"Mr. Money lives on focus island"* I regularly talk to B2B SaaS founders about the best revenue channel to start with. They usually have 3 dreams: A) The “product led growth” dream 🧑💻 Tons of small customers who come by themselves through the website. Problem: high churn, no expansion potential. B) The “someone else is selling for me “ dream 🤝 Finding sales partners who have access to the market and sell my solution. Problem: no commitment, complicated contracts, no direct access to customers. C) The “Big fish” dream 🐠 Closing big enterprise deals with a lot revenue potential. Problem: long sales cycle, many stake holders, high customization effort. Dreams are good, but revenue is better for a startup! ➡️ The best target group up to 1M ARR revenue are mid market companies! Here you have the best correlation between sales cycle, sales potential and product feedback. Focus and learn to sell to this customer group in the beginning. Start selling "up-market" later and do partner business opportunistically. Happy selling 🚀 *The saying is from my friend Johannis Hatt he's right and a great business angel on top. ____________________________ Sharing my experience as an entrepreneur and angel investor. Investing in early stage B2B SaaS startups. Happy to connect 👋
Great "collection". Dream no. 4: one silver bullet which improves the status quo over night 🙄
Dream big, but prioritize revenue generation for long-term success! 🚀
It is good to dream, that can open up our minds. But you should not get stuck in the dream stage. To generate revenue you must get the sales done. I agree that the mid market segment is a good starting point.
Great advice
Solid advice based on real-world experience. Mid-market focus resonates well. Tony E. Kula
Thank you for your clear words Tony E. Kula. If one starts a business, these 3 dreams are often there, but invisible. For me it's a good typology to check and ask about during consulting processes.
That's insightful advice! Mid-market companies seem like the sweet spot for success. Keep up the great work! 🚀 Tony E. Kula
Great insights! Focusing on revenue channels is crucial for B2B SaaS startups.
Managing Director & Founder at Denizen
9mois selling to mid-market and enterprise so different? I would say the sales process is almost the same, just that the onboarding and monetization impact with enterprise is slower...