Loading...
Answers
MenuMy SaaS reduces legal risk for companies. Selling to a large company, what position should I target?
This question has no further details.
Answers
A little more context would be needed to understand this question but I would simply say you are risk mitigation.
When it comes to the sharing personal experience is very important so I will share with you what has been my personal experience.
Learn how to navigate the complexity of the industry
There’s no getting around the fact that complexity is the operative word when it comes to large construction enterprises. These companies have sprawling supply chains, numerous channel partners, geographically-scattered job sites, safety concerns, government regulations, and that’s just scratching the surface. Being a successful B2B sales professional in any industry requires attaining specific and detailed knowledge about the target industry’s particulars, but reps who are targeting construction professionals need to know that their customers’ concerns may be wide-ranging.
Prepare for wide variation in your customers’ situations
Similarly, it’s critical to understand that there is no one-size-fits-all construction enterprise, and this means you will have to tailor your sales strategy depending upon the type of prospect you are engaging. For instance, if you sell a software solution, you may come across a prospect whose technological sophistication resembles that of a cutting-edge Silicon Valley firm. Or, you may be selling to a company that relies solely on filing and maintaining paper invoices. There are construction businesses that are still dealing with the effects of the 2008 financial crisis, as well as those that are in a stronger financial position than before the crash.
Connecting with these prospects hinges on understanding their value proposition to their customers. If their main draw is that they employ technological solutions to ensure all equipment is used as effectively as possible, they’re going to have very different needs than if they tout the quality of their construction materials. It’s up to you to learn how they speak to their customers, so that you can decide how best to speak to them.
Be an exceptional educator
Be prepared to spend an extended amount of time educating your clients about your product and its value when you are selling to professionals in the construction industry. Because these leaders work in an industry that is massively complex they are often laser-focused on their specific responsibilities. This may mean that they are more unfamiliar with various solutions than decision makers in some other sectors. Maintaining patience without dipping into condescension is paramount. Focus on clear communication, and always listen to their insights concerning the potential implications of your product on their regulatory, legal, logistical, or safety processes.
Prioritize building trust
Trust is integral to the very nature of the construction industry. Leaders of these companies know that a developer is not going to hand them a contract to build a 60-story skyscraper unless they have established a solid base of trust, so that’s what they’re looking for from their vendor partners as well. Embrace any opportunity to learn more about their industry and its specific challenges. Try to get value-added content published in trade journals and other trusted publications. Publish relevant white papers as well, and always ensure that your claims are backed up by data to establish your authority.
Know how to overcome price objections
Many construction firms face an everyday reality of operating with very thin net margins. A study of 41 firms by the NYU Stern School of Business found an average margin of just over 6.7%. This means that many of your prospects are going to raise price objections, because they are concerned of the effects that any added expenditures will have on their bottom line. Always remain committed to your prospect’s value, and demonstrate to them that inaction now will be more expensive over the long term than making a purchase.
Prove your dedication to an ongoing partnership
For many construction industry leaders relationship building is the most integral part of an ongoing partnership. If they believe you are devoted to helping them succeed, then you’ll have likely invested in a relationship that will pay dividends years into the future. You can achieve this by constantly educating yourself about their company and their industry well after the initial sale, and by being a reliable resource they can turn to time and time again.
For further queries you can consult me.
You want to target the VP of Operations.
Approach the CEOs directly as they can take the decision.
Related Questions
-
What are some tried-and-true metrics for enterprise/ARR-based SaaS companies?
In my experience, the longer sales cycle requires more attention. The metrics will be unique to your business, but you can't go wrong with these: Marketing & Sales Metrics Look at metrics that will help you scale and project growth, and then accelerate opportunity to close velocity #s and conversion rates of marketing qualified leads (MQLs) #s, time, and conversion rates of MQLs to sales qualified leads (SQLs) #s, time, and conversion rates of SQLs to opportunities #s, time, and conversion rates of opportunities to sales Customer Success Metrics An ARR SaaS business may have a guaranteed 12 month customer lifespan, but that doesn't guarantee the customer actually uses the product and won't churn at renewal time. Measuring product usage will help you discover patterns that cause churn, increase the perceived value of the product, and improve the customer experience. Financial Metrics Each Reporting Period (I'd recommend monthly) look at Values & Rate of Change Customer Acquisition Cost Average Value of a Customer look at Values, % of total, & Rate of Change Revenue from New Subscriptions Revenue from Renewal Subscriptions At the early stage, businesses will see new Subscriptions significantly outpace renewals. As the business matures, the % of total ARR from New Subscriptions will begin to decline, assuming churn rates are good.RE
-
What legal precautions can I take to make sure nobody steals my startup idea?
I've discussed ideas with hundreds of startups, I've been involved in about a dozen startups, my business is at $1M+ revenue. The bad news is, there is no good way to protect ideas. The good news is, in the vast majority of cases you don't really need to. If you're talking to people about your idea, you could ask them to sign an NDA ("Non Disclosure Agreement"), but NDAs are notoriously hard to enforce, and a lot of experienced startup people wouldn't sign them. For example, if you asked me to sign an NDA before we discussed your Idea, I'd tell you "thanks, but no thanks". This is probably the right place though to give the FriendDA an honorable mention: http://friendda.org/. Generally, I'd like to encourage you to share your Ideas freely. Even though telling people an idea is not completely without risk, generally the rewards from open discussions greatly outweigh the risks. Most startups fail because they build something nobody wants. Talking to people early, especially people who are the intended users/customers for your idea can be a great way to protect yourself from that risk, which is considerably higher than the risk of someone taking off with your idea. Another general note, is that while ideas matter, I would generally advise you to get into startup for which you can generate a lot of value beyond the idea. One indicator for a good match between a founder and a startup is the answer to the question: "why is that founder uniquely positioned to execute the idea well". The best way to protect yourself from competition is to build a product that other people would have a hard time building, even if they had 'the idea'. These are usually startups which contain lots of hard challenges on the way from the idea to the business, and if you can convincingly explain why you can probably solve those challenges while others would have a hard time, you're on the right path. If you have any further questions, I'd be happy to set up a call. Good luck.DK
-
Where to incorporate a new software as a service busines?
I'll keep try to keep this answer brief, but there are several factors and nuances that can be discussed in more depth. Where you decide to incorporate partly depends on what your future goals are with your company. Companies that plan to seek venture capital or go public typically choose Delaware as the state of incorporation, and usually choose a C-Corp. Delaware has a very well developed body of law surrounding corporate governance and that provides comfort and more certainty to future VC investors. If you're not planning to seek VC money any time soon, an LLC is a smart decision because of the tax benefits it can provide to you as the owner. It sounds like you want to grow your company on your own without outside financing. If that's the case, I would recommend forming your LLC in California. Regarding California vs. Delaware, one benefit to forming your LLC in California is that you can avoid paying a registered agent fee which can cost anywhere from $100-200 a year. If you plan to seek venture capital down the road, you can reincorporate in Delaware.JI
-
What are the SaaS B2B expectations when paying annually - annual paid annually or annual paid monthly? Is a discount necessary (i.e. 20%)?
Most Software as a service vendors generally don't book annual deals except in highly specialized cases. Most customers prefer to be able to cancel/change anytime they choose. Also, deals done "offline" end up actually often being more trouble than they are worth to administrate especially for a $2988 ticket. Generally, companies don't view prepaying for SaaS products a year in advance as a "convenience" (to them) so if the debate is internal (not customer driven), I'd set this debate aside until it's requested by the customer. Most customers will request a discount to pre-pay annual service. Happy to talk this through with you in a call, to work through the specifics of your situation in more detail.TW
-
How can one file an EIN without an SSN/ITIN?
You should retain a lawyer, or another qualified individual, to act as the third party designee for the corporation (if you do not have a partner or co-owner who is a US citizen). The designee should prepare Form SS-4 (Application for Employer Identification Number) and Form 8821 (Tax Information Authorization) for the corporation’s president to sign and return.MM
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.