Aug 21, 2024

When can startups start selling to enterprise companies? - Ch. 5

1. When can a startup start selling to enterprises?

Jason from SaaStr says if the startup can deliver what an enterprise customer needs within 90 days, then it can start selling to enterprise companies.

As a startup, it's common not to have a fully-featured product from day one. 

However, this shouldn't deter you from pursuing enterprise sales. If an enterprise customer shows interest in your product, you can still close deals even if you don't have everything they need yet. 

Enterprise sales is about delivering value, not just selling features. It’s about selling the solution to a customer’s critical business problem.

Even without having all of the features, you can close the deal with a promise to develop it quickly. It shouldn't take too long (<90 days).

However, be transparent about realistic development timelines. If the customer can wait, start enterprise sales even if the product isn't fully ready. This approach helps build relationships with enterprise clients early, potentially securing valuable partnerships and feedback for product development.

2. What if I can't fulfill all the customer's requirements at once?

Customers often claim all their needs are equally important. However, a skilled sales rep should conduct a thorough discovery call to uncover the underlying reasons for each requirement and assist the customer in prioritizing their needs.

During this process, the sales rep can eliminate some requirements by:

  1. Identifying problems that don't actually need solving

  2. Demonstrating how existing features or integrations can address certain needs

  3. Helping the customer in understanding how different products can work together to meet their goals

Evaluate the remaining requirements based on the customer's willingness to pay. If they hesitate or refuse to pay for feature development, it likely isn't as critical as presented.

When a feature requires further development, the sales rep must ensure clear communication between the product team and the customer. This involves:

  • Setting realistic development timelines

  • Updating the customer on progress

  • Facilitating discussions to refine requirements as needed

The goal is to balance meeting the customer's needs and maintaining a feasible development roadmap. This might mean phasing in features over time or finding creative solutions that satisfy the core need without extensive custom development.

3. Communicating with the product team

When a startup closes an enterprise deal, immediate communication with the product team is crucial. It's important to provide comprehensive information beyond stating, "The customer requested feature X." 

The product team needs a full picture, including:

  1. The customer’s core problem

  2. The context of the problem

  3. The customer's proposed solution or requirements

  4. For multiple problems/requirements:

    • Their relative importance and priority

    • Identifying any "deal breakers"

  5. The timeline for implementation

This information helps the product team to:

  • Understand the customer's needs completely

  • Assess the feasibility of requests within the timeframe

  • Propose alternative solutions if needed

  • Align development priorities with sales opportunities

Effective communication between sales and product teams ensures customer needs are accurately translated into product features, increasing the likelihood of successful deals and long-term customer satisfaction.

1. When can a startup start selling to enterprises?

Jason from SaaStr says if the startup can deliver what an enterprise customer needs within 90 days, then it can start selling to enterprise companies.

As a startup, it's common not to have a fully-featured product from day one. 

However, this shouldn't deter you from pursuing enterprise sales. If an enterprise customer shows interest in your product, you can still close deals even if you don't have everything they need yet. 

Enterprise sales is about delivering value, not just selling features. It’s about selling the solution to a customer’s critical business problem.

Even without having all of the features, you can close the deal with a promise to develop it quickly. It shouldn't take too long (<90 days).

However, be transparent about realistic development timelines. If the customer can wait, start enterprise sales even if the product isn't fully ready. This approach helps build relationships with enterprise clients early, potentially securing valuable partnerships and feedback for product development.

2. What if I can't fulfill all the customer's requirements at once?

Customers often claim all their needs are equally important. However, a skilled sales rep should conduct a thorough discovery call to uncover the underlying reasons for each requirement and assist the customer in prioritizing their needs.

During this process, the sales rep can eliminate some requirements by:

  1. Identifying problems that don't actually need solving

  2. Demonstrating how existing features or integrations can address certain needs

  3. Helping the customer in understanding how different products can work together to meet their goals

Evaluate the remaining requirements based on the customer's willingness to pay. If they hesitate or refuse to pay for feature development, it likely isn't as critical as presented.

When a feature requires further development, the sales rep must ensure clear communication between the product team and the customer. This involves:

  • Setting realistic development timelines

  • Updating the customer on progress

  • Facilitating discussions to refine requirements as needed

The goal is to balance meeting the customer's needs and maintaining a feasible development roadmap. This might mean phasing in features over time or finding creative solutions that satisfy the core need without extensive custom development.

3. Communicating with the product team

When a startup closes an enterprise deal, immediate communication with the product team is crucial. It's important to provide comprehensive information beyond stating, "The customer requested feature X." 

The product team needs a full picture, including:

  1. The customer’s core problem

  2. The context of the problem

  3. The customer's proposed solution or requirements

  4. For multiple problems/requirements:

    • Their relative importance and priority

    • Identifying any "deal breakers"

  5. The timeline for implementation

This information helps the product team to:

  • Understand the customer's needs completely

  • Assess the feasibility of requests within the timeframe

  • Propose alternative solutions if needed

  • Align development priorities with sales opportunities

Effective communication between sales and product teams ensures customer needs are accurately translated into product features, increasing the likelihood of successful deals and long-term customer satisfaction.

Continue reading

Enterprise Sales Playbook - Ch. 1

Prospecting - Ch. 2

Onboarding customers - Ch. 4

When can startups start selling to enterprise companies? - Ch. 5

How Relate closed the first five-figure deal through outbound sales - Ch. 6

Enterprise Sales Playbook - Ch. 1

Prospecting - Ch. 2

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