SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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This is because they have to invest heavily upfront to acquire the customer, but recover the profits from that investment over a long period of time. The faster the business decides to grow, the worse the losses become. Many investors/board members have a problem understanding this, and want to hit the brakes at precisely the moment when they should be hitting the accelerator.

In many SaaS businesses, this also translates into a cash flow problem, as they may only be able to get the customer to pay them month by month.

More Growth Strategy Stats

47% of millennials want to work at diverse companies, according to a recent study.

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

How To Make Pricing A Constant Process In Your Organization

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

A 1% increase in pricing strategy yields an average 11% increase in profit