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At Even $50k in MRR, Running Out of Money Is No Longer an Excuse
- Getting to the first $1m-$1.5m in ARR for startups is a challenge. At around $50k monthly recurring revenue (MRR) startups are caught with not enough revenue to make it, but too much revenue to quit.
- At $50k MRR, startups can pay for a couple of engineers and sales employees and a crummy office, but not much else. It's important to take a deep breath and settle in at this point.
- It's recommended to upgrade one position, such as hiring one great sales rep or one amazing engineer. Don't try to fix everything, just one core position to upgrade.
- Don't listen to any VC negativity or doubts. If startups get to $1.5m or $2m in ARR, growing 8-10% a month in a good space, they will be successful.
- To achieve success, startups should drive upmarket by doubling pricing for customers. If bigger customers are wanting to buy more, don't lose the confidence to ask for more money. Spending more time with customers is important for startups to learn how to grow faster.
- At $50k MRR, there is zero excuse to fail, so the talk about optionality is banned. The best SaaS companies scale faster than ever today, but product-market fit is harder to achieve than ever.
- Founders should never blame VCs for running out of money. It is the founders' runway, so they should not waste it. Founders should never expect someone to extend it for them.
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