hiring. Instead, we adapted. We only hire when we have the budget for it. Being bootstrapped helps with this. We also try to focus on essential hires that directly contribute to our growth and sustainability.

Key lesson: invest in attracting the right candidates. Use recruitment platforms, community forums, and social media. Showcase your employer brand, and evolve with the market.

Canny’s hiring approach

We’ve spent a lot of time polishing up this process. We wanted to make sure that we’re hiring efficiently, treating candidates fairly, and finding the best culture fit. Here’s how we achieve this.

Setting clear criteria for each stage

Every stage of our interview process has specific criteria for passing or failing. This clarity helps us maintain consistency in our assessments. It also ensures that all candidates are evaluated based on the same standards.

We use Recruitee’s scorecards to set clear passing and failing criteria. This helps everyone involved in hiring.

Canny's hiring process

We want to be fair and transparent throughout the process. It differs from role to role, but here’s how it works:

Screen

This is the 15-30-minute call to get an alignment check. We try to understand where each candidate has been (work-wise) and where they want to go. 

 To assess how it went, we ask ourselves:

  • Did this person meet the minimum criteria we set? (experience, skills, etc.)
  • Did they answer all the questions thoroughly?
  • Can we give them the career opportunity and progression they’re seeking?
  • Will they fit in well?
  • Do their compensation expectations match what we can offer?
  • Will the logistics work out (primarily time zones)?
  • Do they care about joining Canny more than just wanting any job?

We place a high emphasis on relevant experience. For most of our roles, we look for candidates who have experience in:

  • A similar role
  • B2B SaaS companies
  • Startup environment

“We work as a team to identify who our ideal candidate is. It’s important to distinguish between the areas of the role a person can learn on the job and what experience we need them to have already.”

Clare Garrity, head of operations at Canny

This is not just about the years in the field. We look for practical skills and knowledge.

“It’s important to hire engineers that can identify an issue’s root causes, not just mask its symptoms.”

Dan Murray, engineer at Canny

Assessment

We design a technical assessment for every role. It’s meant to be a quick take-home assignment that mimics a typical work project at Canny.

For engineering roles, we’ve decided to put the assessment first, before the screen. This helps us remove bias and surface technically able candidates faster.

Candidates can get a sense of what working at Canny feels like. They get a few days to complete it, so they can work at their own pace.

“Canny’s interview process involved a fun and relevant take-home task. This is a rarity when interviewing for software engineer roles.”

Niall Dickin, engineer at Canny

Some companies forego the assessment stage to move faster. We found that, if you design the assessment well, grading it should take only a few minutes. When you can evaluate assessments this fast, you can still consider many candidates. This benefits both you and all the candidates who applied. And everyone gets a taste of collaboration.

Technical skills are a cornerstone of our assessment. This is especially true for engineering roles. 

We seek engineers who think deeply about problems and are committed to sustainable, long-term solutions. We also need people who aren’t afraid to try something they’ve never done before and “fake it till you make it.”

Dan Murray, engineer at Canny

Technical interview(s)

We might schedule one or more technical interviews depending on the role and the candidate. This is a chance for the candidate to dive deeper into their technical knowledge and explain their thought process. We explore areas like:

  • Technical knowledge and skills
  • Logical and critical thinking
  • Creative and effective problem-solving
  • Attention to detail
  • Adaptability and eagerness to learn and try new things

“It felt less like a test environment and more like pair programming.”

Niall Dickin, engineer at Canny

Culture fit

We put a heavy emphasis on culture fit. So far, we’ve managed to build a team where everyone feels comfortable with each other. We’d like to keep it this way.

“I like to say we’re looking for a culture add, not just a culture fit. Of course, the vibes need to feel right, but I like to see diversity of thought or experience.”

Sarah Hum, co-founder at Canny

Ultimately, we want everyone to enjoy working at Canny. That’s why we assess the culture fit very seriously. 

Team Canny 2023

We select three people to conduct the culture interview. We always have one of the co-founders (usually Sarah) there. Dan, one of our engineers who has been at Canny for 5+ years, is generally there too.

“Most of all, we look for candidates who understand and value the MVP approach. It’s about identifying what is the 20% effort we can invest for 80% of the value. This mindset is crucial in startups – where resources are limited, and efficiency is key.”

Dan Murray, engineer at Canny

The third person is typically someone who wouldn’t work directly with that new hire. We want this person to assess the candidate’s culture fit versus the technical skills at this point.

We focus on things like:

  • Are they easy to talk to?
  • Do they seem like a well-rounded and interesting person who can add something to the team?
  • If we met them outside of work, would we want to spend time with them?
  • Will we be comfortable with them during our team retreats?
  • Will they be comfortable communicating with our team?
  • Do they make a good impression?
  • Do they seem like a person who will take the initiative and help others?
  • Are they a culture add?

“Some people assume that making it through the technical interviews means you’re basically in. We actually end up rejecting many candidates at the culture stage. That’s how much we value the culture aspect. Several times, it’s the deciding factor between two or more technically solid candidates.”

Sarah Hum, co-founder at Canny

Simon Sinek, a well-known speaker on business leadership, shares similar advice for finding culture fit.

Interviewing can be stressful. We try to make the process as enjoyable and valuable as possible. Our team members seem to think we’re doing a good job with this 🙂 

“This was probably the best interview experience I’ve had with a tech company! And it was a strong selling point for me. It was clear the interviews placed as much emphasis on testing your technical abilities as well as your compatibility within the team. It’s nice to feel valued for more than just how good your code is!”

Niall Dickin, engineer at Canny

Offer

We always schedule a call to present a candidate with an offer. I’ve done every offer call since Canny’s inception and enjoy doing them. Just sending an email with an offer letter feels dry and impersonal. We want our new hires to feel special from the get-go.

During the offer call, we discuss:

  • Position, responsibilities, and title
  • Compensation (salary, benefits, stock options)
  • Work arrangements (remote job, tech setup)
  • Perks (retreats, etc)
  • Start day
  • Any pre-planned time off
  • Next steps
  • Anything else the candidate wants to cover

Key lesson: assess technical skills of each candidate. Don’t forget about the culture fit. Lots of people underestimate it.

How bootstrapped startup founders can build a great team

Here are some lessons we’ve learned at Canny that can help you on this journey.

Learn from our experience

One of our early challenges was hiring for roles we weren’t familiar with (sales and marketing). If you’re in a similar position, ask others for advice. Ideally, you have a friend who is experienced in sales or is a founder who has run a sales team. They can provide valuable insights and help you avoid common pitfalls.

Hire slow

Don’t rush into hiring decisions. Taking the time to find the right person is crucial.

Letting someone go is painful. It can also disrupt your team and operations. A deliberate approach to hiring pays off in the long run.

Assess your hiring needs carefully

Make sure each role you plan to fill is absolutely necessary and within your budget. Overstaffing can drain your resources. Understaffing can hinder your growth. Balance is key here.

Implement an onboarding process

Canny didn’t have a formal onboarding process for our first few hires. You might not need one either, especially at the very beginning. With time, start thinking about it to drive efficiency.

“Onboarding is one of the most important aspects of the employee experience. It’s a new hire’s first chance to see if what we sold them in the interview process is true. So we take onboarding seriously at Canny.”

Clare Garrity, head of operations at Canny

We use tools like ClickUp to outline goals for the first day and week. This sets new hires up for success and gives them space to ask questions.

“One of the aspects I enjoyed the most during onboarding was the welcome Slack channel. We set it up for every new hire. Everyone on the team asks them a fun question and shares their answer. Sometimes other team members also answer, and you learn a little about everyone.”

Clare Garrity, head of operations at Canny

These small things make a big difference, especially for fully remote teams like Canny.

Be economical and aim for ROI

Before you start spending on recruitment, set ROI criteria. This way, you’ll know what works and what doesn’t. Then, you can adjust your process for the future.

While we are mindful of costs, we don’t compromise on the quality of our hires. We invest in recruitment processes that bring us excellent candidates. This sometimes means spending on effective job boards or tools that bring in higher-quality candidates. As a result, we get skilled candidates who also align with our culture and vision. And we spend less time finding the perfect fit.

Canny hackathon

We need to be economical but also understand that unfilled roles can have costs. For example, productivity may decrease, existing team members can get overworked, and we may fall behind.

Key lesson: don’t rush with hiring. Make sure you actually need to hire and can afford it.

Hire, but be smart about it

Hiring is a tightrope walk, especially when you’re bootstrapping like we are at Canny. It’s all about finding that perfect balance.

Each phase of our Canny journey has taught us that hiring isn’t just about filling a seat. It’s about finding those gems who will bring something extra to the table.

Our biggest learning: take your time and don’t be afraid to wait for the right fit. Trust us, it’s worth it in the long run.

In short, hire smart, stay true to yourself, and keep building that dream team.

Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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The best way to collect user feedback https://canny.io/blog/the-best-way-to-collect-user-feedback/ https://canny.io/blog/the-best-way-to-collect-user-feedback/#respond Wed, 08 Jul 2020 13:00:03 +0000 http:/?p=1 Most companies do feedback wrong. It's demoralizing to users and creates tons of extra work for you. The best way to collect user feedback? Let your users submit and vote on feature requests.

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generic feedback forms aren't the best way to collect feedbackThis user feedback form should look familiar. Most apps and websites have one.

But, is it really the best way to collect user feedback?

We’d argue that it isn’t.

It’s actually a very costly way to collect feedback: it creates a ton of urgent, manual work.

What should you do instead? Let your users submit and vote on feedback.

This switch will save you time and money, help you make better product decisions, and your users will love it.

Here’s a deeper dive into the issues with using a feedback form to collect user feedback. And, why user voting is a better solution.

Issue #1: Feedback forms waste time and money

The problem isn’t the form itself — it’s what happens after the form is filled out.

Feedback submitted via forms creates a mountain of requests. Full-time jobs are made just to process these requests, respond, and keep track of what was said.

At best, a spreadsheet is maintained to keep track of how many people ask for specific features. At worst, someone has to remember that “a lot of people have mentioned this bug recently.”

Either way, valuable information gets lost.

And, managing requests with a feedback form is expensive.

It costs you in labor hours associated with sifting through feedback. You might make bad product decisions because you didn’t have enough information. Both of these are costly.

Canny free trial

Issue #2: Canned responses are demoralizing

Responding to every piece of feedback isn’t realistic. There’s too much.

To get around this, most companies use canned responses:

This message is clearly automated. The user is left wondering, “Did anybody read my feedback? Are they going to build my feature?” Who knows.

How demoralizing. Why would they ever want to give feedback again?

If people don’t feel like you care about what they have to say, they’ll stop caring about you. This hurts the strength of your brand, which can negatively impact growth.

Issue #3: Live chat isn’t made to collect user feedback

Live chat is a great, lightweight way to communicate with your users. It‘s just a costly medium for collecting user feedback.

Live chat is essentially the same flow as the feedback form. It still generates tons of time-sensitive, manual work for your support team.

Consider how people typically use live chat :  with their friends. They’re used to getting a personal, timely response.

With canned responses and multi-hour delays, you’re setting them up for disappointment.

Solution: Let users submit feedback and vote on requests instead

Let’s say you let your users submit feedback requests, and vote on which new features your team should build.

Users can vote with the click of a button, so collecting this data requires zero effort.

user-votes

If you use a tool like Canny, you can associate each vote with a user id, so you know exactly who is voting. In other words, you know exactly which users want which features.

Remember that spreadsheet? The one that keeps track of which users want which features? The one that most support and product teams create and maintain manually?

When users can vote on features, you’ll get more complete data, but with a tiny fraction of the effort.

Keep users in the loop

Letting users vote cuts out tons of support work. And, you’re left with something manageable.

Responding to just the top 5% of user feedback requests addresses 50% of votes.

This makes it possible to write detailed responses. By doing so, users will know you’re listening.

They’ll love being involved in your product development process. They’ll specifically mention that you’re great at responding to feedback. This might mean 5-star app reviews, and when they tell their friends about your product.

Direct, meaningful interaction with users sets you apart from your competition. It boosts word-of-mouth growth.

Dive into the data

Now that you’ve got a beautiful pile of organized data, you can easily answer questions like:

  • What are my top 5 feature requests?
  • Which features does our biggest/most important/longest-standing customer care about?
  • Which customers want XYZ specific feature?

You can even take it a step further. Your CRM knows all sorts of stuff about your users. So, if you use a tool that integrates with your CRM, you can do further “feedback segmentation.”

You could choose to only view votes from:

  • Enterprise customers
  • Churned users
  • Qualified leads
  • …and so on

This filtering is especially helpful when your team is focused on a specific goal. Maybe you’re focused on reducing churn or driving enterprise sales. Viewing votes from churned users or enterprise customers would be helpful here.

Simplify the process of collecting user feedback

Most companies collect user feedback wrong. It creates unnecessary work for them and demoralizes their users.

But there’s a simple solution. By letting your users submit and vote on feedback, you get more complete data for a tiny fraction of the effort. And your users will love you for it.

Still on the fence about if you need a user feedback tool? Check out our article on determining if a user feedback tool is right for you. You can also try Canny free to see it in action.

Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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Managing customer expectations for new feature requests https://canny.io/blog/managing-customer-expectations/ https://canny.io/blog/managing-customer-expectations/#respond Wed, 12 Jun 2019 15:54:02 +0000 http://blog3.canny.io/wordpress/?p=1498 If you’ve worked in a customer-facing role at a SaaS company, then you’ve received feature requests before. How do you manage these customer expectations?

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If you’ve worked in a customer-facing role at a SaaS company, then you’ve received feature requests before. Loads of them. You’ve also probably thought about how to manage your customers’ expectations when it comes to these requests.

The typical company responds to a feature request by saying “Thanks for your feedback, we’ve passed it on to the team.”

More times than not, the user never hears back again about their idea. They’re left to assume it was promptly forwarded to a room to be printed and fed to a paper shredder.

Or fed it to a cat.

We can do so much better.

At the end of the day, you grow your SaaS business by A) getting more customers, or B) delivering more value. A is the primary responsibility of the sales & marketing orgs, and B is owned by the product org.

How does the product org deliver more value? We all know this: by listening to your users.

So why then, when our users give us brilliant ideas on how we can deliver more value, improving our business and theirs, do we respond with the paper shredder reply?

This is one of the reasons we started Canny in the first place. Giving feedback to companies today is a bad experience. As a result, users are left feeling unheard and unloved, and companies are missing out on loads of valuable insight.

How can we do better?

People want transparency

When someone shares an idea with you, they really want to know two things. Are you going to build the feature I care about? If so, when? If not, why not?

By answering these two simple questions, people will be super impressed. This helps you stand out from every other SaaS company out there.

But how do we answer those questions? That’s the tricky part, and why most companies don’t bother.

When you’re a 1-2 person company, you’re likely a founder and therefore responsible for support, sales, and product. You already know if you’re going to build feature X, and when / why not. You can just tell them.

Customers will still be impressed, and this will help you stand out from your larger competitors.

Being transparent gets harder as you grow

But as team size grows, the customer-facing team and product org becomes more and more siloed. The support/sales person talking to the customer isn’t necessarily familiar with the product roadmap, and the decisions behind it.

For a 5 to 50 person company, the answer is usually just a quick conversation away. Modern messaging tools like Intercom make it really easy to loop in your colleagues from the product org, to get the info you need. A bit more friction, but still not bad.

For teams of hundreds or thousands people, transparency gets challenging. It might not be clear who the person is with the information you’re looking for. You might have to check-in with the marketing/PR team, to make sure you aren’t leaking a big, splashy launch.

A great way to solve this problem is to maintain internal product roadmaps. This way, your whole team can easily stay in touch with the improvements your product team is making.

This is why big companies are so bad at responding to user feedback. Because it’s a hard problem.

It’s a problem worth solving

Whether you’re a small team or a big team, it’s worth spending the extra effort to deliver a transparent response. It’ll impress your customers, which will pay dividends in brand loyalty and satisfaction.

Another massive benefit is product adoption.

Every time someone requests a feature, keep track of that somewhere. Once you start building the feature, tell everyone who wants it that you’re building it. Once it’s ready to use, tell everyone who wants it that it’s ready to use.

Hint: Canny was built to do exactly this.

By doing this, you’re not only closing the feedback loop, but also driving adoption of your new feature. When people use more features, they get more value from your product, and are less likely to churn.

Churn is the #1 enemy of every SaaS company.

Never make a promise you can’t keep

You’ve almost definitely heard the expression “under promise, over deliver”.

This expression definitely applies to being transparent with your product roadmap.

You need to be careful that you aren’t transparent in a way that could be untrue. Otherwise you’re lying to your users, which is arguably worse than saying nothing at all. It’ll work against your brand, instead of for it.

Here’s a handy graphic for what your product team is thinking, and what that should translate to in a customer-facing promise.

The important takeaways from this are:

  • Never tell a customer you’re going to ship a feature until you’re 99.9% sure the feature will ship. That means it’s either on the roadmap, or being worked on, and you trust your product team to deliver on what they say they will.
  • Even once something is being worked on, always exaggerate the timeline. Engineering estimates are comically bad.

Find a time where you’re 99.9% sure the project will be complete by then. I find multiplying your estimate by 2x or 3x is typically safe, but it varies team to team.

The important thing is that you’re never lying to your customers, because this will work against you in the long run.

Build features that close deals

This process is a two-way street. Not only should your customer-facing folks ask your product team about the roadmap, they should help inform the product roadmap.

Let’s say you’re on a demo with a big enterprise lead. You’ve run through the product, and they like what they see.

“Oh by the way, do you have features X, Y, and Z?”

You have X and Y, but are missing Z. What do you say?

Some founders / salespeople say “fake it till you make it”, and lie by saying they do have the Z. Don’t do this – if you’re caught lying, the deal’s definitely dead, and you lose trust in your company’s brand.

Here’s what you should say:

“We don’t have Z right now, but I’ll talk to our product team, and see if we’d be able to commit to building it in a short period of time.”

Again, you aren’t making any promises you can’t keep (some salespeople are known for doing this – don’t!).

Sometimes Z turns out to be a feature that you know a lot of other companies would be interested in, and your team has wanted to build it for a while. In this case, it’d be a no brainer to build it to close a big deal.

Break down silos in the name of transparency

The ideas in this post aren’t inherently complicated. Especially at a small company, being transparent is quite easy, and super worthwhile.

As the team grows, the hard part is that the customer-facing and product teams become siloed off from each other.

  • Support is treated as a necessary cost center that should be reduced.
  • Sales is focused on bringing in new business, and not really incentivized to talk to product.
  • Product is too busy improving the product to meet with other teams.

But getting these teams to work together is critical. You’ll close more deals, your product team will be more informed, and your customers will definitely notice.

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Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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Defending your early-stage SaaS startup against email spam https://canny.io/blog/defending-your-startup-against-email-spammers/ https://canny.io/blog/defending-your-startup-against-email-spammers/#comments Wed, 18 Jul 2018 22:18:30 +0000 http://blog3.canny.io/wordpress/?p=647 Last week seemed like an ordinary week until we started getting some strange emails in our inbox.

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Last week seemed like an ordinary week. As ordinary as it gets while traveling the world and bootstrapping a startup. Until the email spammers showed up.

We started getting some strange emails in our inbox:

What’s this about? I plugged it into Google translate out of curiosity. It’s an automated response. The recipient is on vacation.

Cool, someone in China is trying Canny out! They invited a teammate to their team, and they’re on vacation. No big deal.

But then the next day I woke up to a dozen more emails like this:

This snazzy email client is Missive

Okay, what’s going on? If this many people are sending automated responses, how many emails are they sending?!

I did a quick database query to count teammate invites. My heart sank. They had sent 80k over the past week. Holy heck. We’re under attack. They’re programmatically sending thousands of HTTP requests which are resulting in us sending emails.

But why? Why would someone want to invite random people to their team on Canny? What’s in it for them? Are they just having fun? Ugh.

That’s what I thought at first. Then I took a look at one of the emails they sent:

That’s a weird company name. That doesn’t look legit at all.

I shared it with a teammate who can read Chinese. He instantly identified it as spam. They’re telling people to join a QQ group to get discounts on online gambling.

They’re using Canny to send people email spam. We pay to send their emails. We take the deliverability hit when people mark our emails as spam. Oh hell no, I don’t think so!

Stopping the Attack

We took a few immediate steps to stop the attack.

First, we deleted their Canny account. This way their requests would fail instead of triggering emails. We found a small handful of user and company accounts associated with this bad behavior. We removed them all.

Next, we blacklisted their IP address. They were sending every HTTP request from the same IP address. We simply added it to our blacklist in AWS WAF (Web Application Firewall). Their requests could no longer hit our servers.

At this point, they would have to create a new account, and use a different IP address to start the attack again. This isn’t too hard, but buys us time to think about how to avoid this attack in the long term.

Finding an 80/20 Solution

We’re an early-stage startup. We don’t have a team of security engineers to devote weeks to this. Every minute spent protecting ourselves is a minute that could have been spent on growth.

That’s why it was important that we find an 80/20 solution. Something good enough to make Canny an undesirable target, but nothing more. No over-engineering.

We put ourselves in the shoes of the attacker. We realized that picking which SaaS you want to send your email spam is a lot like picking which bike to steal.

Nicer bikes are more valuable, but have more protection. The thief must optimize for the nicest bike with the least amount of protection.

As long as your bike has at least as much protection as other similarly valued bikes, it won’t get stolen. This is because there are easier targets – the thief can make more money with less effort.

This makes it clear why early-stage SaaS apps are a target for email spammers: they’re an easier target. They have fewer resources to invest into security than big companies.

So how do we make our SaaS harder to attack?

1. Block Obvious Attacks From Email Spammers

Some behavior is obviously malicious. For example, someone sending requests faster than humanly possible. This can easily be blocked using rate-based rules in AWS WAF.

But you have to be careful. You don’t want to block a paying customer from doing something legitimate. You have to be thoughtful about what you can and can’t block.

We made a list of obviously bad behavior and blocked it all via either AWS WAF or our server application.

2. Better Awareness

The attack went on for several days before we even realized we were under attack. In that time they significantly ramped up volume. They probably thought we hadn’t noticed, so they could send more. They were right.

If we can immediately realize when we’re under attack, and act, this minimizes attacks. It also shows attackers we’re on to them. They’ll probably move on to another target then and there.

We created a new #fraud thread in Twist. We made a list of suspicious events, like a user sending more than 10 team invites in a day. Whenever this happens, the server pings our #fraud thread.

Our team uses Twist for team communication

This behavior could be legit: maybe someone is inviting their entire team. That’s why we chose to send notifications for these events instead of outright blocking them. They warrant a quick manual review, but aren’t necessarily bad.

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Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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Lessons Learned

I hope you enjoyed our story. It was definitely unexpected and stressful, but we came out of it smarter and stronger.

If you work at an early-stage SaaS company, or someday want to, here’s a quick list of the most important takeaways:

  • As an early-stage SaaS company, you are a target. You have less security than your larger peers. Think especially hard if you have a free tier/trial and send emails that contain user generated content.
  • Awareness is crucial – know when you’re being attacked. Think about how people might attack you, and what would make you aware that it’s happening. It’ll probably only take a few minutes.
  • Don’t over-engineer. It’s easy to dream up the perfect solution to every fraud problem you’ll ever have. Don’t. Your time is valuable. Find a solution that delivers 80% of the value in 20% of the time.

Thanks for reading. If you’d like to share some security best practices, leave a comment below!

Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

All Posts · Twitter

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How to be productive without an office https://canny.io/blog/productive-without-office/ https://canny.io/blog/productive-without-office/#comments Tue, 29 May 2018 12:02:18 +0000 http://blog3.canny.io/wordpress/?p=527 Whether you’re living in a big city, traveling, or something in between, you don’t need an office to be productive. Here are some tips for productivity without an office.

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If you’re starting a startup, or working remotely for one, you probably don’t have an office. That’s a good thing!

Offices are expensive – you may as well be paying rent twice. In the early-stage, you just don’t need one.

In the past year we’ve grown our startup to be ramen profitable and hired our first remote teammates. Still growing. Still no office. Still no plans on changing that.

We’re also traveling the world. We’ve visited and worked full-time from 20 cities in 14 countries and 3 continents. We work from work-friendly cafes or whichever Airbnb we’re staying at.

Before that we lived in San Francisco, also working from cafes. Whether you’re living in a big city, traveling, or something in between, you don’t need an office to be productive.

Tell your brain it’s work time

Hey Brain, it’s work time, so let’s get some work done!

That’ll work just about as well as “Hey Brain, it’s exercise time, so let’s go to the gym!”

Sometimes it works, but sometimes your brain says “I’m tired” and decides staying on the couch is a better idea. More often than not, your brain is actually the one telling you what to feel and do.

But there are some tricks you can use to get yourself into work mode.

Namely, your brain associates places with activities. That’s why working from bed is a terrible idea. It’ll tell your brain that your bed is for working and sleeping. This leads to sleepy work sessions and stressful sleep sessions. Nobody wants that.

Bed is for sleep and watching The Office

Find a specific room or desk at home and only use it for working. Then your brain will associate being there with being productive. If you get distracted, leave your productive space. This way you don’t let your brain associate it with unproductiveness.

Enough about brains.

“Go to work”

Working from home is definitely a luxury. You don’t have to commute. You can spend more time with your family. You get to work from the comfort of your own home.

But be careful you don’t get too comfortable. Don’t just roll out of bed and hop on your laptop.

What I mean by this is, mentally, you still have to “go to work”. Take a shower, get dressed, eat breakfast. Whatever your morning routine is for going into the office, do that for working at home too.

Otherwise, your sleepy morning and productive work session meld together. This makes for an unproductive, stressful mess. Find that separation. Do your morning routine. Mentally go to work. In this case, that means your productive space at home.

Form CTA

Get out of the house

If you don’t have a space you can dedicate to productivity, or home doesn’t work for you, it’s no problem. Get out of the house!

Luckily there are about a million work-friendly cafes out there. It’s totally normal and appropriate to spend several hours working at a cafe. Many of them specifically have Wi-Fi and outlets to encourage workers to visit.

Some even have cute cat friends (Yaboo Cafe, Taipei)

There’s definitely unwritten etiquette though. Most of it is straightforward if you aren’t a jerk. For starters:

  • You must purchase something for every 2-3 hours you stay there. Otherwise they’re losing money on you. A cafe is a business, just like yours.
  • Only take up one seat to save space for others. Especially if it’s crowded.
  • If they specifically say they aren’t laptop-friendly, then don’t work there.

There are also several criteria that make a cafe a good place to work:

  • Good Wi-Fi. Without fast Wi-Fi, you probably can’t do your job. Some cafes have a 30 minute limit for how long you can use the Wi-Fi. Avoid these cafes.
  • Power Outlets. Imagine you’re in the middle of some hard work when that “3% battery remaining” window pops up. Nothing is worse!
  • Seating. The best cafes can get quite crowded because, well, they’re awesome to visit and work from. Make sure they have plenty of seating or you get there early.
  • Good Coffee/Tea. This one isn’t a must have, but is definitely a nice to have. A delicious beverage can make you look forward to going to work.
  • Good Food. It’s hard to work for more than 3-4 hours without at least eating a snack. Food means you can stay even longer, and not feel bad about that because you’ve ordered a drink and a meal.
  • Hours. Is it open every day of the week? Early mornings? Evenings? Late nights?

If you can find a cafe that checks all these boxes, it’s a keeper. Make it your go-to spot and head there a few times a week while you explore and find other great places.

I’ve also had success working from libraries and even fancy hotel lobbies. Hotel lobbies usually have Wi-Fi, a cafe, bathrooms, and don’t mind you stopping by for a few hours. Some of them are super nice!

It’s actually mind-blowing how much impact going to a cafe can have. Just today I was sitting at home thinking about what to write about, and I didn’t feel like working. My mind was cloudy, and it felt like I was pushing a boulder up a hill.

I hopped in the shower, got dressed, and biked to a cafe. I ordered an iced mango green tea (in Chinese, because we’re in Taiwan). I sat down at a big table with a bunch of other people working away.

coffee-shop
Our main spot in Kaohsiung, Taiwan

The difference was night and day. Getting out of the house, “going to work”, and being around productive people made working 10x easier. I brainstormed 15 blog post topics and wrote this post in a few hours.

If you ever feel like you’re having a bad day, it’s not too late to turn it around. Changing up your environment can make all the difference.

Try some of these awesome tools

We’ve compiled a list of awesome tools that our team uses to stay focused.

  • Noise canceling headphones. At a noisy cafe? Trying to tell your roommates you’re busy? Disconnect from distractions.
  • Spotify. Listen to music without lyrics. The “Focus” mood in Spotify is your new best friend.
  • Qbserve. The metrics you track are the ones that go up. If you keep track of how much time you spend working, you’ll work more. Simple as that.
  • Do Not Disturb. I had an iPhone for 2 years before I knew this feature existed. It’s super useful to unplug from the daily ongoings.
  • Twist. We use Twist as our team communication app. They have a nifty “Snooze” feature that ignores all notifications for a set amount of time.
  • Forest. Plant trees by not visiting distracting websites / apps for a certain amount of time. It’s a cute, fun way to game productivity.
  • Healthier. Don’t forget to take breaks too! We take two minute breaks every half hour.

Keep the momentum going

It can be demotivating to work hard and not see any results. Regardless of your environment, you need to know that you’re working hard for a reason.

That’s why momentum is so important. It creates a positive loop: work hard, ship, get results, celebrate, repeat.

Without results, work can feel like a drag. So break your work into smaller projects, ship often, and celebrate your results!

Celebrating new features with some red

You’ll notice that we aren’t even talking about offices anymore. Productivity tools, celebrating results… these things have nothing to do with working from an office. Productivity is more about your mindset and workflow than needing a physical office. So save your money, make life a little more interesting, and go explore some cool cafes! 😎

We post about our daily adventures in work and travel on our Instagram stories @carryoncode. To read more about our journey as digital nomads, check out this post.

Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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Year in review: Lessons learned from bootstrapping our SaaS startup https://canny.io/blog/lessons-learned-bootstrapping-saas/ https://canny.io/blog/lessons-learned-bootstrapping-saas/#comments Tue, 13 Mar 2018 22:14:41 +0000 http://blog3.canny.io/wordpress/?p=442 It’s officially been a year since we launched our SaaS startup, Canny. We’re proud of how far we’ve come, but we’d definitely do some things differently. Here are the highlights of our journey so far, and some of our biggest learning lessons.

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It’s officially been a year since we launched our SaaS startup, Canny. We’re proud of how far we’ve come, but we’d definitely do some things differently. I’ll share the highlights of our journey so far, and some of our biggest learning lessons.

In case you don’t know already, Canny is a user feedback tool. We help software companies track feedback to build better products.

Happy Birthday, Canny! 🎂🍾🎉😃

The Journey

In the past year, Sarah and I:

  • Launched Canny on Product Hunt. We got thousands of website visits, 350+ trial sign-ups, and a few dozen paying customers. Huge win!
  • Moved out of our cozy apartment in San Francisco to become digital nomads. We lived and worked from 14 cities in 10 countries: US, Canada, UK, France, Hungary, Germany, Spain, Hong Kong, Vietnam, and Thailand.
  • Got 142 paying customers. This includes several leading companies like Flexport, MongoDB, Compass, and Bench.
  • Grew Canny from $0 to over $100k ARR. About 80% of that is profit, which means we can afford to start hiring fantastic people!
  • Started hiring a remote team. We’re hiring a Content Marketer and a Full-Stack Engineer. We’re up to our necks in applicants and we’ve done a dozen or so interviews.
  • Raised $0. We’re bootstrapped and proud – no outside funding needed.

What a year! Can’t wait to see what the next one has in store for us.

Lessons Learned

Here are the top 5 things we wish we could go back and do differently. We’ve come a long way, but there’s so much room for improvement.

1. Identify what kind of SaaS you are

There are two major SaaS sales models: low-touch and high-touch.

Low-touch SaaS is about volume.

  • Your product costs $10 to $500 per month
  • People need very little interaction with your team to become customers
  • Your landing page call-to-action is “Sign up for a free trial”
  • Your primary growth channel is marketing

High-touch SaaS is about building a sales engine.

  • Your product costs north of $6k per year
  • People talk to your sales team to learn about and purchase your product
  • Your landing page call-to-action is “Request a demo”
  • Your primary growth channel is sales

High-touch SaaS: Too many cats High-touch SaaS: Cat being pampered

The reason you should pick one (to start out with) is that it focuses you. If you sell to a specific type of customer, in a specific way, it simplifies everything. Which features you build, how your pricing works, what you optimize your landing page for, and more.

Rather than doing alright at both, you can be excellent at one. Startups don’t win by being alright, they win by being excellent.

This section is inspired by Patrick McKenzie’s article, The business of SaaS. If you haven’t already, give it a read.

2. Simplify everything

You can simplify more than just your sales model. You should strive to simplify everything your users interact with. From the top of the funnel to the bottom: your content, ads, landing page, pricing, onboarding, product, and more.

People are busy. They have short attention spans. They’re constantly being targeted by thousands of corporate agendas. If you make something the slightest bit difficult, they won’t take the time to figure it out. They’ll drop off. They’ll stop reading your blog post. They’ll close your landing page. They’ll quit using your product.

Rage quit

But if you make it easy, they’re far more likely to engage. And they’ll remember that “Canny is easy to use”. Just like they remember that “dealing with Comcast is my worst nightmare”. In the early days, you need loyal fans. You need people to love your company, otherwise growth will be an eternal grind.

We wouldn’t have the traction we do today if we hadn’t focused on simplicity. Customers regularly reach out, telling us they love how straightforward our product is. Blog readers mention how our writing is easy to read. This translates into more awareness, trials, customers, and inevitably success.

3. Prioritize marketing

Since we’re low-touch SaaS, marketing is our primary method of acquiring new customers. Yet we only spent about 5-10% of our time on marketing last year. Not nearly enough.

Part of the problem is that Sarah and I are a designer and engineer. Building product is what we enjoy doing, and what we’re best at. That’s why we spent so much time on product.

Yet in October when we wrote a blog post about how we got to ramen profitability, our trial sign-ups doubled. That’s right, doubled. Our trial-to-paid conversion rate stayed constant, meaning we grew twice as fast that month. From a single blog post.

Marketing Spike
Free trial sign-ups

Why aren’t we doing this all the time?! Because it’s hard. Because we aren’t good at it. Because it doesn’t feel natural.

Excuses. If you’re looking to only do what you’re good at, don’t start a company. Dedicate time to what will move the needle, not what’s comfortable. You’ll learn a heck of a lot this way too.

4. Narrow your target audience

This is our first time running a SaaS company. In the early days, we were happy just to have paying customers. We sold to anyone we could: consumer apps, open source, SaaS, marketplaces, games, and more. We didn’t really see it as a problem.

More customers = More money = We’re doing better. Right?

Wrong. The problem is that it makes your product and messaging unfocused. Our consumer customers need different features than our SaaS customers. They also resonate with different messaging on our landing page and in our product. By trying to serve both, we did a worse job than serving either one alone.

Narrow use cases

The consumer customers ended up churning more. It turns out that feedback is more valuable to SaaS companies because it drives revenue. We’ve since narrowed our focus.

Of course, hindsight is always 20-20. We didn’t know who we should sell to until we tried selling to everyone. If you don’t know who your target audience should be, you don’t understand your users well enough. Get out of your office and talk to them.

5. Ruthlessly manage your time

In a startup, there’s an endless list of things you could spend your time doing. How do you most efficiently spend your time?

The worst part is that many activities feel productive but really aren’t. Take email, for example. If every time you get an email, you drop what you’re doing to deal with it, you’ll spend your entire day on email. Obviously, falling behind is a problem, but you can dedicate chunks of time to work through it. Context switches are expensive.

Another culprit is building features that aren’t mission critical. Sometimes a customer asks for a feature, and it’s tempting to say “we’ll have it done today”. We’ve done this many times.

Promising features
One of many promises

We wanted to impress people and deliver value as fast as possible. It felt right, but we ended up building a lot of features that weren’t useful to many people. This wasn’t an efficient use of time. It’s much better to pick one high-level strategy, and patiently execute it.

The best way to solve this is to set measurable goals. What is your team trying to accomplish this year, half, quarter, and month? What must be done to hit these goals? What can I work on today that will move the needle the most? Thinking this way helps you make unbiased decisions about how to spend your time. Otherwise, you’re just acting in the heat of the moment: inefficiently.

Be helpful

On top of these 5 things, remember that you are in the business of helping people. The reason people buy your product is because it solves their problem. The reason people read your blog is because they want to learn something and be more successful.

The more you can get in the mindset of helping others, the better your company will do. I wrote this article because I think it would have been insanely valuable to read a year ago. I hope it helps you now.

This past year has been a blast, and we look forward to many more. We’ll keep sharing what we learn as we go.

Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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How we Bootstrapped our SaaS Startup to Ramen Profitability https://canny.io/blog/saas-startup-ramen-profitability/ https://canny.io/blog/saas-startup-ramen-profitability/#comments Tue, 24 Oct 2017 13:47:13 +0000 http://blog3.canny.io/wordpress/?p=238 It’s been seven months since we launched our SaaS startup and we’re ramen profitable. Canny makes enough to pay for its own expenses and our personal living expenses. This is far less money than we made working at Facebook, but a huge milestone for our bootstrapped startup.

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It’s been seven months since we launched our SaaS startup and we’ve reached ramen profitability. Canny makes enough to pay for its own expenses and our personal living expenses.

This is far less money than we made working at Facebook, but a huge milestone for our bootstrapped startup. We’ve eliminated one of the biggest risks of failure: running out of money.

In this post I’ll cover how we got here, and what we’ve learned.

How we found our burning problem

I won’t bore you with generic advice. You’ve heard it a thousand times. Solve a burning problem! Make something people want! Great advice, but not super actionable.

Instead, I’ll share how we found our burning problem.

We actually started with a problem of our own, then pivoted to a more valuable one.

Our original problem

We followed Paul Graham’s advice and started with a problem we had ourselves:

As users, it doesn’t feel like companies listen to our feedback. They’ll say “thanks, we’ll pass it on to the team”, but nothing ever happens. This is demoralizing. Apps are buggy and missing useful features. Fixing them would mean making all software experiences better.

generic-email-reply
Sad, generic reply

We built a community where people could post and vote on feedback for any product, publicly.

product-pains

Around 5,000 people posted and voted on ideas for several hundred products. It was a neat beta, but retention was weak. It was difficult to get teams to subscribe to feedback about their product.

Learning Lesson: We kind of just assumed our problem was valid and started building the product. We should have talked to more people first. It would have saved us months. We would have realized it wasn’t something people really needed or would pay for.

MRR: $0 (Oct, 2016)

The bigger problem

We starting talking to a ton of teams about user feedback.

  • How do you collect feedback from your users?
  • How do you keep track of user feedback?
  • How do you decide what to build?

It turns out there’s a reason it doesn’t feel like companies are listening to our feedback. It’s because they aren’t.

It’s not that they don’t care. They care deeply. It’s just that feedback is a mess. Product managers don’t have time to read every chat message, email, and support ticket. And even if they did, they wouldn’t remember it all.

This is when we realized there was a business problem causing our consumer problem.

To validate our new findings, we built a widget to help teams collect and keep track of user feedback.

canny-widget

I still remember the first time someone paid us $19/mo for it. We were ecstatic. It was the first time we’d ever sold something we built. The best part: they’re still using us today, a year later.

Learning Lesson: Talking to people is a great way to discover and validate problems. Writing code isn’t. Charging money is the ultimate form of validation. If a total stranger pays for your product, they must think you’re solving some problem for them.

MRR: $100 (Dec, 2016)

Understanding our value proposition

At this point, we knew what we had to do: fork the repo and re-market our community as a SaaS tool.

Sarah’s a product designer and I’m a software engineer. Building the MVP was the easy part.

But how do you make a landing page? What words go on it? How do you price it?

These are sales and marketing problems that we had never faced before. The way to solve these problems, we learned, is to understand your value proposition:

  • What problem do you solve?
  • Who has that problem?
  • How do they describe the problem?
  • How big of a problem is it?
  • How much would they pay for a solution?
  • What other solutions are out there?
  • How are you better / different?

Without answers to these questions, you’re just guessing.

Learning Lesson: Sales and marketing is about understanding the problem you solve, and clearly communicating that. If you’re struggling with them, you may not understand your value proposition. We spent a lot of time reading blog posts about sales and marketing. We should have spent that time talking to our target customer.

MRR: $100 (Mar, 2017)

Launching our MVP

We started with a soft launch to the teams already using us.

When we shipped our pivot, we were able to migrate everyone over from the old site. The core product was similar enough.

This was a great way to get a bunch of people trying our “paid” product from day one. We let it run for a week or two, worked out the kinks, then launched on Product Hunt.

product-hunt-launch

Our launch went amazing. Over 350 companies tried Canny that week. Dozens ended up paying after our 30-day trial.

Several factors played into our successful launch:

  • We solve a problem for software companies. Product Hunt’s community is mainly people working in tech. This audience was highly relevant for us.
  • We emailed the 5,000 people who had left feedback in our community. We let them know about our pivot, and that we were launching on Product Hunt.
  • We already had a few paying customers. This meant we knew we had something other people would pay for too.
  • Chris Messina hunted us. Thanks Chris! (he has a form where you can ask him to hunt you too)

Learning Lesson: If you sell to tech companies, Product Hunt is a great place to launch. It’s a one-time trigger, not your marketing strategy. If you do it sooner, you’ll get valuable feedback. If you do it later, you’ll get paying customers. I’m glad we did it later.

MRR: $1,000 (May, 2017)

Building an Inbound Engine

We’re coming up on 100 paying customers, and we’ve never done any outbound sales. Our strongest channel is organic, via “Powered by Canny”.

This is one of the huge benefits of building a user-facing SaaS product. By user-facing, I mean our product is used by our customers’ customers.

powered-by-canny

Thousands of people use our product every day. Some percentage of those people are PMs or founders, and have the problem we solve. They then sign up for Canny, wanting to use it for their own product.

This channel is boosted by the fact that my co-founder Sarah is a super talented designer. Several of our customers have switched from competitors specifically for our design.

Since we already had a bunch of inbound traffic, we’ve spent most of our time iterating on our funnel:

  • Landing Page → Pricing Page: Iterated on and simplified our landing page. Experimented with the headline. Included key features.
  • Pricing Page → Register Page: Changed and simplified our pricing. Added a slider to remove anxiety around scaling pricing.
  • Register Page → Free Trial: Simplified our registration forms.
  • Free Trial → Using Trial: Added user onboarding to encourage key actions. Made it easier to integrate.
  • Using Trial → Paying: Created a drip campaign in Intercom to encourage key actions. Added billing reminders.
  • Paying → Retained: Offering friendly, prompt customer service. Nurturing to make sure people are getting value. Promptly fixing bugs + building features where it makes sense. Adding sticky integrations like Slack + Zapier.

As a result, our funnel has gotten pretty darn good, and most months our churn is zero. We’ve been able to more than triple in just a few months, from our organic channel.

Learning Lesson: Start marketing earlier. Write less code. Since we’re an engineer + designer, we constantly fall back into a “product mindset”. Features are great, but they usually aren’t the most optimal way to drive your business.

MRR: $3,500 (Oct, 2017)

saas-profits
MRR: Up and to the right!
New call-to-action

Umm, how do you live on $3,500?

If you live in San Francisco, you’re probably wondering how $3,500/mo is anywhere near ramen profitability.

Four months ago we moved out of our cozy apartment in San Francisco to be digital nomads. Right now we’re in Valencia, Spain. We’re also a couple.

We’ll split an Airbnb for $1,000 a month, work from cafes, and eat cheaply. Canny spends hundreds a month, mostly on hosting and other SaaS.

Learning Lesson: If you can get away with it, you can save a lot of money working nomad. As long as you have Wi-Fi, you can work anywhere. We’re actually more productive working remotely because we don’t know as many people. All we do is eat, sleep, work, and explore.

Intrigued? Check out our travel Instagram or read Sarah’s post, Building our Startup as Digital Nomads.

Next Up After Our Ramen Profitability Milestone

We’ve built a solid engine that converts visitors into paying customers. It’s time to switch gears and focus on traffic.

  • Blogging: Seems to work well for SaaS companies like ours. We love what Eoghan says about content: the less you try to make it convert, the better it does. We’re focusing on posts that benefit our target customer, rather than trying to sell Canny.
  • Advertising: We’ve begun experimenting with FB + Google ads. Turning $X into $Y seems like a no brainer if Y > X.
  • Side Projects: There’s this idea that you can build a useful product, and give it away for free. For example, Front built reallygoodemails.com. If done right, these projects can be huge business drivers. We’re product people, so this lets us do what we do best.

We’ll let you know how it goes in our next post! Thanks for reading.

Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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What you’ll get out of Y Combinator’s Startup School https://canny.io/blog/what-youll-get-out-of-y-combinators-startup-school/ https://canny.io/blog/what-youll-get-out-of-y-combinators-startup-school/#respond Fri, 16 Jun 2017 08:40:43 +0000 http://54.158.119.27/?p=129 We just completed the inaugural batch of Y Combinator’s Startup School for our startup Canny. It was a blast, and we learned a ton. For those of you thinking about doing the next batch, we’d love to share our experience with you. We also have ideas for how

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We just completed the inaugural batch of Y Combinator’s Startup School for our startup Canny. It was a blast, and we learned a ton.

For those of you thinking about doing the next batch, we’d love to share our experience with you. We also have ideas for how YC could do even better.

The Program

The founder track had 3,000 companies from 141 countries. This was split into 94 groups. Each group got the pleasure to work with a YC alumni mentor — someone who has founded a YC startup in the past.

We were part of group 18 and our mentor was Boris Jabes, founder of Meldium and all around awesome guy 😍.

Office Hours

Our group had office hours on a weekly basis. Since founders were from all over the world, these were held in a group video chat. Each company spent 5–10 minutes asking for advice on our hardest problems. Boris gave most of the advice, but it wasn’t uncommon for other founders to chime in too.

Boris laying down some wisdom

Video Lessons

A new lesson was released on YouTube every week. Here’s a list of them all, in the order they came out:

These videos are incredible. They’ve managed to pack decades of the best startup advice into 15 hours. Delivered from some of the biggest names in tech. For free. Stop reading this and go watch them instead! 😉

Weekly Metrics

Every Tuesday we had to submit our updated metrics, including week over week growth. This held us accountable.

If they went down, it sucked and motivated us to do better. If they went up, it gave us a reason to celebrate.

Obviously every startup should do this anyway. But like A/B testing, it probably doesn’t happen as much as it should.

Networking

We got the pleasure to meet some inspiring founders, like John Saddington. He’s been blogging for 16 years and had so much to teach us about producing content. He’s also a productivity master—raising two daughters and starting a company, all while vlogging every day.

Here’s John’s video from the day he met Sarah:

Having a great network is like steroids for your startup. It makes it easier to do sales, marketing, recruiting, fundraising, and more. This is mostly because people are so much more willing to meet with you if someone they know introduces you.

Startup School was filled with smart, motivated people. We’re lucky to have gotten to know some of them. 🙂

Live Office Hours

YC ran three sessions of “Live Office Hours”, where they had YC partners give founders advice. These were recorded and posted publicly to YouTube. (sessions onetwo, and three)

Sarah and I were very lucky to be one of the nine startups who were interviewed. The partners who interviewed us were Yuri Sagalov and Sam Altman. Not only did we get one-on-one time with tremendous people, over ten thousand people watched it.

For months after this video was posted, our Intercom was filled with messages like this:

This is from someone who is now a paying customer! Doing live office hours turned out to be great inbound marketing for us, particularly because we sell to startups.

Only 9 out of 3,000 startups got the opportunity to do live office hours, so we were really lucky 😊. Other startups will still get some inbound / awareness from the presentation videos.

Feedback for YC

This was the first batch of Startup School. The first time is never perfect, but it went pretty well. We have some ideas for how they could do it even better next time.

We wish we were grouped with other companies in our space (B2B/SaaS).
It seemed like the groups were arranged randomly. Our group had companies working on AI, VR, education, energy, and much more. While the diversity was cool and interesting, it didn’t always feel like the best use of our time.

The metrics form was confusing.
The form isn’t accessible anymore, otherwise we’d include a screenshot. It was unclear whether we were supposed to submit the total metric, or the weekly change. We filled out the wrong thing multiple times. Adding an example, or doing a content pass, would be appreciated.

Having over twenty people in a video chat was insane.
Each team got 5 minutes to talk to Boris while the rest of us listened. We didn’t even get to talk because time went over. It was low value and a bad first impression.

Our first weekly office hours

After week one, a few teams dropped off and we split into two separate calls (one morning, one evening). We ended up with about 6 people per chat, which felt a lot better. Ideally, it’d be this way from the start.

Since the experience got better by week two, we’re confident the next cohort will be a breeze.

Thanks!

Huge thanks to Group 18, Boris Jabes, and Y Combinator. We’d do it again in a heartbeat.

Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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Introducing Canny https://canny.io/blog/introducing-canny/ https://canny.io/blog/introducing-canny/#respond Wed, 08 Mar 2017 09:47:20 +0000 http://54.158.119.27/?p=139 Growth is driven by the value you provide your users. Understanding their needs prepares you to deliver more value. This is why listening to user feedback is crucial to being successful. This can be a daunting task, especially as you scale. How do you keep

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Growth is driven by the value you provide your users. Understanding their needs prepares you to deliver more value. This is why listening to user feedback is crucial to being successful.

This can be a daunting task, especially as you scale. How do you keep track of who wants what? How do you encourage more feedback, without it becoming overwhelming?

These problems are what inspired us to build Canny, a simple way for your team to stay on top of user feedback.

How it works

So many companies still collect feedback via email, live chat, or Zendesk tickets. Imagine the time it takes to process hundreds of conversations and respond to hundreds of emails. Canny helps you stay on top of user feedback while spending your time valuably instead.

Ask your users a simple question like “Which features should we build?”

Check back later, and voilà:

This is a screenshot of our customer Kitsu’s feature requests board.

A board is a place where your users can post and vote on ideas for a specific topic (eg. feature requests). Other popular topics include bug reports, blog topics, and FAQs. Boards can be public or private — some teams use boards to keep track of feedback internally.

You can follow up with comments or change the status of a post to “in-progress” or “complete”. The beauty is that only the people who voted on the post get notified.

This keeps your users in the loop and lets them know you’re listening. They’ll love you for that.

Make informed product decisions

We aren’t trying to automate product management. Just because your users ask for something doesn’t mean you should build it. You still need to decide which features align with your mission and key metrics. Feedback helps you be more informed in this process.

Canny was designed to help your team answer questions like:

  • What are the top 5 most requested features?
  • Which customers care about feature X?
  • Coming Soon: What do paying customer want most? (via segment filters)

Without answering these questions, how can you be confident in your product decisions?

Building a product without listening to your users is like spelunking without a headlamp. It won’t get you through the cave, but it sure does make the journey easier. 🧀😅

Give Canny a shot

Clearly we love feedback so try it out and let us know what you think.

Andrew Rasmussen

Hi, I'm a co-founder of Canny. Before that, I was a software engineer at Facebook. I love JavaScript, rock climbing, nerding out about the future, and SaaS.

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