Why If You Can Get to $10m ARR, You Can Get To $300m ARR


This post is by Jason Lemkin from SaaStr


Click here to view on the original site: Original Post




Why If You Can Get to $10m ARR, You Can Get To $300m ARR.  Woah. That may sound controversial, or even silly.  VCs may mock this.  But hold on.  Let me prove it to you. If you can get to $10m ARR, with positive revenue retention, you can indeed get to $300m ARR.  In fact, the odds might even be seen as high. How can that be?  It’s just math.  Three factors combining together:
  • First, the overall market for SaaS continues to grow.  It will more than double over the next 5 years, and then likely double again.  So riding this wave alone should 2x your revenue, maybe even 4x it.
  • Second, you’ll like 5x your market share.  At $10m ARR, very few of us have even 1% market share of our truly addressable market.  Over the next 5 at least, and probably much faster, you’ll 5x that market share.
  • Third, you’ll find a way to 3x your average deal size over time.  Most of us do.  By selling to larger groups, by increasing pricing a smidge, by adding more value.  Even by $2m in ARR, you’ve probably already figured out a way to drive up deal size a little more.  You’ll keep figuring it out.
So … if you just keep doing what you doing well, keep the net churn negative, then wherever you are today, should grow 2 x 5 x 3.  That’s 30x. $10m ARR x 30 = $300m ARR. Sounds crazy.  But calmly do the math, and see if you believe.  At least believe its possible.  And then go long. It’s why all the Cloud leaders today are marching to $1B+ in ARR or have blown past it, from Zendesk to Twilio to Hubspot and more. I don’t know how long it will take.  I don’t know if you’ve built a big enough team.  But I do know that if you hit $10m ARR with 100%+ net revenue retention, and happy customers … well, it can be you, too.
SaaS eSignature Market: From $1 Million in 2006 to $1 Billion in 2018

  The post Why If You Can Get to $10m ARR, You Can Get To $300m ARR appeared first on SaaStr.

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Why If You Can Get to $10m ARR, You Can Get To $300m ARR


This post is by Jason Lemkin from SaaStr


Click here to view on the original site: Original Post




Why If You Can Get to $10m ARR, You Can Get To $300m ARR.  Woah. That may sound controversial, or even silly.  VCs may mock this.  But hold on.  Let me prove it to you. If you can get to $10m ARR, with positive revenue retention, you can indeed get to $300m ARR.  In fact, the odds might even be seen as high. How can that be?  It’s just math.  Three factors combining together:
  • First, the overall market for SaaS continues to grow.  It will more than double over the next 5 years, and then likely double again.  So riding this wave alone should 2x your revenue, maybe even 4x it.
  • Second, you’ll like 5x your market share.  At $10m ARR, very few of us have even 1% market share of our truly addressable market.  Over the next 5 Continue reading "Why If You Can Get to $10m ARR, You Can Get To $300m ARR"

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