SaaS Startups

What Everyone Should Know Before Starting a SaaS Company

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Jason Lemkin

Recently we did a great AMA-style “Quora Session”.  You can see the whole list of questions and answers here.

One fundamental question asked was What Everyone Should Know Before Starting a SaaS Company.  I think we’ve hit the core things on SaaStr over the years, and we’ve added more structure in the new SaaStr Academy … but this was a good chance to pull together perhaps the 5 most key things to know IMHO/IME.

The top 5, with links to the related posts:

  • You have to love, or at least commit to, recruiting constantly. You have to hire so many functions in SaaS — VPS, VPM, VPP, VPCS, VPE, etc. If you’re not willing to constantly recruit cross-functionality … you’ll never attract the talent. True in B2C too of course. But the founders and CEOs need to attract even more types of managers, earlier, in SaaS. More here: Post-Traction, You Need to Spend 20% of Your Time Recruiting
  • It actually never gets easier. Every month, the Net New Revenue dial goes back to $0. But. You do get better. Much better. You may not be great at all that much at $500k in MRR. You’ll be great at so much at $20m ARR. More here:SaaS Start-Ups: Buck Up — It Really Does Get Easier.
Published on May 29, 2016
  • Andrew Grant

    I’m considering creating my own SaaS company. Do I need a business plan for it? I’ve found this service by accident – https://www.ogscapital.com/article/saas-business-plan . What do you think, should I use this service or try to cope with a business plan under my own steam? Thanks in advance:)

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