Growth Rate Philosophy

Ankur Nagpal shares how Teachable transformed their growth strategy by implementing a deliberate, calculated approach instead of pursuing maximum growth at all costs. This "Every Dollar Model" became their framework for sustainable growth, leading to a 16x increase in revenue.

Key Points:

• Intentional Growth Planning:

  • Stopped trying to grow as fast as possible
  • Set specific monthly growth targets (initially 30% month over month)
  • Worked backwards from growth targets to determine required revenue

• The Every Dollar Model:

  • Calculate exact revenue needed for target growth
  • Account for existing revenue sources
  • Identify revenue gaps that need to be filled
  • Example: In August 2015
    • Starting point: $25,000 MRR
    • Target: $10,843 in new monthly recurring revenue
    • Known sources: $8,000 (organic upgrades, webinars, enterprise sales)
    • Gap to fill: $2,800

• Evolution of the Model:

  • Early Stage: Month-to-month planning
  • Later Stage ($10M+ ARR):
    • Full year planning required
    • More sophisticated with seasonality adjustments
    • Greater emphasis on organic growth
    • Integration with finance team and budgeting processes

• Key Insights:

  • Sustainable growth can come from repeatedly doing "unsustainable" things
  • Growth momentum builds company morale and brand
  • Model worked effectively until reaching $10M ARR
  • Framework applicable to various business types, not just software companies

• Current Challenges:

  • Haven't mastered paid acquisition (Customer acquisition costs around $5,000)
  • Need to learn paid marketing to maintain growth targets
  • Planning shifting from monthly to yearly forecasting

The speaker emphasizes that intentional growth planning, rather than leaving growth to chance, was crucial to their success.