(4/6) How to get from $1M to $10M ARR

"If you can build predictable pipeline, it solves all the problems in the world."

This is part 4 of a 6 part deep dive on how to get from $1M to $10M ARR which is based on my discussion with Guillaume Jacquet, the co-founder of Vasco, his 2nd startup after selling his last one to Lightspeed Commerce (LSPD.TO) post Series B.

Step 2/4: Build a predictable pipeline engine

Step 1 was to nail customer success first.

The second function you need to master after customer success on your road from $1M to $10M in revenue is to achieve predictable pipeline generation.

When they think about scaling sales, most founders calculate how many AEs they need based on quota attainment to reach revenue goals.

But without solving for pipeline first, those salespeople will struggle or fail entirely.

Predictable pipeline generation means consistently putting your product in front of qualified prospects who match your target customer profile.

Doing this right first becomes your insurance policy against the revenue rollercoaster that plagues so many companies between $1M and $10M.

Imagine trying to run a restaurant without a predictable supply of ingredients. You could hire the best chefs in the world, but without reliable ingredients, they can't cook consistently great meals.

Your AEs face the same challenge without reliable pipeline.

Now, when thinking about scaling pipeline generation, most startups will bring on one SDR to handle both inbound and outbound leads.

This seems efficient - shouldn't one person handle both to maximize productivity?

Ideally no, here's why:

Inbound qualification (responding to website inquiries, content downloads, etc) is dramatically easier than outbound prospecting.

When someone is responsible for both, they naturally focus on inbound leads while outbound activities become secondary.

It's like asking someone to both respond to incoming support tickets and make cold calls. They'll always prioritize the incoming tickets because it's easier and more immediately rewarding.

Plus the skills required for each role differ significantly. Inbound specialists excel at quickly qualifying existing interest. Outbound specialists must create interest where none existed, craft compelling messages, and navigate through gatekeepers.

Perhaps most importantly, blending these functions obscures your metrics. If pipeline generation fluctuates, is it because your marketing-generated leads decreased or because outbound efforts weren't effective?

Without clear separation, you can't diagnose issues accurately.

Now, building this predictable pipeline engine requires patience and experimentation. You'll need to test various channels and messages over several months before establishing reliable patterns.

You know you've succeeded when you have consistent pipeline generation that meets or exceeds your targets for multiple months in a row. That’s when you can move on to the next step: Optimizing the closing process.