When Will Your SaaS Business Die?
Use the free tool below to find out how far your SaaS business has to go...
Your growth ceiling
Explaining Your Growth Ceiling
Your business will hit its growth wall in , roughly months from now.
At the growth wall, growth will slow dramatically, as you’ll have reached 75% of possible growth at your current growth and churn rates.
Your business will hit its growth ceiling in , which is months from today.
At the growth ceiling, you won’t be able to grow any more.
Your business won’t grow past customers and $ in recurring revenue.
(At your current growth and churn rates.)
Why does the growth ceiling occur?
As the total customer base of a SaaS business grows, a fixed percentage churn represents a larger and larger number of customers leaving every month. E.g. with a customer base of 1000, 5 percent is 50 customers, but at 10,000, 5 percent is 500 customers.
For most SaaS businesses, that monthly churn rate number will eventually equal the number of customers joining, making it a deadly point in the SaaS lifecycle.
Approaching the growth ceiling, the growth of the SaaS business will slow. Assuming no corrective action is taken, it will eventually stop altogether.