Tellus EHS HazCom — Go-To-Market Plan
Executive Summary
This plan charts a bootstrapped path from 0 to $1M ARR (~$83K MRR) for Tellus EHS HazCom, targeting small and mid-market businesses that need OSHA HazCom compliance. The strategy is built for a small founding team (not a solo operation), emphasizes capital efficiency, and leverages the HazCom 2024 compliance deadline (Jan 2026 for pure substances, Jul 2027 for mixtures) as a market tailwind.
Key numbers:
| Metric | Value |
|---|---|
| Target ACV | $2,400–$5,400/year ($199–$449/month) |
| Customers needed for $1M ARR | 185–417 |
| Target timeline to $1M ARR | 24–30 months |
| SMB HazCom TAM (US) | ~$50–100M |
| Addressable businesses | 500K–1M small businesses needing SDS software |
Market Validation
What We Know
| Signal | Evidence |
|---|---|
| Product demos | 3 businesses (chemical mfg, auto shop, pest control) — all positive |
| OSHA inspector | Confirmed HazCom needed by "almost all businesses" |
| Market size | 5M+ workplaces covered by OSHA HazCom; 500K–1M need dedicated software |
| Regulatory tailwind | HazCom 2024 final rule creates urgent compliance deadline |
| Competitor pricing | Cheapest competitor (EHS Insight) starts at $4,600/year — we undercut by 2x+ |
| PE interest | VelocityEHS explored $2B sale; Sphera sold for $1.4B; 20–30x revenue multiples |
What We Don't Know Yet
| Gap | How to Close |
|---|---|
| Will businesses pay? | Close first 5 paying customers (Phase 1) |
| Optimal price point | A/B test $149/mo vs $199/mo vs $249/mo |
| Sales cycle length | Track days-to-close for first 20 deals |
| Churn rate | Measure after 90 days (SMB churn is 8.2x higher than enterprise) |
| Best acquisition channel | Test SEO, Google Ads, partnerships, and outbound in parallel |
Competitive Landscape
Where We Fit
Enterprise ←───── Price ─────→ SMB
│
Cority │
Sphera │
│
VelocityEHS │
Intelex │
│
Dakota ($7K/yr) │
EHS Insight ($4.6K) │
SafetyAmp ($4.8K) │
│
│ ◄── GAP: No HazCom-specific product
│ under $3,600/year
│
★ Tellus ($2,400–$5,400/year)
│
SafetyCulture │ (horizontal, not HazCom-specific)
($24/user/mo) │
Competitive Advantages
| Factor | Tellus | Competitors |
|---|---|---|
| Price | $199–$449/month | $383–$583+/month (EHS Insight, Dakota) |
| Setup time | Minutes (self-serve) | Days/weeks (onboarding calls) |
| Contract | Month-to-month | Annual commitment typical |
| HazCom focus | Purpose-built for OSHA 6-step | Generic EHS with HazCom as add-on |
| AI features | SDS parsing, PPE recommendations, hazard summaries | Limited or enterprise-only |
| Industry configs | Pre-configured for 11+ industry types | One-size-fits-all setup |
| Mobile | Mobile-first design | Desktop-first, mobile as afterthought |
Pricing Strategy
Revised Tier Structure
The previous $79/month entry point is too low — it positions us as a toy product and leaves money on the table. Competitors charge $383+/month. Our pricing should reflect real compliance value while still undercutting the market.
| Plan | Price (Monthly) | Price (Annual) | Target | Key Limits |
|---|---|---|---|---|
| Starter | $99/month | $990/year (save $198) | Micro businesses, 1–5 employees | 1 site, 50 chemicals, 100 SDS, 5 users |
| Standard | $199/month | $1,990/year (save $398) | Small businesses, 5–25 employees | 3 sites, 250 chemicals, unlimited SDS, 15 users |
| Professional | $349/month | $3,490/year (save $698) | Growing businesses, 25–100 employees | 10 sites, unlimited chemicals, 50 users, API access |
| Business | $449/month | $4,490/year (save $898) | Multi-site operations, 100+ employees | Unlimited everything, SSO, custom branding, priority support |
Annual discount: 2 months free (pay 10, get 12).
Expansion revenue: Overage charges for additional sites ($29/site/month) and users ($9/user/month) beyond tier limits. This drives net revenue retention above 100%.
Why This Pricing
- $99 Starter — Low enough for impulse sign-up; validates willingness to pay. Still 50% cheaper than cheapest competitor ($4,600/yr).
- $199 Standard — The workhorse tier. Target ACV = $2,400. Need ~417 customers at this tier for $1M ARR.
- $349 Professional — For businesses that grow into multi-site. Target ACV = $4,200. Need ~238 customers.
- $449 Business — For larger operations. Comparable to EHS Insight's $4,600/yr entry point but with more features.
Blended ACV Target: $3,000
At $3,000 blended ACV → ~333 customers for $1M ARR.
Target Customer Segments
Tier 1: Primary (Highest urgency, fastest sales cycle)
| Segment | Est. TAM | Why They Buy | ACV Target |
|---|---|---|---|
| Auto body & repair shops | 50,000+ shops | Solvents, paints, oils; OSHA fines terrify them | $199/mo ($2,400/yr) |
| Pest control companies | 30,000+ firms | EPA FIFRA + OSHA HazCom double compliance burden; field workers need mobile | $199–$349/mo |
| Small manufacturers | 250,000+ firms | Multiple chemicals, OSHA inspection risk, TRI reporting | $349/mo ($4,200/yr) |
| Print & sign shops | 30,000+ shops | Inks, solvents, UV chemicals; compliance feels overwhelming | $199/mo |
Tier 2: Secondary (Growing demand)
| Segment | Est. TAM | Why They Buy | ACV Target |
|---|---|---|---|
| Labs (dental, medical, veterinary) | 100,000+ | Busy professionals, need simple digital solution | $199/mo |
| Dry cleaners & laundry | 30,000+ | Perchloroethylene, single-chemical compliance need | $99/mo |
| Agriculture & farming | 200,000+ | Pesticides, fertilizers; EPA + OSHA overlap | $199/mo |
| Cleaning & janitorial services | 100,000+ | Multiple cleaning chemicals; mobile workforce | $99–$199/mo |
Tier 3: Strategic (Higher ACV, longer cycle)
| Segment | Est. TAM | Why They Buy | ACV Target |
|---|---|---|---|
| EHS consultants | 10,000+ | Multi-client management; our platform is their tool | $449/mo ($5,400/yr) |
| Construction firms | 100,000+ | Contractor safety + chemical compliance | $349/mo |
| Education (schools, universities) | 100,000+ | Science lab chemicals, custodial chemicals | $349/mo |
ICP (Ideal Customer Profile) for Phase 1
Auto body shops and pest control companies in Texas and California with 10–50 employees, currently using paper binders or spreadsheets for HazCom compliance.
Why this ICP:
- Texas and California have the most OSHA-regulated businesses
- California adds Prop 65 requirement (more pain = more urgency)
- 10–50 employees = enough pain to pay, small enough for fast decision
- Auto/pest control = high chemical exposure, high OSHA inspection frequency
Go-To-Market Phases
Phase 1: First 25 Paying Customers (Months 1–4)
Goal: Validate product-market fit and willingness to pay.
Team: 2 people (founder + 1 sales/marketing hire).
| Week | Action | Target |
|---|---|---|
| 1–2 | Re-contact 3 original demo businesses; ask for the sale | 1–2 paying customers |
| 2–3 | Ask each customer for 3 referrals | 6–9 warm leads |
| 3–6 | Door-to-door visits: 30 auto shops + pest control companies in local area | 30 conversations, 5–8 trials |
| 4–8 | Launch landing page + Google Ads ($1,000/month) | 10–15 inbound leads |
| 6–12 | Close deals from all channels | 20–25 paying customers |
| 8–16 | Publish 8 SEO blog posts (HazCom compliance guides, OSHA deadline content) | Organic traffic foundation |
Metrics to track:
- Conversations → Demos → Trials → Paying customers (conversion funnel)
- Days from first contact to payment
- Top 3 objections heard
- Which tier customers choose
Marketing spend: $2,000–$3,000/month (Google Ads + basic tooling).
Revenue target: $5K–$6K MRR ($60K–$72K ARR) by end of Phase 1.
Phase 2: Scale to 100 Customers (Months 4–12)
Goal: Build repeatable sales motion; start inbound engine.
Team: 3–4 people (founder, 1 SDR/AE, 1 content/marketing, 1 part-time customer success).
| Activity | Channel | Budget/Month | Expected Output |
|---|---|---|---|
| Google Ads | Paid search | $3,000–$5,000 | 30–50 leads/month |
| Content/SEO | Blog, guides, compliance checklists | Time investment | 100+ organic visits/month by Month 8 |
| Webinars | "How to Comply with HazCom 2024" | $500 (tools) | 20–40 registrants per webinar, 2x/month |
| Partnerships | Safety consultants, insurance agents | Revenue share (10–20%) | 5–10 referrals/month |
| Referral program | Customer referrals | 1 month free credit | 3–5 referrals/month |
| Outbound | Cold email to ICP list | $500 (tools) | 10–20 conversations/month |
| Product-led growth | Free SDS lookup tool / compliance quiz | Development time | 50+ signups/month |
Key content pieces:
- "OSHA HazCom 2024: What Changed and What You Must Do by January 2026"
- "The Small Business Owner's Complete Guide to HazCom Compliance"
- "SDS Management: Paper Binder vs. Software — Cost Comparison"
- "What Happens When OSHA Walks In: A Real Inspection Story"
- "HazCom Compliance Checklist for [Auto Shops / Pest Control / Manufacturers]" (industry-specific)
Webinar topics:
- "HazCom 2024 Deadline: What Small Businesses Need to Do NOW"
- "Stop the Paper Binder: Digital HazCom Compliance in 30 Minutes"
- "OSHA Fines Exposed: How $15,000 Violations Happen and How to Prevent Them"
Partnership strategy:
- Recruit 10–20 safety consultants as referral partners (10–20% recurring commission)
- Approach 5 workers' comp insurance agents (compliance reduces their claims risk)
- Join 3 industry associations (auto repair, pest control, manufacturing)
Marketing spend: $5,000–$8,000/month.
Revenue target: $25K–$30K MRR ($300K–$360K ARR) by end of Phase 2.
Phase 3: Scale to $1M ARR (Months 12–30)
Goal: Predictable growth machine; hire first dedicated sales rep.
Team: 5–7 people (founder, 2 sales reps, 1 marketing lead, 1 customer success, 1–2 engineers).
| Activity | Channel | Budget/Month | Expected Output |
|---|---|---|---|
| Google Ads + retargeting | Paid search + display | $8,000–$12,000 | 80–120 leads/month |
| Content engine | Blog (4x/month), YouTube, case studies | $2,000 (freelance writers) | 500+ organic visits/month |
| Industry events | 4–6 trade shows/year (auto, pest control, mfg) | $2,000–$4,000/show | 20–40 leads per show |
| Partnerships at scale | 30+ active referral partners | Commission-based | 15–25 referrals/month |
| Product-led growth | Freemium SDS lookup, compliance calculator | Engineering time | 100+ PLG signups/month |
| Outbound sales | 2 SDRs with cold email + LinkedIn | $3,000/rep | 20–30 demos/month |
Key growth levers for this phase:
- Annual contracts — Push annual billing (2 months free). Target 60%+ annual mix for cash flow predictability and lower churn.
- Expansion revenue — Upsell customers from Starter → Standard, Standard → Professional. Target 10%+ expansion MRR.
- Reduce churn — Invest in onboarding (first 30 days critical). Target < 5% monthly logo churn. Use in-app usage alerts.
- Industry-specific landing pages — Separate pages for auto shops, pest control, manufacturers, labs, etc. with industry-specific testimonials.
- Case studies — Publish 2 per quarter from paying customers.
Marketing spend: $15,000–$25,000/month.
Revenue target: $83K+ MRR ($1M+ ARR) by Month 24–30.
Financial Model: Path to $1M ARR
Customer Acquisition Trajectory
| Month | New Customers | Total Customers | Churn (4%/mo) | Net Customers | MRR (@ $250 avg) | ARR |
|---|---|---|---|---|---|---|
| 1 | 3 | 3 | 0 | 3 | $750 | $9K |
| 3 | 8 | 18 | 1 | 17 | $4,250 | $51K |
| 6 | 15 | 60 | 2 | 58 | $14,500 | $174K |
| 9 | 20 | 115 | 5 | 110 | $27,500 | $330K |
| 12 | 25 | 185 | 7 | 178 | $44,500 | $534K |
| 18 | 35 | 330 | 13 | 317 | $79,250 | $951K |
| 24 | 40 | 500 | 18 | 400+ | $100K+ | $1.2M+ |
Assumes 4% monthly logo churn (typical SMB), $250 blended monthly ARPU, gradual ramp in acquisition.
Unit Economics Targets
| Metric | Target | Benchmark |
|---|---|---|
| Blended ACV | $3,000 | SMB SaaS: $1,000–$5,000 |
| CAC (Customer Acquisition Cost) | < $1,000 | SMB target: $500–$2,000 |
| LTV (Lifetime Value) | > $6,000 | At 24-month avg lifetime |
| LTV:CAC ratio | > 3:1 | Healthy: 3:1+ |
| CAC payback period | < 8 months | Median for $1M–$5M ARR companies |
| Monthly logo churn | < 4% | SMB average: 3–7% |
| Net revenue retention | > 105% | From expansion + upsells |
| Annual billing mix | > 60% | Reduces churn, improves cash flow |
Revenue Composition at $1M ARR
| Source | % of Revenue | Monthly |
|---|---|---|
| Starter ($99/mo) | 15% | $12,500 |
| Standard ($199/mo) | 45% | $37,500 |
| Professional ($349/mo) | 25% | $20,800 |
| Business ($449/mo) | 10% | $8,300 |
| Expansion (overages) | 5% | $4,200 |
| Total | 100% | $83,300 |
Expense Budget at $1M ARR Run Rate
| Category | Monthly | Annual | % of Revenue |
|---|---|---|---|
| Team (5–7 people) | $40,000–$55,000 | $480K–$660K | 48–66% |
| Marketing & Sales | $15,000–$25,000 | $180K–$300K | 18–30% |
| Infrastructure (AWS, tools) | $3,000–$5,000 | $36K–$60K | 4–6% |
| Total | $58K–$85K | $696K–$1.02M | 70–100% |
Breakeven: At $1M ARR with lean operations, the business should be near breakeven or slightly profitable. Profitability improves rapidly above $1M as fixed costs are absorbed.
Team Plan
Current → Phase 1 (Months 1–4)
| Role | Who | Focus |
|---|---|---|
| Founder/CEO | You | Product, sales, strategy |
| Sales + Marketing | Hire #1 | Outbound, Google Ads, content |
Phase 2 (Months 4–12)
| Role | Who | Focus |
|---|---|---|
| Founder/CEO | You | Product roadmap, key accounts, partnerships |
| Account Executive | Hire #1 | Full-cycle sales, demos, closing |
| Content Marketer | Hire #2 (or contractor) | Blog, SEO, webinars, social |
| Customer Success | Part-time / founder | Onboarding, retention, upsells |
Phase 3 (Months 12–30)
| Role | Who | Focus |
|---|---|---|
| Founder/CEO | You | Strategy, partnerships, fundraising decisions |
| 2x Account Executives | Hire #1 + #3 | Demos, closing, quota: 8–10 new customers/month each |
| Marketing Lead | Hire #2 (promoted or new) | Demand gen, events, partnerships |
| Customer Success Manager | Hire #4 | Onboarding, retention, expansion revenue |
| Engineer(s) | Hire #5–6 | Product improvements, PLG features, integrations |
Compensation guideline (bootstrapped):
- Early hires: $60K–$80K base + equity (0.5–2%)
- Sales reps: $50K–$60K base + uncapped commission (15–20% of first-year ACV)
- Contractors for content/design: $2,000–$4,000/month
Sales Playbook
The 60-Second Pitch
"Every business that uses chemicals — solvents, cleaners, pesticides, anything — is legally required by OSHA to maintain a HazCom program. That includes safety data sheets, labels, employee training, and a written plan. Most small businesses use a paper binder that's outdated or incomplete. If OSHA inspects you, that's a $15,000+ fine per violation.
Tellus replaces that binder with software. Upload your chemical products, we auto-pull the safety data sheets, flag regulatory issues, and generate your HazCom plan. Your employees access everything on their phones. If OSHA walks in, you show them the app.
It's $199 a month, no contract, cancel anytime. Most businesses set it up in under an hour. Want to see a quick demo?"
Objection Handling
| Objection | Response |
|---|---|
| "We already have a binder" | "Great — when was it last updated? OSHA requires current SDSs for every chemical on-site. If even one is missing, that's a citation. Tellus keeps it current automatically." |
| "We've never been inspected" | "OSHA conducted 36,000+ inspections last year. HazCom is the #2 most-cited violation. The average first fine is $15,643. Insurance won't cover it." |
| "We can't afford it" | "It's $199/month — less than $7/day. One OSHA fine is $15,000+. And your time managing compliance manually is worth more than $7/day." |
| "We'll think about it" | "Understood. The HazCom 2024 rule takes full effect January 2026. Businesses that aren't compliant by then face updated penalties. Can I send you a compliance checklist so you know where you stand?" |
| "We use VelocityEHS" | "VelocityEHS is great for large enterprises. For a business your size, it's typically $5,000+/year and takes weeks to set up. Tellus is built specifically for businesses like yours — simpler, faster, and half the price." |
Sales Process
Step 1: Discovery (5 min)
→ "How many chemicals do you use?"
→ "Where do you keep your SDSs?"
→ "Have you ever had an OSHA inspection?"
Step 2: Demo (15 min)
→ Show inventory, SDS auto-fetch, label generation, mobile access
→ "Let me show you what OSHA sees when they ask for your HazCom program"
Step 3: Trial or Close (5 min)
→ Offer 14-day free trial with full onboarding
→ Or close directly: "Ready to get set up? It takes about 30 minutes."
Step 4: Onboarding (within 48 hours)
→ Help customer add their first 10 products
→ Show them mobile access
→ Schedule 30-day check-in
Marketing Strategy
Channel Mix (Budget Allocation)
| Phase | SEO/Content | Google Ads | Events | Partnerships | Outbound | PLG |
|---|---|---|---|---|---|---|
| Phase 1 | 30% | 40% | 0% | 20% | 10% | 0% |
| Phase 2 | 35% | 30% | 10% | 15% | 5% | 5% |
| Phase 3 | 25% | 25% | 15% | 15% | 10% | 10% |
SEO Strategy
Target keywords (high intent):
- "OSHA HazCom compliance software" (low competition, high intent)
- "SDS management software small business"
- "HazCom 2024 compliance requirements"
- "digital SDS management"
- "OSHA chemical inventory software"
Industry-specific keywords:
- "auto body shop OSHA compliance"
- "pest control chemical compliance"
- "manufacturing HazCom program"
- "lab safety data sheet management"
Content calendar (Phase 2):
- 4 blog posts/month (SEO-optimized compliance guides)
- 1 webinar/month (lead generation)
- 1 case study/quarter (social proof)
- 1 industry guide/quarter (gated lead magnet)
Product-Led Growth (Phase 3)
- Free SDS lookup tool — Search any chemical, get SDS preview. Captures email for full access.
- HazCom compliance quiz — "Is your business OSHA-compliant? Take the 2-minute quiz." Scores and recommends plan.
- Free tier (evaluate carefully) — Limited to 5 chemicals, 1 user. Converts to paid for real use.
Partnership Strategy
Referral Partner Types
| Partner Type | Value to Them | Our Offer | Expected Volume |
|---|---|---|---|
| Safety consultants | Recurring revenue on client base they already serve | 20% recurring commission for customer lifetime | 3–5 referrals/month per active partner |
| Insurance agents (workers' comp) | Reduced claims risk = better loss ratios | 15% commission + compliance reports for their underwriting | 2–3 referrals/month per agent |
| Industry associations | Member benefit, sponsorship revenue | Discounted pricing for members + sponsorship fees | 5–10 leads per association per quarter |
| OSHA training providers | Natural upsell after training | 15% commission + co-branded materials | 2–5 referrals/month |
| Accountants/bookkeepers | Value-add service for business clients | 10% commission | 1–2 referrals/month |
Target: 30 Active Referral Partners by Month 18
At 3–5 referrals/month per partner → 90–150 leads/month → 15–25 new customers/month (at 15–20% close rate).
Key Metrics Dashboard
Weekly (Founder Reviews)
- Conversations with prospects
- Demos completed
- Trials started
- Deals closed / revenue added
- Objections logged
Monthly (Team Reviews)
| Metric | Phase 1 Target | Phase 2 Target | Phase 3 Target |
|---|---|---|---|
| New MRR | $1,500 | $4,000 | $8,000+ |
| New customers | 5–8 | 15–20 | 25–35 |
| Churn rate | < 5% | < 4% | < 3.5% |
| Trial → Paid conversion | 25%+ | 30%+ | 35%+ |
| Demo → Trial conversion | 50%+ | 50%+ | 50%+ |
| CAC | < $500 | < $800 | < $1,000 |
| NPS | Establish baseline | > 40 | > 50 |
Quarterly (Strategic Reviews)
- LTV:CAC ratio (target > 3:1)
- Net revenue retention (target > 105%)
- Channel ROI by source
- Expansion MRR %
- Annual billing mix %
Risk Mitigation
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| SMB churn too high (> 5%/mo) | High | Critical | Invest in onboarding; require 30-day check-in; usage alerts; annual billing push |
| HazCom 2024 deadline gets extended | Medium | High | Diversify value prop beyond compliance deadline (efficiency, insurance discounts, audit readiness) |
| Competitor launches SMB product | Medium | Medium | Speed to market; customer relationships; industry-specific depth; switching costs increase over time |
| CAC too high for SMB | Medium | High | Double down on SEO/content (lower CAC); PLG features; referral partnerships |
| Founder burnout (wearing too many hats) | High | Critical | Hire sales/marketing person by Month 2; don't try to do everything alone |
| Free trial abuse (sign up, export, cancel) | Low | Low | Track usage; require credit card for trial; build sticky workflows |
What NOT To Do
| Trap | Why It Fails |
|---|---|
| Build more features before selling | You'll build the wrong things; sell what you have |
| Target Fortune 500 / enterprise | 6–18 month sales cycles, RFPs, procurement, legal review |
| Compete on features with VelocityEHS | They have 641 employees and $70M revenue — compete on simplicity and price |
| Offer a free plan too early | Free users don't give actionable feedback; they have different needs than paying customers |
| Hire a VP of Sales before $500K ARR | Too expensive, wrong skillset for founder-led phase |
| Spend > 30% of revenue on paid ads before PMF | Optimize conversion first, then pour fuel on it |
| Try to serve all industries at once | Pick 2–3 ICPs, dominate them, then expand |
| Skip annual billing push | Monthly-only = higher churn, worse cash flow, lower LTV |
Milestones & Decision Points
| Milestone | Target Date | Decision |
|---|---|---|
| First paying customer | Month 1 | If no → pivot pricing or ICP |
| 10 paying customers | Month 3 | If no → reassess product-market fit |
| $5K MRR | Month 6 | Hire AE #1; increase ad spend |
| $15K MRR | Month 9 | Hire marketing lead; launch partnership program |
| $30K MRR | Month 14 | Hire AE #2 + CSM; evaluate raising capital |
| $50K MRR | Month 18 | Consider seed round OR stay bootstrapped |
| $83K MRR ($1M ARR) | Month 24–30 | Evaluate: bootstrap to profitability vs. raise Series A for accelerated growth |
The Fundraising Decision at $1M ARR
At $1M ARR with healthy metrics (LTV:CAC > 3:1, churn < 4%), you have two paths:
Path A: Stay Bootstrapped
- Grow at 50–80% annually
- Profitable by $1.5M ARR
- Full ownership, full control
- Reach $3–5M ARR in 3–4 years
Path B: Raise Seed ($1–3M)
- Accelerate to $3M ARR in 12 months (3x growth)
- Hire sales team of 5–8 reps
- Launch enterprise tier
- Target Series A at $5–8M ARR
- EHS SaaS valuations: 20–30x revenue for leaders
Immediate Action Items (This Week)
-
Re-contact the 3 demo businesses — Ask for the sale. Offer $99/month Starter or $199/month Standard with 14-day free trial.
-
Set up Stripe billing — Be ready to take credit cards today.
-
Create a simple landing page — One page: headline, 3 benefits, pricing, "Start Free Trial" button. No perfection needed.
-
Write the first blog post — "OSHA HazCom 2024: What Small Businesses Must Do by January 2026". Publish immediately.
-
Post a job listing — Sales/marketing hire #1. Part-time OK initially. Look for someone with SMB sales experience, ideally in safety or compliance.
-
Set up Google Ads — $30/day targeting "OSHA HazCom compliance software" and "SDS management small business".
Long-Term Vision: Beyond $1M ARR
The 3-3-2-2-2 Growth Path
| Year | Revenue | Customers | Team Size |
|---|---|---|---|
| Year 1 | $300K–$500K ARR | 100–170 | 3–4 |
| Year 2 | $1M–$1.5M ARR | 330–500 | 6–8 |
| Year 3 | $3M–$4.5M ARR | 1,000–1,500 | 15–20 |
| Year 4 | $6M–$9M ARR | 2,000–3,000 | 30–40 |
| Year 5 | $12M–$18M ARR | 4,000–6,000 | 50–70 |
Exit Potential
EHS SaaS companies command premium valuations:
- Sphera: $1.4B acquisition (Blackstone, 2021)
- Intelex: $570M acquisition (Fortive, 2019)
- VelocityEHS: explored $2B sale (2023)
- Typical multiples: 15–30x revenue for growing EHS SaaS
At $10M ARR with strong growth → potential valuation of $150M–$300M.
The EHS SaaS market is growing at 10–12% CAGR with active PE consolidation. This is a good market to build in.