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The Top 10 Things to Know Before Starting a SaaS Company

SaaStr

Dear SaaStr: What Are The Top 10 Things to Know Before Starting a SaaS Company? It takes 7–10 Years in SaaS to Get Anywhere. And 99% of SaaS companies will need 7–10 years to get to $100m ARR and beyond. You have to hire so many functions in SaaS – VPS, VPM, VPP, VPCS, VPE, etc. The SaaS Year of Hell.

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The Top 5 Things Everyone Should Know Before Starting a SaaS Company

SaaStr

One fundamental question asked was What Everyone Should Know Before Starting a SaaS Company. More here: If You’re Going to Do a SaaS Start-Up … You Have to Give it 24 Months. The Cavalry is Coming and here: The SaaS Year of Hell. It takes 7–10 Years in SaaS to Get Anywhere. You have to hire so many functions in SaaS?—?VPS,

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Dear SaaStr: I’m Bootstrapped. How Can I Afford to Hire Any VPs?

SaaStr

But by $10m ARR, bootstrapped SaaS companies mint enough cash to fund all these hires. 10m ARR bootstrapped companies start to converge and look a lot like $10m ARR venutre-backed SaaS companies. If you are bootstrapped in SaaS, you won’t have enough capital to build your management team as fast you need to for quite a while.

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Dear SaaStr: When should a bootstrapped startup hire a (CFO, COO, CMO)?

SaaStr

ARR VPCS: $2m ARR VPP: $3m-$4m ARR VPE: $5m-$6m ARR CFO: $10m ARR COO: $20m ARR. And by $10m ARR, bootstrapped SaaS companies generally generate enough cash to fund all these hires at almost the same pace as venture-backed ones. 10m ARR bootstrapped companies start to converge and look a lot like $10m ARR venture-backed SaaS companies.

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Do Your VPs Have a Mentor Budget?

SaaStr

One thing all of us that have been doing SaaS for a while have learned is that, back in the day, we didn’t do a good enough job of specialization, especially in sales. But what would be even better would be to also have an experienced peer that is a true VPS or VPM or VPCS. who were looking to move to VP. They still do fine.

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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. But it’s a good question and I thought it might make sense to set out an Ideal VP Hiring Plan for Most SaaS Companies. I’ve worked closely with 26+ SaaS start-ups and founded a few. IME, rough order to make hires in: VPM: $0.2m

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SaaStr Annual Prices Go Up $400 (!) Tomorrow!! And Check Out Our 300+ Amazing Speakers!!

SaaStr

CIOs of Adobe, Zendesk, Nutanix, Ciena, Google Cloud and 200+ more! CROs and VPS and VPCS and CMOs from Slack, ServiceNow, Canva, Culture Amp, Procore, FinancialForce and more! 1,000+ VCs including from Sequoia, Bessemer, Emergence, Andressen, Point9, Cowboy Ventures, Upfront, Craft and every leading SaaS and Cloud firm!