4 ms·
For reference $2mm arr is $40k revenue per person per month. A hypothetical 75% margin means $30k margin per person per month. Very impressive growth and 100%
by soared 5y ago
For reference $2mm arr is $40k revenue per person per month. A hypothetical 75% margin means $30k margin per person per month.
Very impressive growth and 100% something you and a couple people could live off of. It is not a moonshot tech company/etc though, so if you’re looking to build something big - these are not lessons you should follow.
Spending money on advertising, hiring 1 salesperson, etc would drive a lot more revenue and enable them to scale. That is likely not their goal. I very much preferred working for companies who were highly profitable and didn’t try to outgrow themselves, compared to the opposite.
- plehoux 5y agoAccelerating growth is definitely on our radar. We took a different road up to this point, but I expect our future to be more similar to a regular tech business now that we're set on solid ground.
- amirhirsch 5y agoHow much of your growth is from existing customers versus new customers?
- plehoux 5y agoExisting customers > New customers. Wrote about this there: https://missiveapp.com/blog/on-being-a-tiny-team https://missiveapp.com/blog/on-being-a-tiny-team
- amirhirsch 5y agoThanks for sharing and congratulations on the milestone! You are going to grow like crazy when you throw marketing and sales behind new customer on-boarding. If you find that you are growth limited by cash-flow, you are also in a great position to set your own terms for valuation.
- bb88 5y agoWhat are you doing to prevent competitors? It doesn't look like you have a very strong moat, and it looks like something MS Teams could copy tomorrow. I don't always agree that VC funded hypergrowth is good, but a well funded competitor in a crowded space will eat your lunch.