How do you know, in under a minute, that a company's Ideal Customer Profile (#ICP) is problematic?
Here's one example about that.
Three different conversations this week, with three different B2B startup companies.
Completely different industries and markets.
The common denominator -- tiny target market.
The biggest of the three has their ICP targeting 750 companies.
The other two companies target 550 & 450 companies, respectively.
This target market is way too small. Achieving sustainable growth over multiple years will be extremely hard to impossible.
The only way to achieve good annual growth, even if just in the first few years, is by:
1. Selling a high ticket product or service; plus --
2. Setting an annual growth goal that can be achieved with a very small number of deals.
From my experience, a reasonable number of target customers (companies) for a B2B company, from their ICP, should be no fewer than a few thousand companies. Anything below that is problematic.
What's your experience like? Have you seen a B2B company that managed to build a large business, with tens or millions of dollars in annual revenue, with a target market of under 1,000 companies?
Note that I'm not talking about the number of customers achieved. In this case, 1,000 signed customers is an impressive number. I'm asking about the total number of customers the company targets!
CEO @ Maverick, I specialize in nurturing organic B2B sales growth. 🌱 My expertise lies in mastering the art of predictable client acquisition. 🎯 Utilizing outsourced sales solutions to drive success. 📊
7moAre you capturing the online research trend? Boost your sales skills with these strategies for higher revenues! Share your thoughts on reaching buyers effectively and improving visibility. 🚀 #SalesSuccess Zoltan A. Vardy