Scaling to $1M ARR
Reach $1M ARR
Track your vital signs: MRR/ARR (predictable revenue), CAC (cost to acquire a customer), LTV (total customer value). LTV must be at least 3x CAC. In 2026, 'growth at all costs' is over—investors want sustainable growth. If bootstrapping, prioritize profitability early. Focus on being 'Default Alive.'
Contracts are your shield. If it isn't in writing, it didn't happen.
- The Must-Haves:
- Operating Agreement / Bylaws: The Constitution of your company. It says who owns what and who makes decisions.
- IP Assignment: This is VITAL. It ensures that everything you (or your co-founders) build belongs to the company, not you personally. Investors will not give you money without this.
- Terms of Service / Privacy Policy: If you have a website, you need these to protect you from being sued by users.
- The Compliance Check: File your BOI (Beneficial Ownership Information) report. As of 2024/2025, every new U.S. company must tell the government who owns it within 90 days or face huge daily fines.
Free Resource: What legal documents do startups need in the US?
5) Scaling to $1M ARR
Scaling your startup to $1 Million in Annual Recurring Revenue (ARR) is a monumental shift. It means you’ve moved from a student project to a validated machine. For a student founder, this stage is about shifting from doing everything yourself to building systems that work without you.
Here is your elaborate, step-by-step guide to scaling.
Resources
Record your progress
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