Netic founder Sarah Nahm said entrepreneurs must understand small businesses before attempting to sell products to large enterprises [1].
This approach prioritizes product-market fit and customer empathy over rapid scaling. By focusing on a smaller, more accessible segment, founders can refine their offerings based on real-world usage before facing the complex procurement requirements of major corporations.
Nahm said she started with HVAC companies in her own home [2]. This strategy allowed her to befriend early customers and establish a feedback loop that directly informed the development of the Netic platform [2]. By integrating the needs of these small operators, she was able to shape the product to solve actual pain points rather than theoretical ones [3].
"You can’t sell to big enterprises until you understand small ones," Nahm said [1].
According to Nahm, the ability to pivot quickly is a primary advantage of working with small businesses. Large enterprises often have rigid requirements and long sales cycles, barriers that can stifle a young startup that has not yet perfected its core value proposition [1].
By befriending early customers and letting them influence the product's direction, Nahm said that founders build a more resilient product [2]. This method ensures that when a company eventually targets its larger target market, it does so with a proven tool and a deep understanding of the industry's fundamental needs [3].
“"You can’t sell to big enterprises until you understand small ones,"”
This strategy represents a shift away from the 'top-down' sales approach, where startups chase high-contract-value enterprise clients immediately. By utilizing a 'bottom-up' methodology, companies can reduce the risk of building features that do not serve the end-user, effectively using small businesses as a laboratory for enterprise-grade innovation.
