Enterprises vs SMBs - Bottom Up by David Sacks
sacks.substack.com · 1,500 words · saved by 3 readers
Who’s the Better Customer for B2B SaaS Startups?
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…
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