Sam Parr  ⚪️

of course

you can quit if you don't have something. but product-market fit is much harder than anyone thinks. if you can sell $1m of anything, and you are committed and can recruit a good team, you can sell $10m of it.

Is the same for $10m to $100m?

There are *many* companies who get to $10m, and never stop trying, and don’t get to $100M. Not judging! More about mathematics, eg whether get to negative new churn and market dynamics.

I'm confused by Jason L's reply. He's saying if you can do $1m, you can do $10m. And if you can do $10m, and you can recruit, you can do $100m?

No, $1-10 is different than 10-100. The reason is, different things are required. Many niches are big enough for X0M but not 100M revenue. Also churn of (say) 2%/mo is fine at $10M but you can’t mathematically get to $100M without internal growth too.

You can do the math in a spreadsheet, and you’ll find that a company producing new MRR growth linearly at 2% cancels and no internal growth will slow down top line growth and eventually stop growing. This is what I mean.

If you talk to a VC who has a portfolio of such companies, they’ll have multiple (say) $20-$30M ARR co’s that aren’t growing fast enough to reach $100M for every one that makes it to $100M. (I’ll bet JL will agree!)