Substack 8 Hard Truths Scaling SaaS from $100K to $2M ARR
Scaling SaaS from $100K to $2M ARR: What No One Warns You About
Most SaaS journeys are either about launching your MVP or chasing the unicorn dream with VC money. But there’s a quieter, harder chapter in between—going from $100K to $2M ARR.
It’s not glamorous. It’s not often talked about. But it’s where most SaaS startups hit a wall.
This post is a reflection on that in-between zone—drawing from conversations with 50+ SaaS founders and patterns I’ve seen across breakout companies like Notion, Calendly, and Loom.
Here are the 8 hard truths that don’t show up in playbooks:
1. Revenue Doesn’t Equal Product-Market Fit
Just because someone pays doesn’t mean your product has true traction. Real PMF shows up when users stick around, tell others, and keep coming back.
2. Scaling Before You’re Ready Can Break You
If your foundation is shaky, growth magnifies the cracks—burning cash, hurting morale, and leading to high churn.
3. Sales Is Your Best Feedback Loop
Forget pushy tactics. Founders need to sell first—not to close fast, but to understand why deals close or stall.
4. Don’t Hire Blind
Only hire when you can confidently say, “This role will directly grow our ARR.” Anything less = wasted time and budget.
5. Focus Beats Opportunity
Chasing a broad market sounds tempting. But starting with one clear ICP (ideal customer profile) builds momentum. Think Airbnb: airbeds first.
6. Founders Must Drive Focus
Your #1 job? Say no to distractions. Reinforce the mission daily. Strategy isn’t a slide—it’s repetition under pressure.
7. Early Channels Fade
SEO, content, outbound—they all plateau. Don’t panic. Layer your channels instead of chasing shiny new ones.
8. Ask Why, Not Just What
If something works, dig into why. Does SEO convert because of intent? Topic depth? Backlinks? Know the edge. Then sharpen it.
A strategic buyer journey blueprint: Aligning solutions, decisions, and success metrics to address real challenges and effectively influence perspective.
I’m not here to sell you anything. Just wanted to put these truths out there for those of us building in the messy middle.
If you've lived through this stretch (or are in it), I’d love to hear what hit you hardest.