What to Do If Your Business Decelerates | saastr

A little while back, I did what turned out to be a very popular piece:  If You Do Sell [Your Company] — Do it a Local Maximum.A wise friend of mine commented on it afterwards.   “You’re absolutely right.  Selling your company at a non-local maximum is incredibly frustrating.  But you know what’s 100x worse?  Decelerating.  Once a SaaS business decelerates, it becomes almost hopeless.  No one will buy you, fund you, or join you.”He certainly had a point.  The good thing about SaaS is the revenue recurs.  The bad news, is it always has to be recurring by a materially higher absolute amount each quarter, each year.  You can’t go from $4m ARR one year to just $5m ARR next.  You can’t go from $15m ARR one year and then $20m the next.  If this is the best you can do … then you’re on a slow and painful march to irrelevance and atrophy.But …

via What to Do If Your Business Decelerates | saastr.

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About Bob Warfield

Here's my bio: http://www.smoothspan.com/management.html
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