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In most scenarios, high-touch saas is harder to bootstrap. Your network will smooth out the friction of getting in the door, but there are other factors that ma
by dman7 6y ago
In most scenarios, high-touch saas is harder to bootstrap. Your network will smooth out the friction of getting in the door, but there are other factors that make this hard to bootstrap:
* Expensive headcount - high-touch sales requires sales, marketing and other GTM teams. Sales, especially, is very expensive.
* Customizations - enterprise customers will want additional features above and beyond what your MVP offers. This will require additional engineering/product/design resources
* Security audits - IT of the enterprise customer will want to see recent security audits which can range from $20K and up
* Stability guarantees - enterprise customers are wary of offloading their workflow to small startups that might go belly up. Having guarantees, such as VC funding, will acquiesce them.
A common path in B2B is to start with low-touch SaaS business (which is easier to bootstrap) & then move up-market.