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5 growth lessons we learned while scaling from $2M to $3M ARR on August 11, 2023 at 6:30 am
Every million dollars added to your annual recurring revenue (ARR) feels like another World Cup kick that lands on target. The reality is that it usually takes many on-target goals to scale through every additional million, and these do not get any easier.
I’ve worked diligently to not only keep track of all the lessons I learned while scaling my startup that I co-founded two years ago, but also to share them with you. In a previous article, I discussed what I learned during my $0 to $1 million ARR journey. This one will be no different.
While it may seem that not much changes between each successive million, you would be surprised at the mistakes one can make in this latest stage of startup growth. I’ll share why hiring earlier is frequently better, why consistently allocating 10% of revenue to marketing throughout your expansion is key, and the importance of strategic partnerships.
1. Don’t wait too long to hire experienced talent
Apart from select software startups, it is no secret that as you scale up, it becomes necessary to increase your staffing levels. I learned this lesson during my own startup experience and unfortunately made key hires too late, leading to stagnation in our growth as the team quickly became inundated with too much work.
You must keep track of everyone on your team and their bandwidth consistently during the high-growth stages, because workloads can vary dramatically month to month, and even week to week. At my startup, we weren’t doing this. Some individuals on the team were assigned tasks that should have realistically been shared by at least three employees, which inevitably led to errors and lost clients.
Hiring experienced talent that has already accomplished what you’re seeking to do is vital and should occur as soon as your cash flow allows.
In addition, hiring experienced talent that has already accomplished what you’re seeking to do is vital and should occur as soon as your cash flow allows. The moment we made hires for our C-suite was the moment we began to break through numerous plateaus of growth, as their experience pushed us forward. When possible, make these key strategic hires sooner than you might otherwise realistically think you need to.
As a gauge on hiring for your team, ask yourself the following two questions:
How is the weekly bandwidth of everyone on our team?
If we brought on X hire, how much faster would our growth be?
2. Set aside 10% of net revenue for your marketing budget
As our CMO, the budgeting for our marketing team falls directly under my domain. I am a firm believer that 10% of net revenue should be applied directly to marketing expenses. This includes paid acquisition spends, influencer deals, blog content writing and tools.
In B2B specifically, if you constantly spend the same amount while revenue is increasing and everything else stays equal, you won’t have enough volume to support the sales team. For example, we spent the same amount for six straight months, even though our revenues had increased 50%, leaving our sales team with the same lead volume.
We expected to continue driving more closed deals, but that was a huge misconception as marketing spend stayed the same.
Percentage of marketing spend should move at the same rate as revenue. Image Credits: Jonathan Martinez
Make sure that you have a clear directive within your startup on what percentage should be allocated to marketing each month to avoid stagnation.
Hire experienced talent early, allocate 10% of revenue to marketing, and continue dividing team responsibilities as you scale.
President Donald Trump says the United States might one day get rid of federal income tax because of money the government collects from tariffs on imported goods. Tariffs are extra taxes the U.S. puts on products that come from other countries.
What Trump Is Saying
Trump has said that tariff money could become so large that it might allow the government to cut income taxes “almost completely.” He has also talked about possibly phasing out income tax over the next few years if tariff money keeps going up.
How Taxes Work Now
Right now, the federal government gets much more money from income taxes than from tariffs. Income taxes bring in trillions of dollars each year, while tariffs bring in only a small part of that total. Because of this gap, experts say tariffs would need to grow by many times to replace income tax money.
Questions From Experts
Many economists and tax experts doubt that tariffs alone could pay for the whole federal budget. They warn that very high tariffs could make many imported goods more expensive for shoppers in the United States. This could hit lower- and middle‑income families hardest, because they spend a big share of their money on everyday items.
What Congress Must Do
The president can change some tariffs, but only Congress can change or end the federal income tax. That means any real plan to remove income tax would need new laws passed by both the House of Representatives and the Senate. So far, there is no detailed law or full budget plan on this idea.
What It Means Right Now
For now, Trump’s comments are a proposal, not a change in the law. People and businesses still have to pay federal income tax under the current rules. The debate over using tariffs instead of income taxes is likely to continue among lawmakers, experts, and voters.
Former President Donald Trump has signed an executive order directing federal agencies to declassify all government files related to Jeffrey Epstein, the disgraced financier whose death in 2019 continues to fuel controversy and speculation.
The order, signed Wednesday at Trump’s Mar-a-Lago estate, instructs the FBI, Department of Justice, and intelligence agencies to release documents detailing Epstein’s network, finances, and alleged connections to high-profile figures. Trump described the move as “a step toward transparency and public trust,” promising that no names would be shielded from scrutiny.
“This information belongs to the American people,” Trump said in a televised statement. “For too long, powerful interests have tried to bury the truth. That ends now.”
U.S. intelligence officials confirmed that preparations for the release are already underway. According to sources familiar with the process, the first batch of documents is expected to be made public within the next 30 days, with additional releases scheduled over several months.
Reactions poured in across the political spectrum. Supporters praised the decision as a bold act of accountability, while critics alleged it was politically motivated, timed to draw attention during a volatile election season. Civil rights advocates, meanwhile, emphasized caution, warning that some records could expose private victims or ongoing legal matters.
The Epstein case, which implicated figures in politics, business, and entertainment, remains one of the most talked-about scandals of the past decade. Epstein’s connections to influential individuals—including politicians, royals, and executives—have long sparked speculation about the extent of his operations and who may have been involved.
Former federal prosecutor Lauren Fields said the release could mark a turning point in public discourse surrounding government transparency. “Regardless of political stance, this declassification has the potential to reshape how Americans view power and accountability,” Fields noted.
Officials say redactions may still occur to protect sensitive intelligence or personal information, but the intent is a near-complete disclosure. For years, critics of the government’s handling of Epstein’s case have accused agencies of concealing evidence or shielding elites from exposure. Trump’s order promises to change that narrative.
As anticipation builds, journalists, legal analysts, and online commentators are preparing for what could be one of the most consequential information releases in recent history.
What Happened at the United Nations
On Friday, Israeli Prime Minister Benjamin Netanyahu addressed the United Nations General Assembly in New York City, defending Israel’s ongoing military operations in Gaza. As he spoke, more than 100 delegates from over 50 countries stood up and left the chamber—a rare and significant diplomatic walkout. Outside the UN, thousands of protesters gathered to voice opposition to Netanyahu’s policies and call for accountability, including some who labeled him a war criminal. The protest included activists from Palestinian and Jewish groups, along with international allies.
Why Did Delegates and Protesters Walk Out?
The walkouts and protests were a response to Israel’s continued offensive in Gaza, which has resulted in widespread destruction and a significant humanitarian crisis. Many countries and individuals have accused Israel of excessive use of force, and some international prosecutors have suggested Netanyahu should face investigation by the International Criminal Court for war crimes, including claims that starvation was used as a weapon against civilians. At the same time, a record number of nations—over 150—recently recognized the State of Palestine, leaving the United States as the only permanent UN Security Council member not to join them.
International Reaction and Significance
The diplomatic walkouts and street protests demonstrate increasing global concern over the situation in Gaza and growing support for Palestinian statehood. Several world leaders, including Colombia’s President Gustavo Petro, showed visible solidarity with protesters. Petro called for international intervention and, controversially, for US troops not to follow orders he viewed as supporting ongoing conflict. The US later revoked Petro’s visa over his role in the protests, which he argued was evidence of a declining respect for international law.
Why Is This News Important?
The Gaza conflict is one of the world’s most contentious and closely-watched issues. It has drawn strong feelings and differing opinions from governments, activists, and ordinary people worldwide. The United Nations, as an international organization focused on peace and human rights, is a key arena for these debates. The events surrounding Netanyahu’s speech show that many nations and voices are urging new action—from recognition of Palestinian rights to calls for sanctions against Israel—while discussion and disagreement over the best path forward continue.
This episode at the UN highlights how international diplomacy, public protests, and official policy are all intersecting in real time as the search for solutions to the Israeli-Palestinian conflict remains urgent and unresolved.
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