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Dear SaaStr: Does Bootstrapping Through an Agency/Services Business Work?

SaaStr

Dear SaaStr: Does Bootstrapping Through an Agency/Services Business Work? But I think if you are thoughtful about it, using an agency/services business can be a viable way to bootstrap your way into a SaaS business — as long as you transition over fairly early to doing your SaaS business 100%.

Business 227
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7 Drivers in Building to a $7 Billion Company with 1Password CEO Jeff Shiner and 1Password Advisor Carilu Dietrich (Pod 556 + Video)

SaaStr

Growing your company to $7 billion is not a quick process. Along the way, there are key decisions and behaviors which drive the growth to multi-billion dollars. Jeff has led the growth of a remote, bootstrapped company over the past 16+ years of building 1Password. Profitability is power. Building a great product.

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Thinking of Being a VP at a Venture-Backed Startup? Think Twice

SaaStr

If the pressure to hit bigger numbers every quarter doesn’t seem fair, or what you want — don’t sign up for it: – Join a bigger, ideally public SaaS company – Join something profitable, or bootstrapped. To finally get a chance to do it their way. Hold your head high. – Don’t be a VP. Maybe more.

Startup 223
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Why The Era of Efficient Growth is Now: The 2023 VC State of the Market with SaaStr CEO and Founder Jason Lemkin (Podcast +Video)

SaaStr

In the ever-evolving landscape of SaaS, Venture Capital, Bootstrapping, and Valuations – understanding market trends and investment patterns is critical. Known for its inbound marketing software products, it has consistently reinvested profits back into the business to fuel sustainable growth.

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The Simple Reason Hiring is Slowing Way Down in SaaS, Just About Everywhere. Even While Growth Remains Strong.

SaaStr

For Monday, it’s a reaction to the public markets wanting everyone to get more profitable, sooner. In fact, I have a rule for most startups that have a decent amount of funding, and really, for most bootstrapped companies at scale. Just fund it with half of your ARR growth. It’s a natural, quick reaction.

Headcount 210
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The State of SaaS – Global Data Trends from 1000+ Companies with Capchase Co-Founder/CEO Miguel Fernandez and 01 Advisors VP Kristen Clifford (Video)

SaaStr

Capchase’s dataset is comprised of roughly half bootstrapped companies and half VC-backed companies, so there will be some differences in benchmarking from what you see from the VC firms. One, when you have really high gross margins, your cost base actually increases much slower than your revenue base.

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To Really Scale, You Need $1M on Your Balance Sheet for Every $2M in ARR

SaaStr

The sales-driven customers are very profitable on a CAC basis, since their lead cost is $0, and so the ‘Magic Number’ or CAC/CLTV ratio is very favorable. “My CEO Told Me To Stop Selling So Much” Recently, I met with a sales leader I’ve known for years, and he told me The Most Curious Story. Balance Sheet Rule.”

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