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Agree completely, and I'd add that the sales cycle for a large enterprise customer can be a killer too. Generally speaking, for a large organisation, getting fr
by marcus_holmes 2y ago
Agree completely, and I'd add that the sales cycle for a large enterprise customer can be a killer too. Generally speaking, for a large organisation, getting from a product demo to a purchase order takes two years. This can be an absolute killer for startup cashflow - you need to keep an active sales presence with the customer for that entire time, doing regular meetings and presentations, before you'll see a cent from them [0].
The advantage is that they're generally not price-sensitive, and much less willing to switch to a competitor.
[0] I make this point every time I talk to a founder who plans on bootstrapping in this space, and their usual answer is that this won't take that long for them because $reason. It always takes this long.