Benefits of the $1 Million Recurring Revenue Milestone

In my mind, $1 million in annual recurring revenue is a massive milestone for startups. There are many milestones along the way like signing the first 10 customers and getting to profitability to go along with a $1M run-rate, but it’s right near the top.

Here are a few benefits of the $1 million recurring revenue milestone:

  • Approaching critical mass where the business can operate independently of the entrepreneurs
  • Enough members on the team where people can take vacations without worrying about things falling apart
  • Nice bump in valuation if there’s a desire to raise outside capital and a larger pool of available institutional investors (most VCs aren’t interested in businesses with less than a million in revenue)
  • Qualification for the Entrepreneurs’ Organization
  • Predictability of future cash flows and easier budgeting / planning

$1 million in recurring revenue is a huge milestone for entrepreneurs and I recommend adding it to the list of goals.

What else? What are some other benefits of the $1 million recurring revenue milestone?

One thought on “Benefits of the $1 Million Recurring Revenue Milestone

  1. We are nearly there and the benefits for us is that internally we can really start to feel the momentum and the start of something great. It also gives us a huge boost in confidence to know that we can actually build a ‘real’ business.

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