SaaS Customer Growth Mistakes to Avoid

The worst advice in SaaS isn't new. It's the old advice still costing founders millions. In 2025, it’s frustrating to see B2B SaaS startups still crippled by the same outdated advice that has led to countless failures. While the landscape evolves rapidly, some fundamental missteps persist, often masked by the allure of "hyper-growth" or investor FOMO. As we guide vendors on Software Finder and analyze market trends, these patterns become painfully clear. The most detrimental advice I still see being followed includes: 1. "Launch Fast" Over Product-Market Fit The MVP concept has been distorted. Rushing a product to market without deeply validating core customer needs is a recipe for wasted resources and negative feedback.  We see vendors on our platform struggle when their offering doesn't clearly solve a problem for a targeted audience, regardless of how quickly it was launched. 2. Over-Reliance on Early-Stage Funding Raising massive capital without a clear path to profitability isn't a badge of honor; it's often a ticking time bomb. The focus should be on building a sustainable business model that generates revenue. Software Finder emphasizes connecting businesses with solutions that demonstrate tangible value, which inherently means a viable underlying business model. 3. Neglecting Profitability for Unsustainable Growth: Chasing top-line revenue at the expense of profitability is fatal in any economic climate. Investors are scrutinizing burn rates more than ever, demanding a clear path to sustainable unit economics. Our insights from working with hundreds of software providers consistently show that long-term success isn't about growth at all costs, but about disciplined, profitable expansion. 4. Assuming Scalability Without Validation B2B SaaS is inherently scalable, but that doesn't mean it’s effortless. Underestimating the operational, support, and infrastructure demands of a growing customer base leads to critical bottlenecks. 5. Ignoring Customer Success: High churn negates new customer acquisition efforts. Retention and long-term value are paramount for sustainable growth. A focus on acquiring new customers without retaining existing ones is a negative growth cycle. At Software Finder, our mission is to bring clarity and trust to the software discovery process. This extends to how we advise vendors: focus on delivering undeniable value, achieve true product-market fit, and build a sustainable business model that prioritizes profitability alongside growth. Hype fades, but a solid foundation endures.

Only 4% of SaaS companies ever reach $1M ARR. Only 0.4% reach $10M. Most founders fail not because they didn’t work hard… …but because they scaled wrong. Here are 6 brutal lessons I wish I knew before scaling my SaaS companies: 1. Don't fall in love with your solution. No one wants to buy more software. No one wants AI. They want their Top 3 problems solved. Hyper focus on this and align your software to solving them and you'll win. 2. Don't try to sell to everyone. Do the work to do a proper ICP exercise. Pick a specific segment of the market and focus on that. Pick the segment that has Budget, is an Early Adopter, and has the Urgent and Important Problem that you solve. 3. Don't describe your Features. I'm a Product Guy at heart. So I love talking Features. But customers respond to the outcome your Features enable. So craft your value proposition around the outcomes your software and AI delivers. 4. Don't outsource Marketing. The greatest Founders embraced Founder-led GTM. It's a superpower today here on LinkedIn. Don't outsource it. Own it. Speak directly to your customers every day here on LinkedIn and your ICP will line up as inbound leads to buy from you. 5. Don't give Demos. There's a huge difference between giving a demo and running a Sales Process. There's a huge difference between having a "Start Free Trial" and creating a real New User Experience that makes users successful. Create a real sales process that makes customers say yes. 6. Don't skip Metrics Every Monday I update the same spreadsheet with my metrics from the past week. It shows me how the metrics are trending week after week so I'm making decisions based on data instead of my Monday morning Jitters of Founder life. I've made every single one of these mistakes and learned the hard way. They won't kill you, but they'll certainly slow you down. This is why I share the lessons learned so you can recognize and course correct. If you're a SaaS Founder and you want to build a scalable GTM Strategy that fuels the growth of your business, then grab a complimentary copy of my 5-Point SaaS Growth Strategy Guide. Just follow the link in the comments below to grab your copy👇

The Cheesecake Factory isn’t known for great food. They’re known for a menu that never ends. Pasta? Got it.  Tacos? Sure.  Thai food? Why not. But let’s be honest: when’s the last time you had a great meal there? That’s the problem.  When you try to be everything to everyone, you end up being average at best. And that’s exactly the mistake Matt Lhoumeau, CEO of Concord, made when scaling his company. Contract management? Every business needs it. Which meant every company was a potential customer. So they said yes to everyone. SMBs. Mid-market. Enterprise. “It’s a dollar? I’ll take it,” Matt told me. At first, it felt like growth. More customers.  More revenue.  More traction. But soon, the cracks started to show. Customer needs? All over the place. Go-to-market org design? A mess. Their ability to serve anyone exceptionally well? Gone. That’s when Matt had the realization: They WERE The Cheesecake Factory. So they made the hardest decision of all: downsize the menu. No more trying to serve everyone.  No more stretching themselves thin.  They focused. Zeroing in on the right customer segment and serving them better than anyone else. And that decision?  It saved the company. Here’s the SaaS lesson: More isn’t always better. When you try to be everything to everyone, you become forgettable. So, leaders, time to check your menu. Are you running a Cheesecake Factory?

If you're a founder with ~10 employees about to grow, there's 1 mistake you need to avoid making. Chasing marquee customers once you find PMF. It may sound obvious, but I've seen far too many founders fall into this trap of shortcutting their way to big logos. At this stage, you need to target small customers that help you learn and grow. Ideally, referrals from the customers that helped you confirm PMF in the first place. Why? → It’s easier to build trust with smaller customers. When that trust is built, they’ll help you build the business, whether through feedback, guidance, case studies, referrals, etc. → You need the practice. You’ve JUST achieved PMF. You want to ensure you’ve nailed down your implementation/onboarding processes before getting in with a big name. Landing a marquee customer is important (especially if you want to attract other big names). But don’t rush it.

In my experience working with founders over the years there are three mistakes that are made far too often. 1️⃣ Trying to Do Everything Themselves It’s tempting to wear all the hats, but burnout is real. Delegating and building a strong team early on isn’t a luxury—it’s a necessity. Remember, you can’t scale alone! This doesn't always have to be with full time employees. 2️⃣ Ignoring Customer Feedback You may love your product, but do your customers? Too many founders get stuck in their vision and miss the chance to adapt to real customer needs. Feedback is your secret weapon—use it! Surveys, phone calls, testimonials are all great ways to get this. 3️⃣ Focusing on Growth Over Profitability Chasing growth at all costs can lead to financial strain. Sustainable businesses strike a balance between acquiring customers and managing costs effectively. And most of the time profitability will lead to growth! As I mentioned, I've had experience working with founders to focus on all of these. At Big Creek Growth our aim is to take tasks off the plate of founders, get that all important customer feedback and help founders grow their company effectively and efficiently! #BusinessGrowth #StartupAdvice #Profitability