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The global B2B software market is on a remarkable trajectory, projected to reach $829.34 billion by 2031.
This growth is fueled by an increasing demand for user-friendly and cost-effective software solutions.
The competition in the B2B software space is fierce, with countless brilliant companies vying for attention.
Managing Director UK & Europe CIBC Innovation Banking.
Key factors to consider:
Can the business achieve low churn?
B2B software businesses typically enjoy low capital expenditure, with gross margins ranging from 60-80%.
To maintain this stickiness, it is vital to foster high-quality, accessible, and accuratecustomersupport.
Engaging closely with customers not only helps in retaining them but also opens avenues for upselling and contract renewals.
The software should solve real problems, making it indispensable to customers.
Can the solution be easily understood?
B2B software should never be overly complicated to explain.
The solution must be easy to understand, especially for non-technical buyers or investors.
When presenting the solution, it is important to avoid jargon and complex explanations.
Customers and potential investors are looking for simplicity and ease.
They should leave the pitch thinking, How did I ever get by without this product?
Why are good reporting practices crucial?
One of the most significant hurdles businesses face when seeking investment is poor reporting.
That decision to spend investor capital needs to be backed up with strong decisional data and reporting though.
What is the end goal?
Investors are primarily interested in returns.
They have a fiduciary duty to achieve strong financial returns on their investments.
It is important to be prepared to discuss the exit strategy from the beginning.
Understanding the path to exit is crucial for investors as they consider their eventual payout.
Planning for it early and setting the ground work is crucial for the business as well.
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The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc.
