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Starting up a SaaS company is like walking a tightrope. You need a hit a fine balance between reinvesting your money for continued growth and holding onto the money to show a profit. There is a standard investors look at when deciding to invest in your SaaS company, or not. They use the 40 rule for startups to determine if you are on the right path.

What Is The 40 Rule?

The 40 Rule is simple to define and measure, but much harder to obtain and maintain. It basically states your subscription business is growing at a rate of 20% per year or greater while maintaining a profit of 20%.

But wait, it isn’t quite that simple. The 40 Rule for startups is actually a ratio, which is used to measure the trajectory of your SaaS Company. The ratio is based upon hitting a guideline of 40 being the addition of your growth rate percentage and your profit percentage. Let’s look at three examples to illustrate the rule:

Example 1 – Balanced Growth And Profits: As we alluded to before, you could have a great balance between growth and profits to hit the rule of 40 ratios. This could be with a growth rate of 20% and a profit percent of 20%. The 20% plus 20% hits the 40 standard.

Example 2 – High Profits With Slower Growth: If your company is targeting a narrow market your numbers could be extremely different and still be highly attractive to investors by hitting the rule of 40 a different way. You could be seeing slow growth of only 10%, but are consistently hitting a 30% profit percentage. That gives you a 30% plus 10% to maintain the rule of 40.

Example 3 – Explosive Growth With Low Losses: Yes, you can hit the rule of 40 and be losing money. That is why you often see venture capitalists pouring money into companies losing money. If your company is growing at a rapid 50% rate, you could be losing 10% and still hit the rule of 40. It would give you 50% plus -10% resulting in 40.

How does this make sense to an investor, or for your business? Rapid growth shows the potential for large profits in the future. Your business is growing an impressive subscription base and your client acquisition costs will start to decline over time, leading to profits.

On the opposite side, slow growth but high profits indicate laser focus on a profitable market. It shows you have done your research, know your market, and can make a profit from it. Each of our scenarios shows the potential for long term profits and success.

When you fall far outside of these ratios, you could be headed for trouble. Rapid growth with excessive losses may be impossible to maintain. Excessive profits and no growth shows a business in decline who is susceptible to competitors.

The 40 rule for startups should be used as a guideline to check the health of your SaaS startup. It does not guarantee success, but it does provide a simple way to verify if your business is on the right track.

You probably wouldn’t think that a piece of furniture could have much of an effect on your health. As it turns out, however, there is one furniture item in your home that can dramatically impact your well-being: your mattress.

Supportive mattresses can not only help minimize problems like neck pain and back pain but they can also allow you to sleep better at night. Getting high-quality sleep on a regular basis is one of the best things that you can do for your health.

If you don’t believe it, all that you have to do is look at some of the latest research involving sleep. For instance, did you know that researchers have recently found that poor sleep habits can increase your risk of developing problems like high blood pressure, high cholesterol, and cardiovascular disease? It’s true. If you can find a way to sleep more soundly through the night, you can actually lower your risk of developing heart disease.

Interestingly, getting deep, restful sleep can also help you maintain a healthier weight. Researchers have found that people who aren’t getting enough sleep are more likely to be overweight. This most likely has to do with certain hormones in your body that are associated with sleep. The hormones that make you feel sleepy also make you feel hungry, which can cause you to overeat. It is also a lot harder to get motivated to exercise when you are sleep deprived.

Sleeping well at night can also help ease the symptoms of mental health conditions like anxiety and depression. The amount of sleep that you get can affect the levels of different chemicals in your body including the neurotransmitter serotonin. Getting enough sleep on a comfortable mattress is one of the best ways to support a healthy balance of chemicals like these in your body and your brain.

Studies have also shown that your risk of developing diabetes decreases if you get enough sleep each night. When you don’t get enough sleep, your hormones get out of balance. Stress hormones like cortisol go up while your insulin production decreases. This can make it harder to control your blood sugar, which can put you at an increased risk of developing type II diabetes. If you invest in a high-quality mattress that allows you to sleep better at night, you can dramatically reduce this risk.

When you consider that your health and well-being are both at stake, it is easy to see why a good mattress is such an important investment. Fortunately, there are supportive mattresses available on the market today in every price range. Even if you don’t have a lot of money to spend on a mattress, you should be able to find a model that is not only comfortable but also supportive.

If you have had your current mattress for a long time and you are having trouble sleeping, it is definitely worth thinking about buying a new one. Investing in a new mattress can go a long way toward helping you sleep better, which can have a positive impact on your health.

It has been noted that most people and industries prefer using corrugated pipes. This is because these pipes have a double wall duct thus offering greater compression resistance due to the great strength it possesses. The manufacturing of these pipes also requires very minimal raw material meaning that it has no impact to the environment. This therefore means that these pipes have a variety of advantages as compared to other pipes.
The advantages of these corrugated options include;

1. Long Life Performance

The first advantage of these pipes is that they have a long life performance as compared to other pipes meaning that they are very durable. The durability is as a result of the abrasion of the inner walls which is higher than the abrasion found on the walls of plastic pipes. The other advantage corrugated have over plastic pipes is that plastic pipes tend to have a very high resistance towards aggressive fluids and acids corrugated pipes on the other hand have low resistance towards aggressive fluids. Another aspect of durability is that these pipes have a double layer lining which ensures long life tightness thus increasing its longevity.

2. Light Weight

These pipes are known to be very light in weight but are very strong. This is because the strength is not measured by the thickness of the wall but is measured by the corrugated design on the outermost wall. In addition to this it is composed of less raw materials as compared to plastic pipes and solid pipes which are a bit heavier. These pipes also require less manpower when it comes to installation because of its light weight, they can also be easily installed in very constrained areas.

3. Little Or No Leakage

When it comes to these pipes leaking of joints is not likely to occur due to the fact that the pipes have a double layer wall hence increased joint tightness. The pipes are also installed in longer lengths than other plastic or solid pipes, this results into fewer joints meaning less infiltration.

4. Low Operational Costs

There are low operational costs when it comes to these pipes. For instance low transportation costs are low this is because they can be loaded into one truck as compared to plastic, solid and concrete pipes which are larger in size and require relatively higher transportation means. There is also less damage that is experienced during handling process and storage process and lastly during installation these pipes require no heavy duty equipment

5. They Are Very Flexible

These pipes are very flexible when it comes to environmental changes. They can easily withstand any environmental and climatic changes without breaking or cracking which makes them very efficient and safer to use compared to other types of pipes since flexibility automatically translates to safety.

6. They Have No Negative Environmental Effects

These pipes have no effect on the environment due to the raw materials used to construct them. They also raw materials that can be recycled which makes them environmentally friendly

These are the advantages of these pipes that you should know.