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How we built a $1M ARR SaaS startup

canny.io

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Re: How we built a $1M ARR SaaS startup

#101
This is inspiring and depressing to see (more inspiring). I've spent the last 4 years getting a bootsrapped saas off the ground. It's taken every ounce of my being to get us profitable, but we wouldn't be close to hitting 1 mil (USD) ARR for at least 2 more years.

Every year that passes I suspect it becomes more and more impossible to get anything off the ground without at least a little bit of funding. If I had my time again, I don't think I'd go bootstrapped. Seed funding seems to be a great compromise between bootstrapped and angel/VC. TinySeed are doing some great things on that front.

Props to you guys and gals for making it work! It looks like a great product and a great team.

Re: How we built a $1M ARR SaaS startup

#102
Congrats. My wife and I built our infosec biz which now has a team of 40 and self funds. A few thoughts on going significantly beyond $1MM in my experience:

North of 1m I started focusing more on brand marketing. Think Red Bull and creating a feeling around your brand, what space you occupy in people’s minds and why. This kind of marketing is hard to measure and becomes more feasible as your budget expands.

Consider getting an excellent HR consultant to deal with complex issues that will emerge as the team expands. You haven’t seen it all.

Get a kick ass law firm on your side. You’ll need them for day to day and not so day to day stuff like asserting your trademark rights. As execs, get friendly with a partner at the firm and try to do the occasional lunch. They’ll be an amazing source of network and a counselor when you get your first offer for acquisition.

Get a great firm of accountants, even if you do your own books. They’ll also be excellent advisors.

Try to promote internally and invest in your team with education allowances and subsidies. Once your business is humming, your existing people know the customer, product and culture. This has worked extremely well for us.

Avoid hiring a “seasoned executive” or manager. They bring little value, will only give you a sense of comfort and are very expensive.

Assemble a leadership team of trusted lieutenants and get good at trusting and delegating.

Learn as leaders (talking to the founders) that you aren’t one of the team anymore. You’ll learn this the first time you walk up to your crew at a conference as you see them happily chatting with each other, and as they see you they’ll stop and all eyes will turn to you. Then you’ll pretend you just came over to say hi and were going to sit somewhere else. And you’ll go sit somewhere else because you don’t want to interfere with the important team bonding that is happening.

Say no to your first few acquisition offers. You’re bootstrapped and cash flow positive which is lightning in a bottle. Congrats!! You can always say yes later.

Don’t feel insecure about just repeating the things that work, but at larger scale, all the way to 9 figures. Business is surprisingly basic.

Don’t take funding if you can avoid it. You’ll be amateurs entering the ring with prize fighters who negotiate funding deals every day and you’ll regret it on many levels. Focus the energy on growing that cash flow and use that for funding.

Build a war chest that’ll carry you for 6 months without layoffs if your revenue completely stops. This will take a few years.

Monitor your cashflow religiously and get good at predicting expected performance so that you can catch slow downs early and react soon. Early detection is key. When your revenue dips, don’t panic and make the hard calls fast.

Congrats again and you can DM me on Twitter @mmaunder if you have specific questions e.g want supplier recommendations.

Best of luck.

~Mark

Re: How we built a $1M ARR SaaS startup

#103
post #33

Earlier quoted context omitted.

We're back up now!

Which part of your infrastructure buckled? Any lessons learned?

The $10/mo lightsail instance our blog runs on couldn’t handle 300 concurrent readers so we upgraded it to a beefier one.

Re: How we built a $1M ARR SaaS startup

#104
post #10

Earlier quoted context omitted.

Thanks so much for being a customer! And yeah, it always feels bad to write that "we got lucky", as it isn't really that repeatable/helpful. But it's true.

Fun story: The lead artist/dancer of https://www.skyfirearts.com/ had had that dream for years, and that "first lucky break" came when (8-9 years ago) he was getting coffee and the guy behind him in line was the guy for Tesla Coils in the US, who then helped Skyfire get up and running. AFAICT, what's repeatable / helpful is a bit more nuance about "how to make luck": 1) Know what you want so you can recognize it when…

I'd say timing plays a huge role and can also be seen as luck.

The market is sometimes just not ready for something and knowing if your timing is right isn't obvious, nor even possible to determine in most cases imo

Re: How we built a $1M ARR SaaS startup

#105

Congrats. My wife and I built our infosec biz which now has a team of 40 and self funds. A few thoughts on going significantly beyond $1MM in my experience: North of 1m I started focusing more on brand marketing. Think Red Bull and creating a feeling around your brand, what space you occupy in people’s minds and why. This kind of marketing is hard to measure and becomes more feasible as your budget expands. Consider…

Mark, really appreciate you writing this! So much great advice, and in such an easily digestible format. I messaged you on Twitter.

Re: How we built a $1M ARR SaaS startup

#106
>"We launched in March 2017, so it took us just under 3.5 years to get to $1m ARR

We’re bootstrapped, meaning we’ve never taken any money from investors."

[...]

>What problem do you solve?

We help software companies build better products by doing a better job of collecting and understanding user feedback."

[...]

>"LESSON LEARNED

Be focused—don’t try to solve every problem for every business. Build an amazing product for a small group of people instead of a mediocre product for everyone."

Re: How we built a $1M ARR SaaS startup

#107

Earlier quoted context omitted.

I'll bite. I'm 37, a tech startup founder. I'm wary of ageism and I've long believed that not being ageist would allow us to hire smarter than competitors. However: - The amount of programmers grows exponentially. I've seen stats claiming it doubles every 5 years. - This means that at any time, 50% of the available workforce has - It also means there are simply way more programmers under 40 than over. If you randomly…

I'll add a few points as an over-40 developer/recruiter currently working for a startup: * By 40, they've probably already done the startup thing once or thrice, and many have been there, done that. They are also less motivated by startup stock options, having seen them evaporate personally. * By 40, they are more likely part of a family unit that values financial stability. * By 40, they are at their salary cap. The…

Where have they switched careers to and why?

Re: How we built a $1M ARR SaaS startup

#108

Earlier quoted context omitted.

I'll bite. I'm 37, a tech startup founder. I'm wary of ageism and I've long believed that not being ageist would allow us to hire smarter than competitors. However: - The amount of programmers grows exponentially. I've seen stats claiming it doubles every 5 years. - This means that at any time, 50% of the available workforce has - It also means there are simply way more programmers under 40 than over. If you randomly…

>> The amount of programmers grows exponentially. I've seen stats claiming it doubles every 5 years. The worst part about this is that the world doesn't need so many developers. It also doesn't need so many marketers and data scientists either. The jobs are being created artificially as part of the Federal Reserve Bank's job creation mandate and financed by fiat money printing. The economy of the past decade is a com…

So what do you suggest to do them

Re: How we built a $1M ARR SaaS startup

#109
post #103

Earlier quoted context omitted.

Which part of your infrastructure buckled? Any lessons learned?

The $10/mo lightsail instance our blog runs on couldn’t handle 300 concurrent readers so we upgraded it to a beefier one.

Just put that server behind cloudflare and max the caching on edge option :)

Re: How we built a $1M ARR SaaS startup

#110

I am not sure I understand product. What is it that Trello or JIRA cannot track that you are offering? I looked at the product and it appears like you can track which feedback (whether product or employee) is bubbling up based on popular vote. How do you offer to track users? Do you expect me to make my board public for collecting feedback or something else? BTW, you had a great milestone. As someone in infancy of bu…

I know canny from clickup. It's a public feedback forum where users can request or upvote features/bugs. Intuitive thing I found is that you get notified by email whenever features you upvoted for gets implemented.
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