Going though a slow patch is one thing
We almost all go through one or two
Settling for slow growth is another
You never really come back from that one
— Jason ✨Be Kind✨ Lemkin 🇮🇱 (@jasonlk) December 31, 2022
During my time as CEO at Adobe Sign / EchoSign, I made a significant strategic error in Year 1. I set an ambitious goal of going from $0m to $2m in ARR within our first 12 months of business. These days, achieving such rapid growth is rare. Even today, reaching $2m from initial launch remains a challenge.
The failure to achieve this goal was not due to a faulty model— the model was solid. The mistake stemmed from a lack of knowledge about SaaS at the time, coupled with unwavering faith in the team’s past success. I believed we had the best team and would surely hit the target. However, by Day 365, we had only reached nearly $200k in ARR. While this was not insignificant, it was evident that we would not meet the $2m target. The realization of falling short led to financial concerns and internal strife within the team.
Feeling lost, I resorted to implementing micromilestones as a last-ditch effort. Since then, I’ve observed other leaders adopt this strategy successfully, especially during the initial stages of building a business. What exactly are micromilestones?
- A tangible milestone that can be achieved in the next 2-6 months, aligning with your annual revenue goals, yet abstracted from the long-term revenue objective by metric or timing, or both.
For our first micromilestone, I shifted focus from revenue to New Customers Per Week. The initial target was 1 New Customer Every Week, which took several months and 2 product releases to accomplish. Subsequently, we aimed for 1 New Customer a Day. Celebrating these achievements, no matter how small, breathed new life and motivation into the team.
