SaaS-economics
The model shows that the worst loss is $190,000 per month, and the first profit comes after 21 months.
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This tells us that the size of the SaaS cash flow malaysia mobile database trough is $2.6 million and the worst point of negative cash flow will occur in month 21. The chart also tells us that it will take 32 months to recover the total investment. This is probably the key chart in the entire model.
It’s also useful to see how MRR monthly recurring revenue grows as we hire two salespeople each month:
saas-economics11
The graph on the left shows that MRR will grow to approximately $1.3 million in 24 months.
The chart on the right is a very important metric for SaaS companies to track. This shows how much MRR has grown month over month. This is essentially the new bookings that occurred during the month minus the churn. If you run a SaaS company, this chart will tell you if you are continuing to grow your bookings. Since we are constantly adding new salespeople and increasing our lead flow, it is no surprise that this chart continues to go up month over month.