Judging from the number of Facebook likes and retweets, as well as comments on Twitter and elsewhere, my last post resonated with quite a lot of people. Some people thought it was provocative though, and some chimed in with good feedback:
@hunterwalk building ANY business is hard
— Jonathan Abrams (@abrams) March 5, 2016
Therefore I thought it would be worth following up on the topic to make sure that my message is clear.
The provocative sentence, I think, was this one:
“Building a SaaS business with $1-2 million in ARR is not that hard and not that valuable.”
“Let me rephrase that. Starting a new company is always hard and most SaaS startups never get to $1-2 million in ARR. Every founder who accomplishes this deserves a huge amount of respect.”
… and tried to explain the real point I was trying to make in the next one:
“The point is that getting to $1-2 million in ARR probably has less predictive value concerning a company’s ability to get to true scale than most people think – or at least thought some years ago.”
2) Getting a SaaS company from 0 to $1-2M in ARR is hard. For the reasons mentioned in the original post, I think it has become significantly easier in the last 5-10 years but that doesn’t mean that it isn’t still very hard. Maybe a better way to put it would be “more likely” than “easier”.
In case it’s still not clear, maybe this funnel diagram helps to explain what I mean. 🙂