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Startups: We're creating a mission-critical hospital communication system. Given its our startup's 1st app, how do we convince Execs we'll be around in 12mths?
DA
DA
Deepak Alse Radhakrishna, Simplifying problems, products and projects answered:

Here's a few things I've done for B2B engagement with a startup.

1. Engage with their primary IT services/solutions vendor for a three-way deal that commits the vendors support for your product for a 3-5 year timeframe - This will mean a margin erosion, but you'll benefit from having a larger partner and the execs will be comforted by the fact that there's a longer term support vision.
2. Put your code and design in escrow - There are many source code escrow options and you should negotiate the contracts carefully and with good legal advise.
3. Build your pricing mechanism in ways that stagger/cycle payments over a longer period of time - This is tougher when you are starting up, but it maybe a point on the negotiating block that will help the vendor managers/contract teams lean towards you.

Your 'Go To Market' strategy should envision as many scenarios as possible and build a response case around each. There is no single silver bullet that will convince all execs who deal with startups.

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