When to look for escape velocity in a SaaS company?
Posted: Sat Jan 25, 2025 6:29 am
If you’re a SaaS company or an entrepreneur who’s just launched your startup, you might be wondering when it’s time to start thinking about reaching Escape Velocity . Well, the answer to that question depends on several factors, including the type of business you run and the amount of capital you’ve raised.
What is escape velocity?
Escape velocity is a term used in business and marketing to describe a company that has reached the point where it is growing at an exponential rate. This means that the growth is so great that it is impossible to predict what will happen next. This concept comes from physics, where escape velocity is the speed required for an object to leave the gravitational pull of the Earth and enter space.
escape-velocity
When to Start Looking for the Escape Velocity
There are many factors that contribute to achieving Escape Velocity and it is essential to have a clear understanding of each in order to achieve it. If any of these areas are unclear or your business model is not well defined, you will need more time before you get close enough to Escape Velocity.
The following sections will review each area of focus individually and provide examples of how they relate to each other.
The first step is to get a solid MVP to market.
The first step is to get a solid MVP out to market. This means you need to have something good enough to test the market and get feedback from users on what they like and don’t like. When developing your MVP, make sure it’s something people want to use!
The second step is to find product market fit.
At this stage in your business life, it's time to find product market fit.
Finding product-market fit is the process of determining whether or not your product solves a problem that people are willing to pay for.
This can be done by iterating on your customers’ needs and making small changes to your product. The goal is to find out what they want, rather than assuming it based on assumptions or past experiences with similar products.
The most successful companies have found their own way to achieve product-market fit:
Airbnb was born to founders living in San Francisco during the housing crisis;
Facebook was created as a university social network;
Uber evolved from ride-sharing services like Sidecar and Lyft;
Slack was built for businesses that were looking for new ways to communicate internally (and externally) with their employees and customers.
Identify the right channel for your product
When it comes to finding the right channel for your product, there are a few things you need to think about:
The product. What does it do? Is it a tool or an app? Does it help with productivity? How does it work, and what value does it provide to the user? These are some of the questions you’ll need to ask yourself to determine the best place to place your product.
Target audience . Who is this product for? What are their goals or thailand email list needs that you can help them with by providing your service or software? These considerations will also factor in what channels make sense – a company focused on helping small businesses with payroll might want an app, while another focused on streamlining operations might benefit from an online platform.
Return on investment (ROI). Return on investment refers to the profit you can expect from a certain channel over time. For example, if an ad campaign costs €€ 2 million over three years, while another costs €€ 20,000 over its lifetime, then clearly investing more money up front would be worth less than paying less up front, but with better returns over time!
The next third step is to assess whether you can evolve your channels and improve your reach.
If you want to achieve Escape Velocity, you need to know if your channels can mature. That means they are ready and able to serve more customers, in the right customer segments, at the right time.
The next step is to assess whether you can evolve your channels and improve your reach.
What is escape velocity?
Escape velocity is a term used in business and marketing to describe a company that has reached the point where it is growing at an exponential rate. This means that the growth is so great that it is impossible to predict what will happen next. This concept comes from physics, where escape velocity is the speed required for an object to leave the gravitational pull of the Earth and enter space.
escape-velocity
When to Start Looking for the Escape Velocity
There are many factors that contribute to achieving Escape Velocity and it is essential to have a clear understanding of each in order to achieve it. If any of these areas are unclear or your business model is not well defined, you will need more time before you get close enough to Escape Velocity.
The following sections will review each area of focus individually and provide examples of how they relate to each other.
The first step is to get a solid MVP to market.
The first step is to get a solid MVP out to market. This means you need to have something good enough to test the market and get feedback from users on what they like and don’t like. When developing your MVP, make sure it’s something people want to use!
The second step is to find product market fit.
At this stage in your business life, it's time to find product market fit.
Finding product-market fit is the process of determining whether or not your product solves a problem that people are willing to pay for.
This can be done by iterating on your customers’ needs and making small changes to your product. The goal is to find out what they want, rather than assuming it based on assumptions or past experiences with similar products.
The most successful companies have found their own way to achieve product-market fit:
Airbnb was born to founders living in San Francisco during the housing crisis;
Facebook was created as a university social network;
Uber evolved from ride-sharing services like Sidecar and Lyft;
Slack was built for businesses that were looking for new ways to communicate internally (and externally) with their employees and customers.
Identify the right channel for your product
When it comes to finding the right channel for your product, there are a few things you need to think about:
The product. What does it do? Is it a tool or an app? Does it help with productivity? How does it work, and what value does it provide to the user? These are some of the questions you’ll need to ask yourself to determine the best place to place your product.
Target audience . Who is this product for? What are their goals or thailand email list needs that you can help them with by providing your service or software? These considerations will also factor in what channels make sense – a company focused on helping small businesses with payroll might want an app, while another focused on streamlining operations might benefit from an online platform.
Return on investment (ROI). Return on investment refers to the profit you can expect from a certain channel over time. For example, if an ad campaign costs €€ 2 million over three years, while another costs €€ 20,000 over its lifetime, then clearly investing more money up front would be worth less than paying less up front, but with better returns over time!
The next third step is to assess whether you can evolve your channels and improve your reach.
If you want to achieve Escape Velocity, you need to know if your channels can mature. That means they are ready and able to serve more customers, in the right customer segments, at the right time.
The next step is to assess whether you can evolve your channels and improve your reach.