SaaStr · 2022-06-13
· 1451d
Why Absolute Churn and Sales Cycles Shouldn't Obsess Early-Stage SaaS Founders
Jason Lemkin argues that while churn and sales cycle metrics should be tracked, early-stage SaaS companies (pre-$1-2M ARR) should not obsess over them as strategic priorities. Instead, founders should focus on customer acquisition, utilization, and hiring great leaders who will naturally optimize these metrics as the business scales.
Metrics in this report
Business Journey Duration
7-10years
typical
SaaS company maturation timeline
Target ARR Before Obsessing Over Churn
1-2M
minimum
SaaS companies starting to focus strategically on churn as metric
Typical Sales Cycle Duration by Deal Value
1 week to 18 monthstimeframe
range
$20/month to $250k+ deals