by Adrian Valenzuela. Published on 29 Sep 2021
When it comes to startups, many founders only focus on the importance of setting up the business correctly - having the right product-market fit, the right idea, team, and so on. And while that is clearly critical, the biggest challenge most startups face is scaling profitably.
Even at $1M revenue, it's hard to scale at a reasonable pace without funding - and that goes for all types of companies, SaaS and tech businesses included. The reason why is simple. More often than not, startups at this stage are barely at a breakeven point, meaning significant sales and marketing efforts to scale will set them back beyond their current resources.
The point here is, every startup should have funding in mind from the get-go, making the right connections and developing their business in a way that attracts relevant, high-influence investors and VC funds early on. If founders make this a priority from day one, they're much less likely to see themselves stuck at a certain size, unable to break the $5M or $10M mark.
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