Scaling a startup from $0 to $10M ARR (Annual Recurring Revenue) is one of the toughest challenges founders and teams face. As Jason M. Lemkin and Aaron Ross note in From Impossible to Inevitable, the journey from $0M to $1M feels impossible, and while $1M to $10M may seem improbable, it is achievable with the right approach. Over a decade of guiding startups to reach and surpass this milestone, here are ten critical lessons to help navigate the path to success.
1. Go Small to Go Big
The most successful startups find their best-fit customers early and prioritise them relentlessly. Instead of trying to please everyone, focus on a niche where your product resonates most and expand outward from that strong foundation.
2. Hire Behind Demand
Your sales team isn’t there to generate leads—they’re there to convert existing demand into revenue. Avoid over-hiring sales staff prematurely; instead, invest in marketing and product efforts that generate pipeline opportunities. Hire salespeople only when demand is consistently outpacing your ability to meet it.
3. Hire for Your Stage, Not Theirs
Bringing in someone with big-company experience to lead your startup’s sales, marketing, or product functions is a common mistake. While their expertise might shine in large organisations, startups require individuals who’ve successfully navigated similar growth stages, ideally across multiple companies.
4. Embrace Evolution
Your market at $10M ARR will likely look vastly different from when you were at $2M. Don’t obsess over planning every step of the journey—your plans will change multiple times as the market evolves and your understanding deepens. Adaptability is key.
5. Invest Early in Post-Sales
Existing customers should become your most valuable source of revenue and new leads, but this won’t happen without excellent post-sales processes. Invest in onboarding, support, and customer success early to turn satisfied customers into brand advocates.
6. Don’t Rely on Champions to Sell for You
It’s unrealistic to expect customers to champion your solution effectively on your behalf. Selling your product takes time and effort; your internal sales team must take ownership of this process rather than hoping prospects will do the heavy lifting.
7. Prioritise Relevance Over Relationships
While industry connections can open doors, relevance is what keeps them open. Focus on demonstrating your value quickly. Having a product or service that customers genuinely want will always be the best way to secure and grow business opportunities.
8. Document Everything
Even if your processes are imperfect, write them down. Documentation allows you to identify what works, spot inefficiencies, and scale more effectively. Without it, consistent execution becomes impossible as your team grows.
9. Don’t Scale Prematurely
Premature scaling is a leading cause of startup failure. If you find something that works, don’t rush to expand into other strategies or markets. Double down on what’s working. Focused execution will take you further than diversifying too early.
10. Be Ready to Change
The strategies and tools that got you to one growth stage may not get you to the next. Staying attached to outdated methods can stifle progress. Be willing to evolve, even if it means letting go of processes or roles that no longer serve your goals.
The Journey to $10M and Beyond
The road to $10M ARR is filled with challenges, but it also builds the foundation for what comes next. By focusing on disciplined execution, adapting as necessary, and staying customer-centric, startups can turn improbable goals into inevitable successes.
These lessons serve as a roadmap to navigate the complexities of growth and ensure your startup is equipped to scale sustainably—paving the way for the next milestone.
