SaaS founders are an awesome bunch. We're "Get Stuff Done" people used to hacking our way to success all on our own. Yet, because of this proactive default we can have massive blindspots.
We all saw this recently with Zirtual's collapse due to the fact that they didn't know their financial metrics precisely, resulting in too much burn and not enough revenue to cover costs, let alone grow. As Founder and CEO Kate Donovan put it, "[our] numbers were just completely f***ed."
We all may laugh or gossip about Zirtual's demise, but how confident are you in your own financial SaaS metric calculations? How about when I tell you that we found 2 out of 5 SaaS companies with greater than $10M ARR were incorrectly calculating something as seemingly simple as MRR?
This article walks through how when it comes to your SaaS financial metrics you need the precision of a specialist. The math gets too complicated, and the stakes for getting them right are too high.