3 ms·
It's unlikely you'll be able to sell at a reasonable multiple (beyond 1x-2x ARR) unless your buyer thinks they can turn the company around. If you're not willin
by pdog 10y ago
It's unlikely you'll be able to sell at a reasonable multiple (beyond 1x-2x ARR) unless your buyer thinks they can turn the company around. If you're not willing to double down and figure out how to a) reduce monthly churn to less than 1% and b) grow revenue by at least 5% per month (after churn), you're much better off putting the company in SaaS maintenance mode, eliminating new development, downsizing the company to the bare minimum, and earning $30k per month with a 70%-90%+ profit margin while customers are still happy.
- just_to_ask_sam 10y agoThanks for your input, it makes a lot of sense. However, I'm worried reducing churn to less than 1% is very very hard (I don't know if you've ran a SaaS with 1% churn – It's not as common), and often requires product changes, which may impact overall growth and cause even more churn.