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The Top 10 Things to Know Before Starting a SaaS Company

SaaStr

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. If you’re not willing to constantly recruit cross-functionality … you’ll never attract the talent. You’ll probably hire the wrong first VP of Sales. Everyone is.

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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 best ones find a way to recruit strong Directors and others under them with more experience than them. Even though they already did that before. ARR VPS: $1-$1.5m