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The Top 10 Things to Know Before Starting a SaaS Company

SaaStr

You really need a great CTO, not just a good business team. A mediocre tech team, a part-time CTO, or even just a decent CTO just doesn’t get you there. You have to love, or at least commit to, recruiting constantly. You have to hire so many functions in SaaS – VPS, VPM, VPP, VPCS, VPE, etc.

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What Order Should You Hire Your Management Team In?

SaaStr

ARR VPCS: $2m ARR VPP: $3m-$4m ARR VPE: $5m-$6m ARR CFO: $10m ARR COO: $20m ARR. More on that here and a great video discussion below: You’ll probably be ready for your first VP of Sales by $1m in ARR. Ideally, have your VP of Sales on board in time to hire reps 3-300. You’ll need a VP of Engineering by $8m-$10m ARR.

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Bet On Up-and-Comers. But Add One Veteran For Each $10m ARR.

SaaStr

Often folks they convince to once again be a VP of Eng or VP of Sales. The sales leader that did well, but their startup still didn’t quite make it. The sales leader that did well, but their startup still didn’t quite make it. That CTO that doesn’t quite have the traditional background.