Starting a Company? Focus on B2B SaaS!

Starting a Company? Focus on B2B SaaS!

I recently met with 2 incredibly talented recent college grads who were thinking about starting a company! YAAAAYYYY!!!!!!

They were in product-related roles at a larger tech startup getting great real world experience while brainstorming future business ideas.

We talked about a few consumer-focused products before we started on:

What would your current company pay for?

It’s a helpful question for thinking about:

  • big markets
  • must-have (paid for in a downturn) vs nice-to-have (first to go)
  • B2B software platforms

**Remember: your business idea doesn’t need to be unique!

Why Business-to-Business (B2B) Is Awesome

Yes, there are great companies that sell tech or physical products to consumers. But it’s a highly-competitive, very-tight-margin road.

There’s a reason why so many investors focus on B2B. It’s a great business model.

Why Investors Love B2B & You Should Too:

  • Companies have large budgets
  • Businesses are not as fickle as consumers (I say this as a fickle consumer!)
  • WAY more wiggle room with name, brand, user experience
  • Retention is easier with companies (multiple decisions makers, inertia)
  • Payback period on sales and marketing costs is favorable
  • Profit margins are large and scalable

BONUS: Here’s a great clip from David Sacks on the All-In Podcast (one of my fave podcasts) explaining why he focuses on B2B SaaS.

B2B SaaS Discovery Questions

With the magic of B2B SaaS in mind, here are some questions to consider about your current company:


With many tech companies doing layoffs, there’s a huge entrepreneurial opportunity!

Lots of people with extensive business experience are exploring new paths right now (voluntarily or with several months of severance).

If you’ve thought about starting something but haven’t come up with a compelling idea, analyzing company pain points or weak spots is a great first step.

Think: B2B!


What are other great discovery questions for B2B SaaS ideas?