There is a prevailing belief that the magicformula for early-stage tech startups hinges on how quickly they achieve $1 million in annual recurring revenue (ARR). Investors in SaaS companies, in particular, are very guilty of pushing this or its equally loaded corollary, "When will you sign your first six-figure deal?"
But in the rush toward these numbers, too many startups lose sight of their primary intent: These metrics are supposed to be an indicator of product/market fit. We've seen companies reach $1 million in ARR in less than a year, yet not have enough market momentum to get their next million easily. We've seen early-stage companies so concerned about getting those first sales, they don't validate the market and if they're building the right product. We've also watched a focus on new logos make companies forget about keeping existing customers happy, introducing unexpectedly high churn — something startups can't afford...
https://techcrunch.com/2018/12/27/why-your-startup-shouldnt-rush-to-1-million-in-revenue/
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by Idham Azhari
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