There has been something of a de facto rule software companies have adhered to over the past few decades: focus on selling to large businesses.
This dogma has existed for several reasons. First, acquiring customers is expensive and the traditional marketing channels used for customer acquisition like Google Adwords and Facebook have skyrocketed in cost. So, the only way to have a viable business with high sales and marketing costs is to sell contracts valued in the hundreds of thousands of dollars. Second, larger companies are highly incentivized to adopt new technologies, given that the cost of being on an outdated technology system could potentially mean losing millions of dollars a year.
We’ve seen some incredible companies build multi-billion-dollar businesses on the backs of enterprise customers, from Oracle to Snowflake. But as we look ahead to the next decade, selling to small and medium-sized businesses may, in fact, be one of the biggest untapped opportunities for tech companies.
This is an excerpt from a guest post that was published on Forbes. Read the entire blog, here.
Published — Feb. 7, 2020