Does it get progressively easier or harder to scale SaaS as your company grows?

My Post (8).pngGenerally, it gets easier to grow at a “good”/modest rate at you scale, but harder to grow at an outsize rate.

Why?

Once you cross $5m-$10m in ARR, then usually:

  • You have a brand. At least, you have a mini-brand in your niche. And that brand generates leads organically, and fairly low-cost leads. This helps a lot.
  • Renewals make things more efficient. It’s much cheaper to renew a customer than to acquire one.
  • Account expansion starts to work. The best mid-market and enterprise SaaS companies grow their accounts 120%-160% as a cohort, inclusive of churn. But, this takes a while to kick in. A couple of years, really.
  • It’s much more predictable. After $10m ARR or so, you start to have a good sense, within a range, of how you are going to do this quarter and this year.
  • Your infrastructure usually is stronger. From your technical infrastructure and platform, to your financial controls and recruiting processes … you have more people, process and technologies to scale. – Read more

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