small, medium-sized businesses

also referred to as: small, medium business · smb · smbs

32 statements across 25 episodes · 12 bullish · 4 bearish · 19 people on the record · first statement Aug 21, 2017 by Matt Rissell · across every show →

Everything said about small, medium-sized businesses, oldest first

Aug 21, 2017 bullish
Prediction Not checkable as stated
Rissell: Best-of-breed point solutions with seamless integrations will win in SMB SaaS
“The ones that I actually think are going to win in the marketplace are those that solve, ah, one problem. They're the best in breed solution. And then what they do is they seamlessly integrate with, ah, other applications that provide a solution.”
Matt Rissell Aug 21, 2017 ▶ 4:56 Three Non Obvious Lessons Learned Selling to SMBs with Xero and Friends
Oct 9, 2018
Insight
Grace: Nail SMB and end users before expanding to enterprise
“If you are selling to both enterprise and SMB, then I think just like anything else, nail the hell out of SMB first before you try to scale up into enterprise, because that is actually where the truism of, you know, like, oh, just follow the end user and don't…”
Merci Grace Oct 9, 2018 ▶ 32:21 Insider's Guide To Building Great Product w/Merci Grace, Slack's First Head of Product
Jan 2, 2019 neutral
Insight
Enterprise Sales Require Slow Discovery Rather Than Transactional Demos
“When we're selling to an SMB, it's very transactional. It's about demoing the tool and demonstrating utility. When you're selling upmarket, you are you have a selling process where you want to slow things down and go through a process of discovery.”
Darrell Benatar Jan 2, 2019 ▶ 20:50 Going Upmarket, How To Keep Growing When Your Buyer Is No Longer Your User
Sep 19, 2019 positive
Assertion Not checkable as stated
Lawrence: Promoted SDRs ramp 600% faster than external SMB sales hires
“In fact, when I look at my performers across SMB, the ones that came in through the SDR org, like, hands down, the most successful people. Right? You already know that they're a culture fit. You're sure of the competence fit. And they ramp 600% more quickly th…”
Jennifer Lawrence Sep 19, 2019 ▶ 29:10 How to Hire a Great VP of Sales with SaaStr + Duo Security
Oct 8, 2020
Insight
Shah: Fortune 1000 buyers tolerate poor usability via expensive consultant armies
“Now, in the Fortune 1000 market, that's not that big a deal. Usability, yeah, people like it, It's not a huge deal because they have armies of consultants that can do implementations. They have the budget, they have pain tolerance, which an SMB just does not h…”
Dharmesh Shah Oct 8, 2020 ▶ 14:01 On Launching a Second Product with Dharmesh Shah, CTO / Co-Founder HubSpot
Oct 8, 2020 neutral
Insight
Shah: SMBs sacrifice best-of-breed features for the convenience of unified suites
“Most customers, in my mind, especially in SMB, Would sacrifice some best of breedness, so to speak, for the convenience of having a single support phone number to call, a single UI that you have to learn.”
Dharmesh Shah Oct 8, 2020 ▶ 20:45 On Launching a Second Product with Dharmesh Shah, CTO / Co-Founder HubSpot
Feb 18, 2021 bullish
Insight
Inbound marketing and freemium make SMB software customer acquisition viable
“Our thesis was really obvious in retrospect that you could dramatically drop tack by using consumer-like marketing techniques, inbound marketing, content marketing, freemium to get to these people.”
Brian Halligan Feb 18, 2021 ▶ 4:30 Brian Halligan, CEO and Co-Founder at HubSpot: The Secrets to $1B ARR ... And Beyond!
Jul 26, 2022 positive
Insight
Botteri: Self-serve product experience is non-negotiable for SMB SaaS
“Self-serve when it comes to products is non-negotiable for SMB.”
Philippe Botteri Jul 26, 2022 ▶ 5:13 7 Secrets to a Successful SMB GTM Strategy with PayFit and Accel | SaaStr Software Community
Jul 26, 2022 positive
Insight
Zocchetto: Transparent pricing prevents drop-off and protects NPS during price hikes
“So we decided not to over optimize pricing so that it can just fit the requirements of the mass, and so that it's, you may think that you are losing money on the table, but you're not. When you have a transparent and simple Pricing structure. You know, you jus…”
Firmin Zocchetto Jul 26, 2022 ▶ 21:59 7 Secrets to a Successful SMB GTM Strategy with PayFit and Accel | SaaStr Software Community
Jul 26, 2022 positive
Insight
Zocchetto: SMB SaaS hits a ceiling without B2C-style brand awareness
“At the beginning, it may not be a problem because there are so many prospects out there that applying all good B to B marketing, reaching out with outbound can be great. But at some point, you reach a level where if you don't have the great brand awareness tha…”
Firmin Zocchetto Jul 26, 2022 ▶ 25:19 7 Secrets to a Successful SMB GTM Strategy with PayFit and Accel | SaaStr Software Community
Oct 13, 2022 positive
Insight
Janz: SMB SaaS companies should target CAC payback under 12 months
“If you're targeting SMBs, you will likely have higher churn, and in these cases you should aim for something closer to 12 months or less, but obviously it depends, so these are just some, ah, some rules of thumb.”
Christoph Janz Oct 13, 2022 ▶ 24:25 Growth vs. Efficiency: How to Weatherproof Your SaaS Startup for Tougher Times | Christoph Janz
Oct 18, 2022 positive
Insight
Shah: SMB software combines enterprise monetization with consumer market scale
“Beauty of SMB is that you have the kind of old fashionedness of enterprise, which is you can charge money for software, but you have the scale of consumer where there's millions of them out there to be served.”
Dharmesh Shah Oct 18, 2022 ▶ 5:55 The Secrets to Scaling with HubSpot's Founders Dharmesh Shah and Brian Halligan and SaaStr's CEO
Oct 18, 2022 positive
Assertion Not checkable as stated
Shah: HubSpot won through an all-in-one suite, not a killer feature
“There was no killer app. Everything that we had in our product existed. There were better products with great companies behind them. The value that we brought was the fact that we made it simple for these SMBs to actually get into the internet, get in the game…”
Dharmesh Shah Oct 18, 2022 ▶ 15:33 The Secrets to Scaling with HubSpot's Founders Dharmesh Shah and Brian Halligan and SaaStr's CEO
Dec 2, 2022 negative
Disclosure
Matthew: Accel SMB-Focused SaaS Companies Struggle with Retention Versus Enterprise
“In terms of gross retention, we're seeing varying degrees of success of gross retention across different customer segments, meaning SMB in this environment is more challenged than enterprise. And our companies that are exposed to SMB in particular are having a…”
Arun Matthew Dec 2, 2022 ▶ 34:05 Accel, Iconiq & Salesforce Ventures: "Where Venture Is Right Now: Gritty & Much Harder" at G2 Reach
Dec 8, 2022 neutral
Assertion Contradicted
Rangan: The average SMB uses 248 business applications
“The average number of business applications that a small, medium business has is 248.”
Yamini Rangan Dec 8, 2022 ▶ 5:00 Secrets to SMB at Scale with HubSpot CEO Yamini Rangan and SaaStr CEO Jason Lemkin
Dec 29, 2022
Disclosure
DigitalOcean Uses Free-to-Paid Conversion Points for Sales-Assisted Expansion
“If an SMB, it's that conversion of the FTO or free trial offer to pay that creates an uplift in, in overall customer value. And that, that point is a very key inflection where we expand via sales assisted, if you will, motion with more use cases, Multi-product…”
Cliff Bockard Dec 29, 2022 ▶ 10:15 Big Numbers from Small Customers: How DigitalOcean Accelerated at Scale | DigitalOcean SVP, Revenue
Dec 29, 2022
Assertion Supported
Bockard: 14 Million New SMBs Are Created Globally Every Year
“And the compounding effect is that we have, you know, fourteen million of new SMBs that are created globally every year. So if you kind of look at that, you know, from a perspective of, hey, there's forty three million developers out there, and that's obviousl…”
Cliff Bockard Dec 29, 2022 ▶ 3:04 Big Numbers from Small Customers: How DigitalOcean Accelerated at Scale | DigitalOcean SVP, Revenue
Jan 3, 2023 negative
Insight
Mehta: Enterprise sales leaders face a massive adjustment at SMB startups
“If you are an SMB business hiring for someone that's done multi-million dollar deals at great startups, it's gonna be a huge adjustment. Can it be done? Sure. But that's not the most natural path.”
Dini Mehta Jan 3, 2023 ▶ 11:31 SaaStr CRO Confidential:Hiring a Great VP of Sales Today Sam Blond + Former Lattice CRO Dini Mehta
Mar 3, 2023
Assertion Not checkable as stated
Benchmark: Enterprise reps ramp in five months, SMB in two
“Typically we see like a five month ramp for an enterprise sales rep and for SMB mid market is typically around sort of your two to three months.”
Scott Pugh Mar 3, 2023 ▶ 16:35 Scaling a SaaS Sales Team While Building Culture with Figma's VP of Sales, Scott Pugh
Mar 10, 2023
Assertion Supported
Lemkin: Average US Enterprise Uses Over 400 B2B Apps
“The average Enterprise company in the US has over 400 B to B apps, and the average SMB has over a hundred.”
Jason Lemkin Mar 10, 2023 ▶ 6:42 SaaStr APAC AMA with Jason Lemkin, SaaStr CEO
Apr 26, 2023 neutral
Insight
Mehta: SMB customers often require more hand-holding than enterprise clients
“And actually, ironically, SMBs sometimes need more hand-holding, because they have less internal capability, and they're, like, more distracted, so it's kind of weird, like, you know, the smallest customers sometimes need more help, so.”
Nick Mehta Apr 26, 2023 ▶ 32:38 Gainsight CEO Nick Mehta: My Top 10 Mistakes In 10 Years (LIVE SaaStr Workshop Wednesday)
Aug 3, 2023 bullish
Assertion Supported
Zinman: Monday.com's SMB retention proved more stable than enterprise during the downturn
“In the last, You know, 12 months since the economy changed is that we actually found that our SMB budget was more stable than our enterprise segment. So the SMBs NRR, yeah, was actually more stable.”
Eran Zinman Aug 3, 2023 ▶ 14:11 The Most Important SaaS Metrics with Monday.com Co-Founders and SaaStr Founder Jason Lemkin
Oct 10, 2023 positive
Insight
Zinman: Sell SMBs specific tools first, gradually revealing platform depth
“You don't need to tell the whole story from the beginning especially when you sell to SMBs. I think that we focused on giving them value as soon as possible. So if you were searching for a project management or CRM, we wanted to serve them a CRM or a project m…”
Eran Zinman Oct 10, 2023 ▶ 6:20 Secrets to Scaling and Growth in an Unpredictable Market with monday.com's Co-founder and Co-CEO
Oct 27, 2023 neutral
Insight
Lemkin: Launch a Second Product Before Hitting 100 Enterprise SaaS Customers
“In enterprise, it's often around a hundred customers in a group. In mid-market, it's a thousand. And in SMB, you're lucky to get to 10,000 customers without hitting significant headwinds, ok? So my rough, way too rough rules are enterprise, mid-market, SMB. Be…”
Jason Lemkin Oct 27, 2023 ▶ 9:33 How to Navigate Strategic Change for Growth with SaaStr CEO and Founder, Jason Lemkin
Sep 6, 2024 positive
Insight
Lang: Rushing SMB onboarding actually lowers successful go-live rates
“Meaning sometimes, you know, you think that, oh, like more momentum is a good thing and let's, you know, onboard you really quick. Let's go live next week. But actually the success rate drops quite a bit when you push that hard for it because you know, you wan…”
Daniel Laniado (Daniel Lang) Sep 6, 2024 ▶ 15:10 Why Vertical SaaS is Booming, And How to Get 110% NRR from SMBs, with Jason Lemkin + Mangomint's CEO
Sep 6, 2024 neutral
Insight
Lemkin: SMB SaaS go-live rates typically land around 80%
“The actual number of paid customers that go live is in the eighties. They're often, as CEOs, we think, oh God, it must be 96%. And they're often shocked when they look at the data and they're like, oh my God, it's 81% of our customers go live, right? They're a…”
Jason Lemkin Sep 6, 2024 ▶ 14:40 Why Vertical SaaS is Booming, And How to Get 110% NRR from SMBs, with Jason Lemkin + Mangomint's CEO
Oct 8, 2024 neutral
Insight
Lemkin: Vertical SMB SaaS requires $10K in annual revenue per customer
“I think if you do the math, you almost have to earn at least 10 K a year from these very small businesses to make the math work.”
Jason Lemkin Oct 8, 2024 ▶ 9:39 The Secrets to Selling and Scaling in Vertical SaaS with Slice's CRO
Oct 15, 2024 bearish
Prediction Not checkable as stated
Lemkin: Competitors offering instant AI onboarding will capture the SMB market
“So this whole cheat, this whole thing of SMBs tolerating weeks to go live, I think is dying right now. So I would challenge you if that's you think about how you can eliminate onboarding in your app, even if you think it's impossible. Even if you think it can'…”
Jason Lemkin Oct 15, 2024 ▶ 22:04 The Era of HyperFunctional SaaS is Here l SaaStr CEO and Founder Jason Lemkin
Oct 22, 2024
Insight
Choice overload drives small businesses to demand software consolidation
“So what that tells consumers and all of us is that there's too much choice. Which is why consumers, small businesses, I think of as consumers are asking for consolidation, which is why we've acquired companies is why we built our platform to continue to be ext…”
René Lacerte Oct 22, 2024 ▶ 34:12 Approaching Half a Million Customers: How to Win in SMB | BILL CEO and Founder René Lacerte
Oct 22, 2024 neutral
Assertion Not checkable as stated
Non-AI SMB spend per customer has been flat for three quarters
“What we've seen this year is more stabilization in the last maybe three quarters. And so I call this the wait and see economy. This is, nobody's investing for growth the way they were three years ago, which is crazy. People were just investing, investing. Obvi…”
René Lacerte Oct 22, 2024 ▶ 5:44 Approaching Half a Million Customers: How to Win in SMB | BILL CEO and Founder René Lacerte
Feb 28, 2025 bearish
Insight
Zinman: Upmarket SaaS firms become irrelevant by abandoning SMBs
“People don't realize that the SMBs and mid-market of today are the enterprise of tomorrow. So they getting used to use another product, they're getting used to use another platform, and eventually they become the enterprise companies. And then those enterprise…”
Eran Zinman Feb 28, 2025 ▶ 11:16 AI at Scale: 8 Learnings from monday.com Co-Founder and Co-Ceo Eran Zinman
Mar 14, 2025
Assertion Not checkable as stated
Mehta: SaaS gross retention ranges from mid-70s (SMB) to 95%+ (core)
“In general, you find roughly in SAS that SMB oriented businesses that sell to SMB have gross retention somewhere between mid seventies and mid eighties. Enterprise oriented businesses that are maybe departmental apps are anywhere from 85 to low nineties. Poor …”
Nick Mehta Mar 14, 2025 ▶ 7:33 The Top 10 Customer Success Metrics Investors Care About in 2025 with Gainsight CEO Nick Mehta
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