Being a CEO of an early stage startup is tough. You have to find a way to efficiently reach customers and convince them buy your product. At the same time, you are continuously tweaking the product, battling to prove product-market fit. At the back of your mind, you know you have limited time to demonstrate strong market traction to raise the next funding round successfully.
At some point you might be approached by a large potential enterprise customer who expresses genuine interest in buying your product. Most often, this large enterprise is not renowned for being on the cutting edge of technology (think Bank of America, Staples, Comcast, State Farm, etc.). Obviously, this may seem like an incredible opportunity: First, it is flattering that a well-recognized enterprise is interested in your product and is willing to dedicate time and money to try it. Second, signing a deal with such a large customer can generate meaningful revenue, especially for an early stage startup. No more need to chase all these small customers. One single deal with this enterprise and you can exceed the plan for the year. Sounds promising, no?
