Stop Chasing Big and Start Building Valuable
In the SaaS world, it's tempting to focus on top-line growth. MRR climbing? New logos added? Expansion deals signed? All great. But not all revenue is created equal, and the wrong kind of growth can quietly reduce your company's value.
At One Degree Financial, we work with SaaS founders daily who navigate the tension between “big” and “valuable.” What they learn quickly is this: the businesses that sell for the highest multiples are not always the ones with the biggest revenue. They are the ones with the most predictable revenue.
Recurring Revenue Means Predictable Value
Strategic acquirers are not just looking at revenue numbers. They are looking for consistency. Recurring contracts, subscription billing, and long-term customer retention are all signs of a stable, scalable company.
This is why SaaS companies with clean recurring revenue streams are often valued on a multiple-revenue basis. On the other hand, service-based businesses or those with inconsistent, one-time income are typically valued using a multiple of EBITDA, which usually results in a lower exit number.
What Founders Can Learn From Mike Winnet
Mike Winnet, founder of the UK-based e-learning company Learning Heroes, understood this better than most. His company sold engaging, animated training content through a subscription model. It was simple and sticky.
When Google approached him with a one-time offer worth £90,000 to build a custom course, it looked like an obvious win. Three months of work, a major brand name, and a quick cash injection. But Winnet said no.
Why? Because the deal did not align with his vision.
His goal was to build a company that could command a premium multiple at exit. Accepting one-off project work, even from Google, would have repositioned his business as a service provider. That change could have reduced the perceived value of Learning Heroes in the eyes of potential acquirers.
Winnet stayed focused, and it paid off. He eventually sold Learning Heroes to Litmos for £8 million, a price that reflected nearly four times revenue. That multiple was possible only because he protected the company’s recurring revenue model.
The Role of Financial Strategy in Building Value
This kind of discipline is not accidental. It comes from making financial decisions that support your long-term strategy.
We have seen founders accidentally lower their company’s valuation by taking on revenue that does not align with their model. A short-term revenue boost is rarely worth a long-term reduction in exit value.
That is where CFO Advisory Services can make a difference. Having the right financial partner helps you maintain alignment with your long-term goals instead of getting sidetracked by the next flashy opportunity.
Whether you are working with a Fractional SaaS CFO or building your internal finance team, the mission is the same. Build your company for the kind of growth that investors and acquirers actually value.
Ask This Before You Say Yes
Every time a new opportunity lands in your inbox, ask the same question Mike Winnet and his team asked themselves:
"Does it make the boat go faster?"
If it pulls you away from building a scalable, subscription-based SaaS business with strong margins and low churn, it is probably not worth it.
Ready to make decisions with real financial clarity?
Our Fractional SaaS CFO Services help growth-stage founders focus on what truly matters for scaling. Book a Financial Readiness Call today to see how our Financial Advisory Services can transform your financial data into a strategic advantage that keeps your business moving forward.
Stop second-guessing. Start scaling with confidence.