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Crescendus™- Small Companies: Don't waste time with Fortune 500 (Sep 11, 2016 Tip of the Day)

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Crescendus™
Crescendus™

While it is tempting to pursue Fortune 500 or Fortune 1000 accounts, we recommend small companies and startups to stay away. This presentation highlights some of the underlying factors for this recommendation.

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Crescendus™ Tip of the Day: Sep 11, 2016 © Crescendus™ 2016. All Rights Reserved. www.crescendus.com Small Companies- Don't waste time with Fortune 500! Some of the reasons for not pursuing Fortune 500 (or Fortune 1000) accounts are as follows: • Lengthy decision times, with no clear decision maker (esp. in matrix environments). • Fortune 500 preference for established companies with sound financials,track record and ability to survive next 5-10 yrs. Small companies are considered as high risk. • Skepticismover small companies, esp. by Fortune 500 purchasing departments.If they do engage you, it is only to extract deep discounts, and for negotiating your price points with other established vendors. • Skepticismover startups and small companies' abilitiesto deliver product & R&D roadmaps,including next generation product upgrades and post sales support. • Even if you do get a Fortune 500 account, they end up being low margin and end up draining considerable resources. They also promise something big later in return for large upfront concessions, and most of these promises never actually materialize.

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Crescendus™- Small Companies: Don't waste time with Fortune 500 (Sep 11, 2016 Tip of the Day)

  • 1. Crescendus™ Tip of the Day: Sep 11, 2016 © Crescendus™ 2016. All Rights Reserved. www.crescendus.com Small Companies- Don't waste time with Fortune 500! Some of the reasons for not pursuing Fortune 500 (or Fortune 1000) accounts are as follows: • Lengthy decision times, with no clear decision maker (esp. in matrix environments). • Fortune 500 preference for established companies with sound financials,track record and ability to survive next 5-10 yrs. Small companies are considered as high risk. • Skepticismover small companies, esp. by Fortune 500 purchasing departments.If they do engage you, it is only to extract deep discounts, and for negotiating your price points with other established vendors. • Skepticismover startups and small companies' abilitiesto deliver product & R&D roadmaps,including next generation product upgrades and post sales support. • Even if you do get a Fortune 500 account, they end up being low margin and end up draining considerable resources. They also promise something big later in return for large upfront concessions, and most of these promises never actually materialize.