Getting to $1M ARR can be driven by a founder's personal hustle. To scale to $10M and beyond, you must have a repeatable GTM recipe. The key question is: can you hire an average account executive off the street and teach them to replicate your success? If not, you don't have a scalable business.
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eSentire took seven years to hit its first million in revenue, a slow "death march." However, it only took three years to get from $1M to $10M. This highlights that the real test of scalability isn't initial traction but the speed of the next 10x growth phase.
Merge's founder believes a startup's first $10M in revenue can be achieved through the founders' sheer force of will. However, scaling to $100M requires a fundamental shift: building a strong leadership team, focusing on enterprise sales, and creating scalable systems—a completely different company.
Founders often mistake $1M ARR for product-market fit. The real milestone is proven repeatability: a predictable way to find and win a specific customer profile who reliably renews and expands. This signal of a scalable business model typically emerges closer to the $5M-$10M ARR mark.
The founder, as the best salesperson, should always have a trainee shadowing them. This "double dips" on their time, turning every sales activity into a real-time training session. It's the most efficient way to transfer skills, duplicate the founder's success across a team, and build a scalable sales process based on modeling.
A founder's ability to sell is not proof of a scalable business. The real litmus test for repeatability is when a non-founder sales hire can close a deal from start to finish. This signals that the value proposition and process are teachable, which is the first true sign of a scalable go-to-market motion.
