Doubling revenue with one extra sale per month

It’s common knowledge that growth is key to startup success, and of course the goal is increasing growth rates and exponential growth. But, especially while you’re still figuring things out in the early stages of a company, it’s staggering how much impact any increase in growth can make. Here’s a simple example showing how powerful this can be for subscription businesses.

This startup is launching a brand new $1k MRR product in January and has figured out how to grow by 5 users per month.

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Not bad, reaching $55k MRR by the end of the year.

But what if this company could figure out how to increase that growth number, increasing its subscriber growth rate by just one additional sale every month?

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Yes, that’s right, by the end of the year the company will have DOUBLED their recurring revenue (to $110K MRR) compared to making 5 sales per month. Which is amazing impact right there. But let’s take things one step further. After a year, the company figures out the product and sales/marketing engine, and starts growing at 20% per month. By the end of the year two, that one extra sale per month increase in the early days is the difference between being a $5m vs $10M ARR company. So never underestimate the impact of even the smallest incremental growth. Because SaaS compounds.

You can try this out with your own numbers using this live Opstarts example model. If you want to save and compare different plans like we did in the example, just click the button in the top right to start a trial account.

Questions about how to model your particular scenario? You can reach us at [email protected] or @opstarts on Twitter. We’d love to talk!

 

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