When do you know it is time to pivot your startup?
A few thoughts in SaaS:
- Product-market fit is precious. It’s far, far harder to achieve than you might think. So once you have 10 Unaffiliated Customers — we wary of pivoting. Instead, think about how to get to 20. Then 100. And how to increase your pricing and deal size so those 100 or 1000 customers generate enough revenue to pay the rent. More on this here:
- It often takes far longer to get real traction with a paid product than a free one. And “free” users don’t count in SaaS, not really. So budget more time. It will not only take you 7-10 years to build something big … but it may take you 12 months just to get a single paid customer. Or even longer. >> Budget 24 months to iterate and see if you can make it to Initial Traction in SaaS <<. Anything less just isn’t enough time. More on this here:
Here’s a great presentation from the ’17 SaaStr Annual on iterating, expanding, learning … but also staying committed:
Published on April 25, 2016