2min chapter

B2BaCEO (with Ashu Garg) cover image

How to Be a SaaS Wunderkind (Christian Owens, Founder & CEO of Paddle)

B2BaCEO (with Ashu Garg)

CHAPTER

The Burn Multiple Is Very Short Term in Some Ways

The burn multiple is very short term in some ways. Am I going to generate a dollar of incremental ARR? Yeah. And that depends on whatever you're worth margin at that point in time, depending on sort of the other unit economics are. But on an incremental basis it's really great to look at on a kind of slightly longer time horizon. Because one of the key things and we've done it a couple of times and we've regretted it is everybody every startup in the world has come up with a budget or an annual plan or something. Every budget I've ever seen is a hockey stick. For the next two quarters we're only going to grow like 10% a quarter.

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