1. Reminded this morning about a phrase I learned from @marksolon - Elephant Hunting. This is when a startup focuses too early on selling to large enterprises.
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5. In the mean time, while you are trying to sell to a large enterprise your cash is running out. You are betting on that one large contract, one big Elephant to close, and if it doesn't you are out of cash.
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6. For all these reasons, typically, not always, but typically, it is much better to start with smaller / mid size customers, iterate and perfect your product, close smaller contracts, get feedback, and THEN move onto the large enterprises, once you have more proof and more cash
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What strategy will you suggest if the only buyers for startup product are enterprises and that too a small number of enterprises?
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It may not be a venture scale business. Go with a consultative sale.
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I shut down an endeavor because of this very mistake.
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I've worked this way for 15+ years and it's so true. The best part is that doing it well means it also generates huge revenue numbers to fund the development of the things elephants expect. It's also a lot of fun.
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Hey.. quit it. The memories are giving me the chills
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Spot on
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Smaller enterprises are usually very tight on cash! They have less to burn, although they may see the value. It becomes even harder if your competitor gets them first! Big enterprises are slow, unwilling, and reluctant to accept someone else may be able to do better.
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