“A goal properly set is halfway reached.” – Zig Ziglar
I always ask the Founders and Executives of the Software-as-a-Service (SaaS) companies – and other Entrepreneurs – that I work with this simple question:
“what’s your goal?”
Sometimes I phrase it like this:
“where do you want [your company] to be in a year?”
And far too often they just don’t know.
Sure, they might have an idea… they can sort of picture it. Or they have some revenue projections… but they don’t have a real goal that they can get behind and drive toward.
They don’t have something they can draw a line in the sand and say “that’s what we’re going to shoot for over the next year.”
One client I have just hit $1M Annual Run Rate (ARR, meaning he has, right now, about $88k in Monthly Recurring Revenue – or MRR – which, when multiplied by 12 gets you to $1M in Annual revenue).
His goal for next year is to 3x that… to hit $3M ARR!
Now that’s a specific goal and we’re working on a plan to get him there.
In addition to goals, I also ask SaaS founders & execs where they are right now – what are some of their key metrics – and most of the time they don’t know that either.
Sure, they might be able to find that stuff – their current MRR, Churn Rate, Customer Acquisition Costs, Growth rate, etc. – but they can’t generally recite those numbers to me… but they should be able to.
Those numbers – and a few others – are the vital signs of their company and the fact that they don’t know them – as they change every day – tells me they don’t really have a grasp on their business, or worse… they might even be hiding from the truth.
Look… if you have a big bank account that is getting larger every day, you watch it grow. But if you have a bank account that is getting smaller every day, you tend to avoid looking at it, even though it really needs your attention.
Companies where the leaders don’t know the vital signs of the company generally aren’t thriving!
So, if you don’t have a specific goal – a destination – and you don’t know where you are right now – your current location – how can you create a plan to get there? Imagine a navigation system that didn’t know where you are or where you were going? Useless, right?
And yet this is how far too many companies operate… no wonder they never reach their goals!
So,… what’s your goal?