11 Insights Time Doctor Used to Bootstrap $22M+ Revenue

Time Doctor’s journey from its inception in 2010 to surpassing $20 million in annual recurring revenue (ARR) in 2024 is a testament to strategic bootstrapping and disciplined growth. Here’s a brief timeline of their revenue milestones:

• 2010: Launched with $0 revenue
• 2020: $4 million ARR
• 2021: $8.5 million ARR
• 2022: $13 million ARR
• 2024: Over $22 million ARR

Liam Martin, co-founder of Time Doctor, has shared invaluable insights from this journey, emphasizing the unique playbook required for bootstrapped SaaS companies.

Bootstrapped Companies Are Outpacing Venture-Backed Peers

Bootstrapped companies often outpace their venture-backed peers once they hit significant revenue milestones. The median growth rate for bootstrapped SaaS companies from $3 million to $20 million ARR is 28.5%, compared to 24% for those over $10 million ARR.

This accelerated growth can be attributed to the resourcefulness and resilience ingrained in bootstrapped ventures, where every decision is driven by necessity rather than luxury.

1. “If You Can’t Measure It, You Can’t Improve It” – Lord Kelvin

At Time Doctor, every employee has a measurable goal. This quantifiable focus ensures continuous improvement and accountability. From improving Product Qualified Leads (PQLs) and Marketing Qualified Leads (MQLs) to refining their sales pipeline, measurement is key to their success.

Liam Martin stresses that in their company, everyone has a number. If you don’t have a quantifiable, trackable goal to work towards, you can’t work there. This philosophy is embodied in their leading indicator reports, which guide their strategic decisions and operational adjustments.

Through consistently measuring and analyzing performance metrics, Time Doctor can identify areas for improvement and make data-driven decisions that enhance productivity and growth.

2. Camels, Not Unicorns

Resource efficiency over lavish spending is crucial. Unlike unicorns with abundant funding, bootstrapped companies must make do with less, fostering creativity and efficiency. This mindset shift encourages sustainable growth and long-term resilience.

The camel analogy reflects a business model that thrives under constraints. With reduced resources, companies are forced to eliminate optionality and focus on core strengths. This disciplined approach ensures that every dollar is spent wisely, and every initiative aligns with the company’s strategic goals.

With companies prioritizing profitability and sustainability over rapid, unsustainable growth, bootstrapped teams can build strong foundations for long-term success.

3. Large TAMs Are Bad for Bootstrapped Companies

Instead of targeting vast total addressable markets (TAMs), Time Doctor focused on smaller, manageable segments. This focus allowed them to dominate their niche and grow sustainably. Liam believes that a large TAM can be a distraction for bootstrapped companies, leading them to spread their resources too thin and diluting their impact.

When Time Doctor started, they had a billion-dollar TAM. Today, due to the rise of remote work, their TAM is estimated to be between $20-30 billion. However, their initial focus on a smaller, specific segment allowed them to establish a strong foothold and build a loyal customer base.

Honing in on a well-defined market segment, Time Doctor could tailor its product offerings and marketing strategies to meet the specific needs of its target audience, leading to higher customer satisfaction and retention rates.

4. Remote Work as a Competitive Advantage

Remote work has proven to be a significant productivity booster for Time Doctor. Time Doctor has teammates in 46 countries, all working seamlessly due to their deep understanding of how remote work operates.

The future of work is undoubtedly remote, and Time Doctor is a prime example of how to leverage this trend for business success. The benefits of remote work are listed below:

• Remote workers are 35-40% more productive than office workers.
• Remote workers have a higher engagement rate than onsite workers.
• Remote work saves an average of 72 minutes daily on commuting.
• Employees save between $600 to $6000 yearly by working from home.
• 93% of remote workers believe it positively affects their mental health.
• 51% of employees prefer all-remote work.
• 46% of employees prefer a hybrid work model.
• Only 4% of employees prefer working in the office.
• Remote work results in higher retention rates.

Embracing remote work early on allowed Time Doctor to attract top talent from around the world, reduce overhead costs associated with maintaining physical offices, and create a flexible work environment that promotes work-life balance.

This strategic decision has been a key driver of their growth and has positioned them as a leader in the remote work space.

5. One to Three Ways to Get Customers

Liam advises focusing on a few key user acquisition channels. For Time Doctor, SEO, paid ads, and email marketing provided the highest returns, with SEO alone boasting a 202% return. This focused approach ensures that resources are allocated efficiently and that each channel is optimized for maximum impact.

Many companies make the mistake of spreading their marketing efforts too thin, trying to tap into too many acquisition channels simultaneously. Time Doctor’s experience shows that by concentrating on a few high-ROI channels, companies can achieve better results and drive sustainable growth.

Time Doctor was able to create a steady stream of qualified leads and convert them into loyal customers because they were able to understand this.

6. Build Product #2 After You Hit $10 Million ARR

Time Doctor learned this the hard way with their second venture, Staff.com. They diverted resources too early, causing setbacks. The lesson: focus on scaling successful products before branching out. Liam recalls that while Staff.com struggled, Time Doctor was growing at 60% year-over-year with no marketing or engineering resources.

This insight underscores the importance of prioritizing and scaling winning products before exploring new opportunities. It’s important to make sure that the primary product has reached its full potential and is on a stable growth trajectory before diverting attention and resources to new ventures. By doing so, companies can avoid the pitfalls of overextending themselves and ensure that their core offerings continue to deliver value to customers.

7. More Than $10 Million ARR Means You Are a Retention Company

As Time Doctor grew, the focus shifted from acquisition to retention. In 2019, new revenue was 40% of their total revenue; by 2023, it was only 15%. Their high Net Promoter Score (NPS) of over 56 reflects their commitment to customer satisfaction.

Retention becomes increasingly important as companies scale. It’s not just about acquiring new customers but also about ensuring existing customers are happy and continue to see value in the product.

Time Doctor deployed more resources to enhance customer experience, measure satisfaction, and drive long-term loyalty. Key metrics such as CSAT, NPS, net retention, and referral rates were closely monitored to ensure that customers remained engaged and satisfied with the product.

By focusing on retention, Time Doctor was able to build a stable and predictable revenue stream, reduce churn, and increase customer lifetime value. This shift in focus allowed them to allocate resources more effectively and drive sustainable growth.

8. Brand Becomes Critical Past $10 Million ARR

Brand recognition played a crucial role in Time Doctor’s growth, especially during the COVID-19 pandemic. They saw a surge in revenue as companies turned to them for remote work solutions. Testing brand strength through price increases showed minimal impact on churn, proving their brand’s value.

A strong brand can drive customer loyalty, reduce churn, and create a competitive moat.

For Time Doctor, brand strength was tested by raising prices, which resulted in a direct revenue increase with little to no negative impact on customer retention. This demonstrated the power of their brand and the trust they had built with their customers.

Investing in brand building and maintaining a strong brand presence is essential for long-term success. By consistently delivering value and maintaining a positive reputation, Time Doctor was able to create a loyal customer base that continued to support their growth.

9. Product-Led Growth First, Sales-Led Later

Time Doctor’s initial growth was driven by a product-led model. When the pandemic hit, their focus on product-led growth paid off, allowing them to scale rapidly without a massive sales team. By 2020, their product-led engine was converting 98% of customers.

Liam recounts that during the pandemic, their product-led growth strategy allowed them to onboard customers quickly and efficiently.

They later focused their sales team on high-value deals, optimizing their resources and maximizing revenue. This approach ensured that the majority of their customers were acquired through the product itself, reducing the need for an extensive and costly sales force.

By prioritizing product development and creating a seamless user experience, Time Doctor was able to attract and retain customers organically. Once the product had proven its value and scalability, they could then leverage a sales team to target larger, high-value accounts and drive further growth.

10. Pay Less Attention to Competitors

Instead of focusing on competitors, Time Doctor concentrated on serving their customers better. This approach allowed them to avoid the pitfalls of competitive distraction and invest their energy in customer satisfaction and product improvement.

Liam showed a bar graph indicating that being outcompeted is the fourth top reason why startups fail, while running out of cash is the second. For bootstrapped companies, living within their means

11. Founders Will Try to Self-Sabotage

Liam believes that founders often self-sabotage, consciously or subconsciously, due to a love for chaos or deep-seated beliefs that they don’t deserve success. This behavior can manifest in various ways, such as building products that don’t align with the core business or neglecting important partnerships and customer relationships.

To overcome this, founders need to recognize and address their limiting beliefs. Liam shares that working through these issues is crucial for long-term success. He talks about how important it is to surround yourself with supportive people and staying focused on the company’s vision and goals.

What Can We Takeaway?

Time Doctor’s journey to $20M+ ARR showcases the power of bootstrapping with strategic focus and disciplined execution. From precise measurement to leveraging remote work, their insights offer a roadmap for other SaaS companies aiming to grow sustainably without venture capital.