Comment by mdorazio
3 days ago
Congratulations! But I’m disappointed with no mention of profit level in this post or another one linked. My last business I scaled to 500K ARR in less than two years, with $20K in total annual profit including the $0 my cofounder and I paid ourselves for many hours of work. I shut it down a year later and strongly regret the amount of work I put into it.
There’s an ARR metric trap in the founder community where people focus on revenue rather than on reaching a level of take-home income comparable to what they could make at a normal job. The former is a lot easier than the latter (especially in the US for people who can take home $250K fairly easily working in tech) - as the saying goes, you can make infinite revenue by selling dollars for 99 cents.
Profit margin started out around 90% in the early years, but is looking more like 65% this year now that we're making a concerted effort to reinvest into growth, building a team, etc.
I don't think I'd call earning $250k "easy". Yes a significant % of us on HN are there, but we're still in the minority.
If ARR grows enough, there should be plenty of room in there to pay the founders.
For extreme examples of ARR growth at 0% profit paying off, look at Uber, Amazon, and ServiceNow. I know these are very much outliers. All three had rapid revenue growth but profits at (or far below) zero. But for all three, the founders are sitting pretty today.
https://valustox.com/NOW
https://valustox.com/UBER
https://valustox.com/AMZN
> For extreme examples of ARR growth at 0% profit paying off
Pretty sure parent was referring to gross profit, because that's what you'd look at to pay your salary. These examples are not relevant.
I share your frustration with the endless focus on revenue, rather than profit (looking at you, indiehackers.com). I suspect in many cases it is because they are embarassed to disclose their profit.
But congrats to the OP. It is impressive growth for a bootstrapped business.