ex post facto

Developing a sales strategy is critical for software-as-a-service (SaaS) startups. The first step in developing a sales strategy is to build a robust market segmentation. I’ve used data from the US Census to develop a segmentation that reveals some surprising facts about the SMB market and may help inform your startup’s sales strategy.

Chart 1: 98% of businesses in the US employ fewer than 100 people.

98% of businesses in the US employ between 1 to 4 people. This large segment of businesses provides ample testing ground for product development, market fit validation and creation of word-of-mouth marketing.

Chart 2 : Only 1,000 companies employ greater than 10,000 employees and 12,409 employ greater than 500 employees.

Compared to the small business part of the market, there are far fewer potential customers – only about 12,500 – but these customers are worth orders of magnitude more in revenue.

Charts 3 & 4:…

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