Enterprise software building is a fundamentally different process than building a consumer business. There's no focus on virality or $10/mo app subscriptions. It's about developing mission critical tools to resolve complex operational bottlenecks for mid-market and enterprise buyers.
The single largest risk early stage B2B founders face is designing a product that fails to account for enterprise procurement, security, or workflow friction and wasting 9 months + $200k in engineering time before launch
In an operator led venture environment, you flip the script: design partners secure first, the software product follows.
The below is a detailed look at the 4 step process to de-risk enterprise software development and secure early market traction.
Step 1: Rethink "Customer Discovery" as a Design Partner Program
Cold outreach emails asking enterprise directors to "try out a new tool" are destined to end up in the trash bin. Enterprise buyers want a particular software product customized to solve a specific business problem.
Instead of sending out these generic requests, identify 15-20 target decision makers who fit your customer persona and invite them to an exclusive Design Partner Program. This email should state that you're co-developing a solution to solve [vertical specific problem] and that you're looking for 5 industry pioneers to join you on this journey. The value proposition is that in exchange for 30 minute bi-weekly design feedback calls, these partners will receive exclusive lifetime pricing, feature prioritization, and white-glove onboarding.
Step 2: Ask about Process, not Features
During your 1:1 discovery calls with prospective design partners, focus on eliciting information about their workflow and the pain points they experience as opposed to asking them what features they want to see in your product. Prospects will quickly start to describe a wish list of ideal features that they will likely never pay for.
Instead ask questions like:
Can you walk me through how your team currently handles [X]?
Where are you having to make manual data re-entries or work around [X] process?
What is the opportunity cost or financial impact of [X] process failure or delay?
Unless a prospect can put a price tag on the wasted time, inefficiency, or risk of inaction, the problem your software solves isn't worth an enterprise contract value (ACV).
Step 3: Build it Manually Before You Build it Digitally
Before you spend any engineering resources on building software tools to automatically perform operations, execute the process yourself with a concierge execution model.
If you're building an enterprise invoice reconciliation tool, for example, manually process the first 3 bills for the prospect using script and spreadsheet backend code and present the prospect with the final output. This allows you to show the prospect that your software can effectively streamline their operations while also testing for fit.
It's much easier for enterprise buyers to sign a contract and commit to a pilot program if they've already seen a live demonstration of how your software can solve their unique use case.
Step 4: Convert Design Partners into Paid Pilot Agreements
The final step to de-risking your enterprise software product is by transitioning your design partners into paid pilot agreements. The goal is to get a commitment from them to move forward with a pilot program for your enterprise software product. The most prudent way of doing this is through a Paid Pilot Agreement or LOI. The language should specify success metrics and a timeframe (usually 60 or 90 day pilots). It should also include conversion terms for an ACV based on the success metrics.
Summary Checklist for B2B Founders
To de-risk enterprise GTM flywheel mechanics, make sure your pre-launch engineering spend has achieved the following 4 milestones:
[ ] Positioned early prospects as co-designers of your product
[ ] Mapped their manual processes + quantified the financial impact of the pain point
[ ] Validated your product assumptions with a manual concierge prototype
[ ] Converted them into a signed paid pilot agreement with success metrics
The Bottom Line
Enterprise momentum is less about rapid development and more about rapid alignment with the specific needs of the enterprise buyer. By securing design partners, you're able to develop software that is built for adoption from day 1.
