Startups and IT Buyers
The Wall Street Journal recently wrote “Tech Startups Struggle to Close Deals with IT Buyers” – and it is a compelling read:
Yet startup products and services for enterprises, while more accepted than a few years ago, still face significant resistance on the path toward revenue, CIOs and industry analysts say.
“I won’t take a risk on something that isn’t from a proven enterprise technology company,” especially for key functions, such as sales, human resources, cybersecurity or even office email, said Ms. Johnston. “Some startups are just so cheap or free, you’re nervous to go with it. What if they go out of business?”
I’ve spent my whole career working for technology startups, and part of that career has been convincing enterprises and enterprise IT to trust us with their business. The Wall Street Journal accurately describes the challenges – and as with the quote above, the self-inflicted wounds. Counter-intuitively, a low or free price can be a negative when your customers don’t understand how you make enough money to sustain your business.
Startups who don’t build sustainable models are really hurting themselves. It is critical to build a sustainable business for your customers’ sake so that you can invest and grow. Your customers will thank you for it – because they want you to succeed and make your product and service even better.
Of course there’s more to it than that. You have to understand your customer, where they’re coming from, and how you can help. You have to build credible plans to deliver. And you have to build a track record of success – which is how we’ve approached it at BP3.
This is a good moment for me to thank the many corporations that have entrusted their process and decision management solutions to BP3, or leveraged Brazos UI Enterprise – your investment in our services and products has helped us build a company that I hope you can be proud to work with.