What are the top reasons why startups developing B2B products fail?

AN Ancaprecub asked on 27 May 2020, 14:13
2 answers / 507 views / 6 votes
RI
Having gone through the B2B startup already that failed, the very brief answer is that long sales cycles kill you. Businesses are conservative: they will want you to prove that you made your product work. It is reliable, and that you will be available. That means that getting your first customer is going to be hard, because you haven't proved any of this.
KA
Having gone through one B2B startup already that failed, the short answer is that the long sales cycles kill you.

1. Businesses are often conservative: they want you to prove that you have made your product work, that it is reliable, and that you will be around. That means getting your first customer is hard, because you haven't proved any of this.

2. Business typically have multiple people who must sign off on a purchasing decision. That means that if you have one internal champion who is willing to take a risk of you, he or she will have colleagues who are conservative. They will make all the objections raised in 1. and will oppose your champion.

If you want to make your B2B startup succeed, offer incredible value, and line up champions who have the power to get you actually purchased. If you can't get a good letter of intent (LOI) out of them, with explicit pricing and conditions, I wouldn't bother even starting to developing your product.

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