Why You Should Start a SaaS

Alex Becker started Hyros (his software company) in 2019

in January of this year, he sold the company for $110,000,000

yes, 110 million dollars, in 4 years

now, Becker had years of entrepreneurship under his belt before and that is not a normal example, AT ALL.

But, SaaS companies see crazy exit multipliers (the multiplier on annual profit or monthly recurring revenue when you sell your business) that other types of companies simply don’t see

for example, SaaS companies often see a 5-10x multiplier on annual profit, so if your software company profits 100k per year, it can be sold for $500k conservatively

in other niches, like ecom or agency, you’d be lucky to get a 1-3x multiplier

so that’s reason #1 to start a SaaS, crazy exit multiples.

The 2nd reason is: Higher profit margins than agency/ecom

since you’re not fulfilling a service via human labor like an agency, you have less overhead, the software IS the fulfillment that the customer is paying for

Reason #3 is if done properly it is a sticky business model which means it’s recession proof

sticky means that your customers NEED your software to run their business or improve their life, so no matter what the economy is doing, they won’t cancel their subscription

now that I’ve told you why you should start a SaaS, go to my Youtube to learn how to actually start one

also, if you enjoy my emails and my content, if you share it with your friends you can win prizes like a free call with me or free access to my program

God Bless,

Alex