Engagedly’s Revenue Grows $1M Each Year
In 2017, just a year after starting, Engagedly had already surpassed $1 million in revenue. This rapid growth kept up, and by 2024, Engagedly’s Annual Recurring Revenue (ARR) impressively stands at $8 million.
With CEO Sri Chellappa at the wheel, the company’s journey from its inception to reaching an $8 million Annual Recurring Revenue (ARR) shows growth through intelligent hiring.
Chellappa’s insights on recruitment and team-building provide a rich template for other companies striving to excel in the SaaS domain.
This article will be a step-by-step on when and who to hire to best grow your company. Let’s start with the early stages, step 1.
1. Laying the Foundation at $1 Million ARR in 2016
The early stages of Engagedly’s growth were marked by hiring decisions that set the stage for future expansion.
“Your first hires at $1M ARR are your fulcrum.”
Chellappa
This philosophy underscores the importance of these initial team members who help pivot the company towards greater heights.
In 2017, when Engagedly reached the $1 million ARR milestone, Sri Chellappa, the CEO, focused on foundational hiring to establish a strong team that could support the company’s growth.
During this critical period, Engagedly hired its first Account Executive (AE). This strategic hire was crucial as AEs play a key role in driving sales and establishing a customer base, which is vital for a SaaS company in its early stages of growth. Besides the AE, Chellappa focused on building his company himself.
“I am a firm believer that the founder should be doing sales and some of the marketing for the first 2 years. I closed the first 40 accounts”
Chellappa focused on hiring individuals who were not only eager to learn but could also pivot with the company’s needs. This approach ensured that Engagedly’s early team was resilient, versatile, and capable of wearing multiple hats, which is crucial for any startup in its nascent stages.
2. $3 Million to $5 Million ARR
This phase was distinctly different from the earlier stages, as it required addressing gaps and learning from the hiring practices that were put in at the $1 million ARR mark.
Recognizing gaps in the early stages was essential for realigning the hiring strategy to better suit the company’s evolving needs. This idea helped in understanding the kinds of skills and roles that were truly beneficial for the company as it scaled.
One of the key lessons during this growth phase was the importance of timing in making leadership hires.
As Engagedly reached $4 million in ARR in 2020, the decision to hire the first Vice President marked a pivotal moment. This hire was crucial not just for adding expertise to the team but also for steering the company through subsequent growth phases.
Chellappa openly shared the lessons learned from hiring mistakes made during this crucial period. During the $3 million to $5 million ARR phase, Engagedly’s hiring mistakes included rushing the hiring process, overlooking cultural fit, inadequately defining roles, delaying crucial leadership hires, and neglecting internal talent development.
By transparently discussing these errors, Engagedly fostered a culture of continuous improvement and adaptability within its hiring practices.
3. Shifts for Scaling to $10 Million ARR
CEO Sri Chellappa highlighted the unique challenges of this phase.
“Hiring for this segment will be different and a lot harder.”
This period marked a shift toward filling more specialized roles and managing higher expectations for each new hire.
During this critical growth phase, Engagedly focused not just on expanding the team but on making sure the quality of each hire was high.
“Hire for Adventurers but also for expertise”
This quote emphasizes the need for team members who are not only skilled but also thrive in a dynamic startup environment.
During this time period, addressing hiring missteps became super important. Chellappa shared insights on corrective strategies, explaining, “How you know you made the bad hire and what to do about it.” This approach involves retraining, repositioning, or sometimes terminating employees to maintain team alignment and performance.
A significant strategic development during this time was the hiring of the second Vice President (VP) in 2022, as Engagedly approached $6 million in ARR. This move was aimed at bolstering the leadership team to drive key business areas and support the company’s scaling efforts.
Key Insights for Effective SaaS Hiring
From his extensive experience, Chellappa offers several actionable insights for SaaS companies:
- Attitude Over Skill: Engagedly’s emphasis on hiring for attitude has been a game-changer. This approach focuses on a candidate’s potential to adapt and grow with the company, which is often more valuable than existing skills that can be enhanced through training.
- Swift Evaluation of New Hires: Chellappa advocates for a rapid assessment period for new hires. “Within 6-8 weeks, decide if a new hire is the right fit,” he suggests. This strategy helps in maintaining momentum and minimizing the impact of potentially unsuitable hires.
- Strategic Leadership Hiring: The timing of hiring key leadership roles cannot be overstated. These decisions must be made with care, as leaders play a transformative role in a company’s growth trajectory.
The Adventure of Building a Team
Chellappa’s hiring philosophy extends to fostering a sense of adventure among team members. He believes in empowering his employees to see their roles as part of a larger journey, not just a job. This mindset has been integral in building a workplace that values innovation and continuous improvement.
“Finding people who view their role as an adventure contributes significantly to our culture of growth and exploration,” says Chellappa. This approach has not only helped in attracting top talent who are eager to make a meaningful impact but also in retaining them through Engagedly’s various growth phases.
As Engagedly continues to grow, the lessons learned from its hiring practices offer invaluable insights for other SaaS leaders. The strategic approach to recruitment and team building has not just fueled revenue growth but has also cultivated a dynamic and resilient company culture.
