Lenny’s Newsletter · Subscriber post · Growth & retention · Pricing & monetization

Scaling your B2B growth engine

Part seven of my seven-part series on kickstarting and scaling a B2B business

Lenny RachitskyOct 24, 202331 min♥ 197
SourceLenny’s Newsletter
KindSubscriber post
PublishedOct 24, 2023
Readers♥ 197
Originallennysnewsletter.com ↗
N:

Lenny Rachitsky closes his seven-part B2B series by answering how long reaching $1M ARR typically takes, which growth channels scale B2B companies, and when and how much to charge. He draws on interviews with founders of top B2B companies, covering time-to-$1M benchmarks, six growth channels, and pricing lessons.

Subscriber post — summary only

01Key takeaways

  • Aim to reach $1M ARR roughly 1.5 years after signing the first customer, matching top B2B companies' pace.
  • Most growth comes from one of three channels: self-serve inbound, sales-assisted inbound, or outbound sales; optimize that one first.
  • Start charging earlier than feels comfortable, since early revenue builds discipline and leverage.
  • Price higher than instinct suggests, because founders tend to underprice their product's value.
  • Keep early pricing simple, but revisit it every six months or so as the product and customers mature.
“My number one piece of advice is to ask for money earlier.”Spenser Skates · Lenny’s Newsletter
“Most companies charge too late. We started charging from day one.”Mathilde Collin · Lenny’s Newsletter

02Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.