✳flâneur — a map of the web's best reading

Enterprises vs SMBs - Bottom Up by David Sacks

sacks.substack.com · 1,534 words · saved by 1 readers

One of the first decisions that a B2B SaaS startup has to make is who its initial customer is going to be. Does the startup go after small businesses (SMBs), enterprises, or something in between (mid-market)? There’s an Old School view and a New School view on this. The Old School view says that the larger the customer, the more valuable the customer. Hence startups should seek to go upmarket as soon as they can. But the New School view is less focused on contract size and more focused on contract speed. SMBs, and in their extreme form other startups, are the best customers because they are the easiest to close. Velocity trumps size. If the priority is to find product-market fit, that can happen fastest selling to other startups. Let’s take each of these views in turn. The traditional view in B2B software is that Enterprise is the ideal market. The largest companies have the biggest budgets, which translate into the biggest annual contract values (ACVs). This provides the highest ROI o

Enterprises vs SMBs Who’s the Better Customer for B2B SaaS Startups? David Sacks Jan 21, 2020 46 1 1 Share One of the first decisions that a B2B SaaS startup has to make is who its initial customer is going to be. Does the startup go after small businesses (SMBs), enterprises, or something in between (mid-market)? There’s an Old School view and a New School view on this. The Old School view says that the larger the customer, the more valuable the customer. Hence startups should seek to go upmarket as soon as they can. But the New School view is less focused on contract size and more focused on

Explore this link on the map →

saved by

related reading