What will happen to your MRR (Monthly Recurring Revenue) if your business continues as it is today? What will happen if your metrics change? We created a Google spreadsheet to visualise SaaS business metrics and their impact on MRR.
Once you type in your basic SaaS metrics, you will get the MRR growth chart. For eg, MRR will grow from $25k to $72k within 6 months if your current metrics are 500 customers at $50 and 5% churn with 10,000 monthly visitors, growing 10% a month, with 10% conversion rates from visitors to leads (trial accounts) and 10% leads to customers (and all rates increasing 2% per month).
That's of course just an example. Get your copy of the model, and play with your metrics!
The metrics are to be typed in the 'Scenarios' sheet, using the green background cells.
Play with it not only to understand your compounded growth potential, but also to understand how each metric impacts your SaaS growth.
What if... your metrics will grow 2x (eg. what happens if your ARPA jumps from $50 to $100, and the other metrics continue to evolve as they are now)
What if... your metrics will grow 2x faster than they are today (eg. instead of having number of visitors growing at 10% a month, it jumps to 20% a month).
* The above scenarios are calculated in '2x impacts' and 'Better growth' sheets of the spreadsheet provided in this article. You can see all the details (and you can even update the scenarios hypothesis).
We have more models to be released soon. Let us know how you are using this one, the insights you gained from it and what you would like next.