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While this is generally true for most companies, it’s particularly true for SaaS businesses, which invest heavily in product development, sales, and marketing upfront and get payments from customers over a delayed period of time, usually several years. If you’re setting yourself up for hypergrowth, the margin for error is very thin.
While this is generally true for most companies, it’s particularly true for SaaS businesses, which invest heavily in product development, sales, and marketing upfront and get payments from customers over a delayed period of time, usually several years. If you’re setting yourself up for hypergrowth, the margin for error is very thin.
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Did you know: For every 1% increase in revenue retention, a SaaS company’s valuation increases by 12% after five years? It’s especially great if you get payment up front and then know that customer is profitable from that point on. . So, it all depends on your business and how you decide to structure your team. Too many even.
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