The unfortunate truth.
Selling SaaS is hard. Many founders make it harder for themselves.
By selling to enterprise Accounts from the get-go.
The Temptation
The temptation to target enterprise is undeniable. You can see the appeal. The thought of landing one big account vs chasing hundreds of small ones.
The bragging rights that come with a big logo. It does help marketing the product. To both investors and potential customers.
The Downside
However, there are downsides to this approach.
Speed
Enterprise deals tend to drag on, taking much longer to close. And can significantly slow you down as a start-up to test for repeatability.
Very Different Expectations
Enterprise customers want to lead. Because they believe they have it all figured out due their extensive experience. Where as SMEs are often more open to be guided. As they look to you for expertise.
The enteprise expectations aren’t misguided. After all, they’re paying the big bucks. And have been around longer. This difference can divert you away from innovation.
Smarter Approach
It is almost always better to: 👉 Start with SMEs. 👉 Test for repeatability. 👉 And keeping the churn down.
This gives you options. While keeping the burn low. Cashflow crunch is likely to not happen. As you start generating revenue with these SMEs.
You now have something that works for a wider audience. Than just a handful of customers. Which is critical to figure out all the teething issues. And arrive at solution that is likely to be a value add.
Once you’ve scaled this you’re ready to go up market.
If you're a founder or CEO eager to move faster and seek tailored strategies for your unique challenges, don't navigate this journey alone. Reach out to me. Together, we can dissect, refine, and optimize your enterprise's trajectory to withstand the tests of time and innovation. Let's make your vision not just a goal, but an impending reality.
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