How PYXiS Scales Software Businesses: Sales, Pricing, Talent

My name is Andrew Patton, and I am a Portfolio Manager at PYXiS Software Group. Having spent nearly a decade within the ecosystem of our parent company, Constellation Software, and 2.5 years in my current role, I’ve gained a unique perspective on navigating the complexities of running software businesses. At PYXiS, my work focuses on two core areas: partnering with the CEOs of our five portfolio companies to develop and execute strategy and identifying the next great companies to join our growing group.

The Challenges of Running a Software Business

Running a software business isn’t easy. Brent Beshore, the Founder and CEO of Permanent Equity, summed it up well:

"Operating a small business feels like a daily knife fight where you get out of bed, try not to get stabbed, get back in bed, and do it all over again."

It can seem like a never-ending flurry of customer challenges, employee problems, investor woes, etc. Still, when you step back, the real progress comes from focusing on what’s important but not always urgent. That’s where PYXiS comes in. Since we never sell the companies we acquire, we spend a lot of time thinking about what it takes to build great, enduring businesses.

Focusing on What Really Matters

Here are a few areas we typically focus on to help companies improve their operations and unlock their full potential.

1. Building a Repeatable Sales Engine

There’s a big difference between having good sales numbers and having a good sales engine. It’s the process that makes the results repeatable. You need to track the right data and understand the levers you can pull to drive growth.

• For high-volume, low-ticket software companies: Are you tracking the number of demos? Your demo-to-close rate? Close rates by segment?
• For low-volume, high-ticket businesses: Have you clearly defined your addressable market? Do you know your largest prospects, and what resources have you allocated to these opportunities? Are you consistently managing your pipeline over time?  Do you have dedicated resources to sell additional modules to existing customers?

By tracking and refining these processes, we help businesses develop the discipline needed to create predictable, sustainable sales growth.

2. Getting Pricing Right

Pricing is one of the most impactful—and often most overlooked—aspects of running a business. We spend a lot of time helping our companies analyze and adjust their pricing models to reflect the value they provide.

Some of the questions we dig into include:

• How much revenue are your customers generating with your software?
• How many users interact with your product?
• How consistent is your pricing across similar clients?
• Have you updated pricing to reflect all the added features over time? When was the last time you adjusted pricing for new customers?
• Have you thought through bundling or packaging opportunities for your add-on modules?

Pricing is a powerful growth lever, yet many businesses leave it on autopilot. Small adjustments can yield big results, allowing you to invest more into your business.

3. Payments Execution (If Applicable)

If payments are part of your business, it’s worth spending time getting them right. We have our own payments platform, allowing us to align our interests with our customers.

When we look at payments, we ask questions like:

• How should we price payments—fixed price, cost-plus, or tiered?
• How do we balance software pricing with payment pricing?
• Are we protecting ourselves from risk?

Payments are a huge topic; we’re only scratching the surface here. But the key is to take a thoughtful, strategic approach instead of just going with the status quo.

4. Investing in Talent

None of this works without the right team. That’s why we emphasize talent development and organizational structure.

We support our businesses by:

• Hosting educational events to help employees learn and grow.
• Connecting team members with peers in similar roles at other companies in our group.
• Ensuring we have the right people in the right roles to execute our growth plans.

When you invest in your people, you set the foundation for everything else to succeed.

A Data-Driven, Experimental Approach

What ties all of this together is our approach of using data to drive decisions and being willing to try new ideas. It’s not easy, but when you focus on these core areas day in and day out, you start to see real financial progress, which allows us to invest more in creating an amazing customer experience. That’s what we aim for: better outcomes for customers, employees, and shareholders alike.

There’s so much more to explore, but I hope this gives you a glimpse into how PYXiS can help software businesses thrive over the long term. If this resonates with you, I’d love to start a conversation. Connect with us to learn more about how PYXiS can support your business.