Hey there, I'm trying to build the financial plan for my SaaS, which is a simple website builder that is a relatively cheap B2B SaaS. The subscription plans are Basic ($14/mo or $112/yr) and Pro ($42/mo or $337/yr). These prices are within the market average [1].
I'm trying to find resources on how to build the financial plan. I'm having trouble getting the growth rate. It says that best-in-class SaaS startups usually have 7%-10% growth rate when starting out, and once they cross the $3M ARR milestone, growth settles around 6%-7% per month [2].
And my startup, that currently has 8 paying customers, with 10% month-over-month growth will have 11 new customers in the 12th month, which is ridiculous. I need in the first months after officially launching to double and triple my paying users count each month, but after a few months like this the numbers get too high and not realistic. So I'm starting at 300% monthly growth rate with 17%-20% decline each month, and when I'm playing with the numbers I get realistic numbers, so in the 12th month I have ~30% month-over-month growth rate, and 6%-9% after 18 months [3].
However, I'm having the feeling that I'm re-inventing the wheel here a little bit. I'm not a financial expert, and I'm sure that thousands of entrepreneurs have had this issue before, and therefore I'm searching for resources on that matter, whether it's videos, articles, actual Excel files, etc.
I would love this community's insights on this topic. Thanks!
[1] Market leaders pricing -
[2] Chartmogule 2023 report - https://chartmogul.com/reports/saas-growth-report/2023/#Monthly
[3] Growth rate -
I'm trying to find resources on how to build the financial plan. I'm having trouble getting the growth rate. It says that best-in-class SaaS startups usually have 7%-10% growth rate when starting out, and once they cross the $3M ARR milestone, growth settles around 6%-7% per month [2].
And my startup, that currently has 8 paying customers, with 10% month-over-month growth will have 11 new customers in the 12th month, which is ridiculous. I need in the first months after officially launching to double and triple my paying users count each month, but after a few months like this the numbers get too high and not realistic. So I'm starting at 300% monthly growth rate with 17%-20% decline each month, and when I'm playing with the numbers I get realistic numbers, so in the 12th month I have ~30% month-over-month growth rate, and 6%-9% after 18 months [3].
However, I'm having the feeling that I'm re-inventing the wheel here a little bit. I'm not a financial expert, and I'm sure that thousands of entrepreneurs have had this issue before, and therefore I'm searching for resources on that matter, whether it's videos, articles, actual Excel files, etc.
I would love this community's insights on this topic. Thanks!
[1] Market leaders pricing -
[2] Chartmogule 2023 report - https://chartmogul.com/reports/saas-growth-report/2023/#Monthly
[3] Growth rate -