Insight certainty 4/5 debate potential 2/5

SaaS startups should pivot to scale acquisition at $1M to $2M ARR

Don Breckenridge, Jr. · EP 449: SMB SaaS <3% Churn, $5M Raised, $200k MRR Helping SMB's Manage Relationships with Hatchbuck CEO Don Breckenridge · Oct 16, 2016 · at 16:34

Don Breckenridge, Jr., CEO of Hatchbuck, shares his mental model on early-stage SaaS development stages and when to focus on growth.

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“With these SaaS companies, you spend several years building the foundation, building the product, building the team, building everything. And then once you get to say one, two million dollars of M of AR, then you, then the goal is to grow and scale the business. Cause then all you have to focus, I mean, you have to focus on everything, improving everything, but you can put a lot more focus into customer acquisition.”

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More from Don Breckenridge, Jr.

Assertion Not checkable as stated
Average SMB SaaS monthly churn is between 3% and 7%
“In the SMB space, you'll see an average of three to seven percent.”
Don Breckenridge, Jr. Oct 16, 2016 ▶ 11:30 EP 449: SMB SaaS <3% Churn, $5M Raised, $200k MRR Helping SMB's Manage Relationships with Hatchbuck CEO Don Breckenridge
Disclosure
Hatchbuck CEO would instantly reject a $10M buyout offer from EIG
“No way.”
Don Breckenridge, Jr. Oct 16, 2016 ▶ 16:28 EP 449: SMB SaaS <3% Churn, $5M Raised, $200k MRR Helping SMB's Manage Relationships with Hatchbuck CEO Don Breckenridge
Assertion Not checkable as stated
Hatchbuck ARPU is just under $200 per month
“It's just under 200 dollars a month.”
Don Breckenridge, Jr. Oct 16, 2016 ▶ 3:57 EP 449: SMB SaaS <3% Churn, $5M Raised, $200k MRR Helping SMB's Manage Relationships with Hatchbuck CEO Don Breckenridge
Disclosure
Hatchbuck serves over 1,100 customers and 4,000 total users
“We've got over 4000, somewhere between 4045 hundred users on the system. And somewhere between the, probably about 1112 hundred customers on the system.”
Don Breckenridge, Jr. Oct 16, 2016 ▶ 6:04 EP 449: SMB SaaS <3% Churn, $5M Raised, $200k MRR Helping SMB's Manage Relationships with Hatchbuck CEO Don Breckenridge
Disclosure
Hatchbuck has raised over $5M in capital
“And then we've raised over five million since.”
Don Breckenridge, Jr. Oct 16, 2016 ▶ 7:08 EP 449: SMB SaaS <3% Churn, $5M Raised, $200k MRR Helping SMB's Manage Relationships with Hatchbuck CEO Don Breckenridge
Assertion Not checkable as stated
Hatchbuck generated just under $2M in 2015 revenue
“2015 just under two million.”
Don Breckenridge, Jr. Oct 16, 2016 ▶ 8:32 EP 449: SMB SaaS <3% Churn, $5M Raised, $200k MRR Helping SMB's Manage Relationships with Hatchbuck CEO Don Breckenridge
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