Avoiding a Scalability Crisis While Growing Your Business

Growth in the SaaS market has been incredible in the past five years. Zenefits, which provides human resources software, went from $1 million to $10 million in revenue in six months. GuideSpark grew from $1.5 million to $20 million in two years with its employee communications solutions. Companies such as New Relic and Optimizely – application performance monitoring and customer experience optimization, respectively – have topped $100 million.1 Successful companies in this industry are scaling faster than ever. And they must do so, because without strong growth, the chances of long-term, sustainable success are not very good.

According to McKinsey & Company, “supergrowers” – software and online services companies whose growth was greater than 60 percent when they reached $100 million in revenues – were eight times more likely than stallers (less than 20 percent CAGR) to grow from $100 million to $1 billion and three times more likely to do so than growers (between 20 and 60 percent CAGR).

Avoiding a Scalability Crisis While Growing Your Business