Dear SaaStr:  How Do You Know in the Early Days if You Really Have Product-Market Fit?

A few signs you finally have a “real company” in SaaS:

  • Your customer count is doubling monthly, even from a small base
  • You are getting word-of-mouth customers from existing customers
  • You are growing > 100% at $500k+ in ARR
  • Enterprise prospects and potential customers are finding you
  • You have more leads than you can call back

Those are all good signs.

In the end, if you hit $1m ARR and are growing < 100% annually in this day-and-age, you don’t quite have product-market fit.

But the flip side is the Cloud is just too big, and growing too quickly, to not grow 100% by $1m or so ARR >if< you really have something of true and differentiated value in your market.

Although you may be close if your customers are happy.  Growing, say, 40% at $1m ARR with high NPS is usually a sign you are solving a problem for your customers.  Just not quite a big enough one yet.  So figure out what the minimum feature set to truly solve their problem is … and watch growth accelerate.

A related post here: When You Fall Out of Product-Market Fit | SaaStr

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