The Revenge of the Long Tail
Andrew Beebe

I work closely with solar contractors in my consulting practice so I’d like to add a little nuance to this discussion. Much of the very long tail (sub $8M in revenue annually) is eschewing the boutique loan providers and SaaS software, opting instead to work with cash or customer who bring their own financing. They are using much simpler software solutions. The middle market (above $10M), in many cases, struggles with the transaction costs associated with working with the boutique loan providers and/or choosing the right combination of software products. As margins continue to compress, some business owners are beginning to scrutinize their soft costs more critically, especially in these areas. Service providers should definitely consider themselves on notice.

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