The Software As A Service (SAAS) model changed industries by allowing smaller companies and startups access to high-quality technological infrastructure. Now, the Scale As A Service (ScAAS) model is extending even more access to smaller companies that may have less capital. Our CEO Andrew McConnell covered the topic for Forbes magazine. Here’s an excerpt:
Step in the new business model that is solving this problem. Let’s call it scale as a service (ScAAS). These are companies like WeWork who say: “Don’t worry about all the complexities of real estate and office management. For a monthly fee, we will take care of this for you and you can focus on running your business.” These are companies like the food hall in New Orleans that take away all of the things that have traditionally made running a sub-scale restaurant impossible and who simply take a cut of the total revenue for the service.
This is also what we do at Rented.com. Hiring a top-notch revenue manager or marketing department does not make sense for a rental manager with fewer than 500 properties, even though the impact these functions would have on the business is undoubtedly positive. Leveraging our in-house team gives rental managers access to the skills, technology and talent they would never otherwise be able to access or afford and frees them up to focus on their true competitive advantage: the unscalable and local parts of their business. Like many other ScAAS companies, we simply takes a percentage of the revenue we help the managers earn, limiting their risk and aligning our incentives.
You can find the article, which features a guide for proper assessment of ScAAS providers, in its entirety here.