What does Jason M. Lemkin want everyone to know when starting a SaaS company? originally appeared on Quora - the knowledge sharing network where compelling questions are answered by people with unique insights.
I've said each before individually, but let me throw 'em together:
- It may well take 24 months to get to true product-market fit and Initial Traction. If you budget any less, you probably will fail. This isn't B2C and virality won't accelerate the process. More here:
- You will almost die somewhere between $2m-$10m ARR because there is too much to do and not enough people to do it. You will have a Year From Hell here. Finally you have great customers and traction -- but you can't afford to hire all the people you need to meet their needs. This is actually the most exhausting phase. More here: and here:
- It takes 7-10 Years in SaaS to Get Anywhere. Even outliers like Slack, really, started much earlier. And 99% of SaaS companies will need 7-10 years to get to $100m ARR and beyond. If you can't do the time, don't do the startup. More here:
- You have to love, or at least commit to, recruiting constantly. You have to hire so many functions in SaaS - VPS, VPM, VPP, VPCS, VPE, etc. If you're not willing to constantly recruit cross-functionality ... you'll never attract the talent. True in B2C too of course. But the founders and CEOs need to attract even more types of managers, earlier, in SaaS. More here:
- It actually never gets easier. Every month, the Net New Revenue dial goes back to $0. But. You do get better. Much better. You may not be great at all that much at $500k in MRR. You'll be great at so much at $20m ARR. More here: