SaaS-Cash-Flow-Trough7
in conclusion
The main purpose of this blog post is to provide entrepreneurs who are considering SaaS and other recurring revenue businesses with a model they can use to understand the impact of a variety of different variables. It’s important not to look at the specific data I used to populate my example company, as this will vary greatly between different SaaS businesses.
How long does it take to break even?
What is the total investment required i.e. how big the trough is
How long does it take to recover your investment?
After the trough, how will the profitability of the enterprise philippines mobile database be over time?
What's Next: Part 2
In Part 1, I only discussed data for a single salesperson. In Part 2 , we’ll look at what happens when a business reaches the stage where it has a repeatable, scalable sales model and starts hiring multiple salespeople per month.
Cash flow when hiring two salespeople per month
Cash flow comparison when hiring one versus two salespeople per month
The impact of non-stop sales recruiting on revenue
Discussing the limits of growth
We will also look at the following additional analyses:
Ad Set: Targeting.