Reaching a $100K MRR within 12-18 months of a product launch in a B2B SaaS seems to be the ideal growth rate recommended by most investors. How can founders structure their startup, product, and sales before launching to hit those numbers?

While that would be great, it’s not really that important.

What’s far more important is getting to $100k before you get too tired or run out of money — and then growing quickly thereafter.

The best SaaS companies scale from $1m ARR (roughly $100k in MRR) to $10m in 6 quarters or less.

But it doesn’t really matter how long it takes you to get to product-market fit and Initial Traction. That “initial launch” may not even be a truly sellable product yet. It may take you another 6 months of iteration just to figure that out, and get your content marketing / outbound / whatever engine going.

Put differently, rarely is the path from $0 to $1m in ARR linear. But after that, it usually becomes much more predictable in SaaS.

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Published on September 22, 2017

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