SaaStr · 2012-11-16
· 4947d
4 Good Reasons Not to Start a SaaS Start-Up
Jason Lemkin argues that starting a SaaS company from scratch is rarely the optimal career choice unless it's a calling, despite the glamorization of entrepreneurship. He presents four reasons against founding: high failure rates with no credit, poor risk-adjusted economics compared to joining established tech companies, difficulty assembling great teams, and extreme personal hardship. He advocates for joining existing successful startups or established companies instead.
Metrics in this report
First Year Revenue
$100,000,000$
historical inflation-adjusted
Lotus 1-2-3 first year performance
Lifestyle SaaS Business Revenue
$300,000$
annual
Attainable single-person SaaS business
Promissory Note Amount
$750,000$
personal example
Full recourse note signed by author for payroll funding
Success Rate (implied)
0.00001%%
estimated
SaaS startup success probability