What were some of your expectations when you started your first business?

This post is by Jason Lemkin from SaaStr

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My biggest mistake, the second time, was setting insane Year 1 projections. I had such a great set of co-founders, I projected we’d hit $2m ARR in our first year. That was back in 2006 in SaaS! And for real. I was 100% sure we’d hit it. We probably hit $0.2m instead. It was so hard on the team, one of us quit. We almost ran out of money. Things we rough. But, I screwed up. Going from no product to $200k in ARR in SaaS in 2006 was pretty awesome, actually. Not A+ performance, but not a bad first year. And we closed Dell, Comcast, BT, GE, and other leading customers. In year 1. Not for huge contracts, but for real. So I think I learned a crazy plan is good. But an insane one, you have to be thoughtful about how you use it. And that even
world’s best-built model — and mine was pretty good, really — can harm you if the inputs and assumptions are highly improbable. At least, do more validation. More research. We had a great team. But I needed at least 1 great mentor, too. To tell me $2m ARR in Year 1 wasn’t just ambitious, but borderline insane for a new product in a new market in a new category in 2006 in SaaS. And to at least have a “base plan” that was less insane. A bit more here: If You’re Going to Do a SaaS Start-Up … You Have to Give it 24 Months | SaaStr View original question on quora The post What were some of your expectations when you started your first business? appeared first on SaaStr.

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