My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Software companies that grow slowly (4+ years to $100k MRR) often have better exits than fast-growth companies
The Reasoning
Slow growth often indicates solving real problems with sustainable business models, while fast growth can mask fundamental issues
What Needs to Be True
- Customers truly love the product despite slow adoption
- Low churn rates indicating real value delivery
- Sustainable unit economics from early stage
- Market timing eventually aligns with solution
Counterargument
Slow growth often indicates poor product-market fit, limited market size, or execution problems that rarely resolve themselves
What Would Change This View
Data showing most slow-growth software companies fail vs succeed, or evidence that speed of growth doesn't correlate with exit quality
Implications for Builders
Don't abandon software companies too quickly if fundamentals are sound
Focus on retention and customer satisfaction over growth rate
Be prepared for 5-10 year journey in B2B software
Validate problem deeply before optimizing for speed
Example Application
“Follow-up Boss took 4 years to reach $100k MRR but eventually sold for $500M due to strong customer retention and market position”