What Challenges are faced by Startups Selling Enterprise Software?

  • Big companies don’t value stuff that is free, or cheap, so giving your product away only makes it more difficult to close a deal.
  • By definition a few people will love your innovative product, while the majority of the prospects will work to destroy your opportunity.
  • Enterprise Software buyers always need to figure out who your competitors are for them in order for them they can do a competitive procurement process.
  • Procurement and legal will eat Start Up sales for lunch, and bury them; unless they have experience dealing with an 80-page Master Services Agreement.
  • Start up sales doesn’t understand the political nature of large companies, so they go about things in a rather simplistic manner and wonder why you aren’t getting results
  • Startup sales experience a high burn rate during their uncertain sales cycle.
  • Startup sales get lots of “false positives” when dealing with big companies; they sell a pilot to an executive, feel really great about it, only to have something “change” along the way, which results in them shutting down the pilot.
  • The sales cycle for enterprise software sales is typically long and uncertain, while the buying cycle for the customer isn’t uncertain. Depending on who your customer is, what your product is, what time of year you are approaching them (and how strong of a relationship they have with your sales, you should be able to model out how much cash/time/resources it takes to bring in a deal.
  • Unless you had a ton of experience dealing with the enterprise, simply getting in the door can be really difficult
  • You are either a threat or something they don’t understand; either of which will result in them trying to eliminate you.
  • You waste money on trade-shows or advertising, which doesn’t pay off. Don’t do it. You will be told that you have to participate in large conferences, sponsor events, place ads in various trade journals; you will waste a ton of money.
One clap, two clap, three clap, forty?

By clapping more or less, you can signal to us which stories really stand out.