They may not get as much buzz as the latest consumer start-ups, but B2B start-ups have a number of distinct advantages. Here are just a few.
There Is less Competition
As Chris Dixon warns, “If you are thinking of starting a nontransactional consumer start-up, be aware that you are entering what is perhaps the most competitive sector in tech in the last decade.”
Business Customers don’t Expect Stuff to Be Free
Unlike with consumer tech start-ups, the B2B business model is straightforward. If your product is valuable to businesses, they will pay actual money for it.
The Market Is Ripe for Innovation
As Jim Goetz of Sequoia Capital explains, the enterprise market is dominated by companies that are “large, slow, and flatfooted.” Innovative start-ups have a tremendous opportunity to be disrupters.
No. 1 on the Inc. 5000: Meet the Fastest-Growing Company in America
A No-Nonsense Guide to Starting Up
5 Common Startup Mistakes That Will Sink You Later
Every Startup Should Focus on These 4 Things
5 Tips to Keep Your Home-Based Business Legal
JILL KRASNY is the associate editor of Inc.com. Her work has appeared in Esquire, MTV, Mashable, and elsewhere.@jillkrasny