8 ms·
enterprise is where the $ is but not as sexy.
by crxnamja 18y ago
enterprise is where the $ is but not as sexy.
- jasonlbaptiste 18y agoYup, but it's very possible to make it sexy. Hoping that changes soon.
- gamble 18y agoSure they have money, but it's not like you'll get any. Larger companies are much harder to sell to than small companies or consumers, and they hate dealing with startups. You might make $1 million on a single enterprise sale, but you'll have to spend 90% of that on your sales and support staff, and that one sale could take a year to close.
- jasonlbaptiste 18y agowell, i think this is broader than "enterprise". it encompasses SaaS + b2b software plays.
- acgourley 18y agoMy employer is a 20+ person startup selling to the enterprise market. We don't feel that they 'hate' dealing with us, although, our only competition is other startups. Even so, we get rave reviews about the level of service we bring to each contract. They are not used to seeing that from their large company vendors. It's true that selling is hard, but that is why we have an experienced sales staff. And yes, sales can take 6-12 months in the worst case, but I think you underestimate the number you can have in the pipeline at once and overestimate the cost to support each sale. One more note in defense of enterprise oriented startups: as a hacker, I don't find creating enterprise software to be less palatable than consumer software. The selling is compartmentalized in a sales dept, so it's not as if I'm the one jumping through the enterprise sales hoops. Obviously, if you're hoping to keep your company so small that you don't have a dedicated sales department, it's a much different story.
- gamble 18y agoMy feelings on this subject were less jaundiced before I'd been working with large customers for a few years. The first year or so was much easier - you're hitting all the easy sales, the ones that are geographically close, and the technically-sophisticated early adopters. After a while you've plucked the low-hanging fruit and each sale becomes progressively more difficult and expensive. Meanwhile, the support costs for existing customers accumulate and competitors proliferate. As a startup, it's easy to differentiate yourself from competitors by offering better-quality service. The difficulty lies in scaling up to a large number of customers.