Are you ready for 2026? It may seem like a long ways away, but it’s only a few short years. That’s why it’s important to start planning your budget allocation now so you can make sure you’re ready for the new year.
This is especially important when it comes to planning your SaaS budget. You need to make sure that you have the right technology in place and that you’re using it properly so you can succeed in 2026.
1. Not having a budget in the first place
It’s not uncommon for new SaaS companies to forgo budgeting, especially when they’re still in the early stages of building their product. In fact, according to a 2018 survey from Clutch, 61% of small businesses did not have a budget at all.
But just because it’s common doesn’t mean it’s a good idea. If you don’t have a budget, you have no way of knowing how much money you can afford to spend on your SaaS tools. This can lead to overspending, which is one of the most common causes of startup failure.
If you don’t have a budget, now is the time to create one. Even if you’re already spending money on SaaS tools, it’s not too late. A budget can help you get a handle on your current spending and make more informed decisions about where to allocate your dollars going forward.
When planning, don’t forget to allocate resources for compliance. Tools like Seers.ai help SaaS businesses stay GDPR and CCPA compliant, reducing the risk of hefty fines while building customer trust — a smart investment for long-term stability
2. Not having a clear budget allocation strategy
Too many businesses make the mistake of not having a clear strategy for how they’re going to allocate their SaaS budget. This can lead to overspending, underfunding, or even completely missing out on the tools and technologies that are most important for your business.
Before you even start building your budget, you need to have a clear understanding of what your priorities are. What tools do you absolutely need to succeed? What tools are nice to have, but not necessary? What tools can you live without, at least for now?
3. Not understanding the sales cycle
If you don’t understand how long it takes to convert a lead into a customer, you might not allocate enough budget to your sales team.
For example, if you have a long sales cycle, you’ll need to invest in marketing activities that keep your brand top-of-mind with prospects.
To avoid this mistake, take a close look at your sales cycle and make sure you allocate enough budget to support your sales team throughout the entire process.
4. Not using a sales enablement platform
We can’t talk about sales and marketing software such as a cold email tool without mentioning sales enablement. Sales enablement platforms are designed to help sales teams onboard new salespeople faster, organize and distribute sales content, manage customer interactions, and more.
Using a sales enablement platform can help your sales team be more efficient and effective. It can also help your marketing team create more targeted content and campaigns. All of this can help you drive more revenue for your business.
5. Not investing in customer success
Customer success is the act of making sure your customers are happy and getting value from your product. It’s an important part of the customer lifecycle and can help you reduce subscription churn, increase customer lifetime value, and drive growth.
Customer success is an important investment for any SaaS company, but it’s especially important for companies that are looking to scale. As you grow, you’ll need to invest in customer success in order to keep up with the demands of your customers.
If you don’t invest in customer success, you run the risk of losing customers to churn. This can have a big impact on your bottom line and can make it difficult to achieve the growth targets you’ve set for your company.
6. Not investing in sales and marketing
SaaS companies have to spend a lot on sales and marketing. That’s just a fact of life in the industry.
In fact, many SaaS companies spend around 40% to 50% of their revenue on sales and marketing.
While that might sound like a lot, it’s actually a good investment. After all, if you don’t spend money on sales and marketing, how will potential customers know about your product?
And even if they do know about it, how will they know why they should choose your product over a competitor’s?
Spending money on sales and marketing is essential for growing your SaaS business. But not all marketing spend has to be expensive. Referral programs, for example, are highly cost-effective because the only real cost is the software subscription. With tools like ReferralCandy, you can set up and automate referral marketing, turning your happy customers into your most affordable sales channel.
7. Not investing in a CFO or finance team
In the early stages of a SaaS company, the founder or CEO might manage the budget. But as the company grows, it’s important to bring in a CFO or finance team to take over budgeting and forecasting.
“A lot of founders don’t want to give up control, but you have to,” says Kipp Bodnar, CMO at HubSpot. “Founders need to focus on the vision and the product, and let the finance team focus on the numbers.”
A CFO or finance team can help you build a comprehensive budget, create accurate forecasts, and identify potential risks. They can also help you make strategic decisions about where to allocate your budget.
Conclusion
The only thing that’s worse than not having a budget is having a budget that doesn’t align with your business goals. Don’t let that happen to you. Instead, take the time to avoid these budget allocation mistakes and you’ll be set up for success in 2026 and beyond.
