I’ve had conversations with several different companies recently about expending resources to try to attract larger enterprise clients. What I’ve discovered (too many times) through experience is that it’s a very expensive, time consuming, and extremely hard way to be profitable. It usual takes investment in more expensive outbound salespeople, MUCH longer sales cycle, and much lower probability of doing business together, along with a lot more internal resources to jump through the hoops that larger enterprise clients require. And seems to be a more cut-throat space amongst highly paid sales people.
Swimming in the Middle Market
But, that’s also why I get so excited about the middle market business customers. Historically, they have been underserved by traditional services and software. Usually it’s where the lion’s share of the market actually exists. And they can now easily (and low cost to you) find you via the internet. They can self-serve (without needing full-service implementation teams to support them). AND the margins tend to be much better in the end because they don’t demand volume discounts either. They also tend to be MUCH more appreciative of your service.
Middle market is really where all the fun is at. Which is why I love to swim there.