Project future revenue across multiple growth scenarios. Plan conservative, base, and optimistic cases to prepare your business for any outcome.
Successful businesses plan for three futures: conservative (what if growth slows?), base (expected trajectory), and optimistic (what if we execute perfectly?). Scenario planning removes surprise and ensures you have contingency plans ready before you need them.
Top SaaS companies: 50–100%+ YoY. Good: 25–50%. Sustainable: 15–25%. Below 10% requires strategic reassessment or market pivot.
Growth Rate % + Profit Margin % should exceed 40 for healthy SaaS. A 25% growth rate + 20% margin = 45 — a strong business by this metric.
High revenue growth with negative margins is only sustainable with VC funding. For bootstrapped businesses, prioritize profitable growth over pure top-line expansion.
25% annual growth compounds: $500k → $1.5M in 5 years. 50% growth: $500k → $3.8M. The gap between scenarios widens dramatically over time.