Where to Sell | Don’t be a Tool

VC’s are looking to invest in enterprise.  Angels are looking to invest in enterprise.  Why are 75% of startups consumer facing?  Could it be that people who invest their money to make money for a living are wrong?  Doubtful but possible.  It is more likely that we as entrepreneurs do not have problems in the enterprise world and thus do not understand it or are as interested in it.  Meanwhile the problems we have on a day to day basis are most important to… well.. us.

Interesting.  People talk about disruption.  The new hot, trendy thing, but is it new?  No it is just a new name for the same principals.  One VC was speaking about how the enterprise is ripe for disruption for a couple of more years.  But then what?  There will no longer be any room for disruption?  I doubt it thought it may be ‘more’ difficult to squeeze your way into $$.  Think SAP and other big business.  If only I knew some of those industries, I could kick some butt.  Right?

Another interesting conversation with a VC related around being a tool.  Hah.  Maybe he meant it literally and figuratively.  Anyhow.  Don’t just be a tool for an agency or a group doing work for the end consumer.  Yes it can be lucrative, however when the squeeze is on and budgets are tightening or you have a high price point, at the end of the day the fees charged to the end consumer won’t go up just because they choose a new tool.  Therefore each dollar spent on your product is a dollar off their profit.  Think of SEOMOZ.  They are tools right?   Nah..  They are a community first and they have a massive network effect.  For them tools are a way of monetizing a captive audience.

So yeah, don’t be a tool and if you are out to solve a real need try enterprise solutions, you might actually make some money and get funded.

 

Author: Adam Perkins

Startup Entrepreneur from Madison Wisconsin.