When Your Customer Says "We May Just Build It Ourselves"
image from: https://www.youtube.com/watch?v=I3XCer1vRfI

When Your Customer Says "We May Just Build It Ourselves"

In the early days, you will hear this a lot.

My advice: Be “Cool”.

What I mean is, we all go through this, at least, a lot of us.

When you first build a start-up, it’s often feature-poor, with little-to-no brand. Internal IT teams often think they can built it themselves.

And perhaps they can — today. But then they’d have to maintain it. And iterate on it. And keep it current. And ultimately, be competitive not with just your offering as it is today — but how it will be over the course of the next 5–10 years.

Once you are established, once you have a brand … most of your prospects and customers will know they can never commit the long-term resources to “competing” with the 200–2000 releases and updates you’ll do over the coming decade. The millions, and then tens of millions, and then hundreds of millions you’ll spend annually on R&D.

Until then, “building ourselves” is a valid alternative to a new, very simple product from a new vendor

So …

Tell them you’ll support them either way, that you are committed to innovation. And close them.

Odds you lose them later to an internal offering, if you out-innovate and out-hustle their internal team?

Low.


Shaun Banta

Problem solving with Google Cloud

7 年

Short and to the point, but ultimately true in the long term commitment necessary to maintain internal developments, mostly irregardless of the development platform. Thanks for the post Jason M. Lemkin. Lowell Hall

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Vishnu Raju Datla

Accelerating DevSecOps @salesforce @AutoRABIT

7 年

We had several prospect/customers told us that, esp some SI's (esp. since we are a productivity & automation product). It's been a few years, some of them have bought our product but no one has been able to develop something like @AutoRABIT, even thought they had very deep pockets and resources. The key is the focus and the core of the organization and how every employee of a startup lives and breaths the vision and goals. E.g. - if customer/prospect is a healthcare company they cannot do great billing software or a financial company cannot build a great ERP. Eventually as Jason M. Lemkin said, they cannot get to the 2000th release since they cannot compete with 100 customers (1000's users) giving feedback and helping developing the product + they would not have startup employees (who are special) + overcome the bureaucracy.

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Melissa Lim

CMO | Investor | Women in Tech Excellence Award Finalist | TechNation UK Global Talent Visa | Women that Built Globant Awards | Amazon Hot New Release Author

7 年
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