{"id":3606,"date":"2019-12-09T11:40:00","date_gmt":"2019-12-09T06:10:00","guid":{"rendered":"https:\/\/pitch.link\/blog\/?p=3606"},"modified":"2019-12-21T11:42:57","modified_gmt":"2019-12-21T06:12:57","slug":"10k-arr-today-800k-enterprise-value-in-3-years","status":"publish","type":"post","link":"https:\/\/pitch.link\/blog\/10k-arr-today-800k-enterprise-value-in-3-years\/","title":{"rendered":"10K ARR today = 800k Enterprise value in 3 years"},"content":{"rendered":"\n

That\u2019s the math that David Cummings wrote about in his post of November 23rd. It is quite simple. If you have $1m of new recurring revenue you are likely looking at a 800k gross margin. Invest half in Marketing and half in hiring two sales people. They will add $1m in new recurring revenue. Rinse and repeat. <\/p>\n\n\n\n\n\n\n\n

By the 3rd year it will add $4M in new annual recurring revenue and a pace would be set. The $1M new ARR is now $8M ARR which will potentially add $40M – $80M in Enterprise value. <\/p>\n\n\n\n

\"\"
Photo by NeONBRAND on Unsplash<\/figcaption><\/figure><\/div>\n\n\n\n

You do not need to start with $1M new ARR. Even $10K in new ARR can help add $800K to your enterprise value. Collect every dollar you legitimately can. Else you may be leaving a lot behind. <\/p>\n\n\n\n

Where I learnt this #343 <\/p>\n\n\n\n

Compounding Revenue\u2019s Value in the\u00a0Future <\/p>\n\n\n\n

https:\/\/davidcummings.org\/2019\/11\/23\/compounding-revenues-value-in-the-future<\/a>\/<\/p>\n","protected":false},"excerpt":{"rendered":"

That\u2019s the math that David Cummings wrote about in his post of November 23rd. It is quite simple. If you have $1m of new recurring revenue you are likely looking at a 800k gross margin. Invest half in Marketing and half in hiring two sales people. They will add $1m in new recurring revenue. Rinse […]<\/p>\n<\/p>

Continue Reading<\/span><\/i><\/a><\/div>","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"ub_ctt_via":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[69,83],"tags":[70,81,200],"class_list":["post-3606","post","type-post","status-publish","format-standard","hentry","category-what-i-learnt-today","category-startup","tag-alwayslearning","tag-startups","tag-revenue"],"aioseo_notices":[],"featured_image_src":null,"author_info":{"display_name":"Subhanjan Sarkar","author_link":"https:\/\/pitch.link\/blog\/author\/subhanjan\/"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paX7jg-Wa","_links":{"self":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/3606"}],"collection":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/comments?post=3606"}],"version-history":[{"count":0,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/3606\/revisions"}],"wp:attachment":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/media?parent=3606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/categories?post=3606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/tags?post=3606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}