How to build a massive SaaS business selling to SMEs
"Churn is the single most important metric in any recurring revenue business. That applies to enterprise, consumer, and SME", said Mark MacLeod, Coach, Advisor and Investor, on SaaStock's Dublin stage.
Just take a cohort of 100K of monthly recurring revenue, and look what happens to it over time at different churn rates.
If you're churning at 5% a month, that very quickly goes down to nothing.
Whereas on the flip side, if you can have modest negative revenue churn, then you have a growing annuity.
Watch now:
That cohort just keeps growing in value in time, and that is when investors back up the Brinks truck and ask you how much money they can give you, because you have a really valuable asset.
Find out how to build a massive SaaS business selling to SMEs, from Mark. Watch the full video on our YouTube channel. You can also read the full transcript of this video on our blog.