Starting a Company? Focus on B2B SaaS!
I recently met with 2 incredibly talented recent college grads who were thinking about starting a company! YAAAAYYYY!!!!!!
They were in product-related roles at a larger tech startup getting great real world experience while brainstorming future business ideas.
We talked about a few consumer-focused products before we started on:
What would your current company pay for?
It’s a helpful question for thinking about:
must-have (paid for in a downturn) vs nice-to-have (first to go)
B2B software platforms
**Remember: your business idea doesn’t need to be unique!
Why Business-to-Business (B2B) Is Awesome
Yes, there are great companies that sell tech or physical products to consumers. But it’s a highly-competitive, very-tight-margin road.
There’s a reason why so many investors focus on B2B. It’s a great business model.
Why Investors Love B2B & You Should Too:
Companies have large budgets
Businesses are not as fickle as consumers (I say this as a fickle consumer!)
WAY more wiggle room with name, brand, user experience
Retention is easier with companies (multiple decisions makers, inertia)
Payback period on sales and marketing costs is favorable
Profit margins are large and scalable
B2B SaaS Discovery Questions
With the magic of B2B SaaS in mind, here are some questions to consider about your current company:
What are major problems in your workflow?
What would help your company make more money?
What tools do you use but really dislike (because old, not helpful, incomplete)?
What would your company spend money on even when making budget cuts?
What is your company not spending on now but will be in 3-5 years?
With many tech companies doing layoffs, there’s a huge entrepreneurial opportunity!
Lots of people with extensive business experience are exploring new paths right now (voluntarily or with several months of severance).
If you’ve thought about starting something but haven’t come up with a compelling idea, analyzing company pain points or weak spots is a great first step.
What are other great discovery questions for B2B SaaS ideas?