How many potential customers is minimally needed when considering a b2b niche?
I've have an idea for a B2B Saas that I've been considering for a while. After doing some research I found that there are only about 100 potential customers in the U.S. Granted it would only take about 2 of them to make an about 10K MRR business. (it depends on the size of the customers)
In your opinion what is the minimum amount of B2B customers in a niche to make it worth pursuing?
Cheers
Give a hundred prospects a go. If anticipated MRR is ten grand a month with two sales closed, most likely it's a good foundation to build upon. Golden rule of sales - high dollar low sales volume or low dollar and high sales volume. Basically it's about being a WalMart or a Rolls Royce in your industry
If you got a hundred prospects you're about to reach out to, look into channels other than email, or at least give every one of them a follow up call
Yeah I'm trying to figure out ways to get in touch with decision makers but they are all relatively large corporations.
LinkedIn is your friend. https://hunter.io is a great tool, too, for email lookups. LinkedIn Premium is worth every cent when it comes to sales. Prior to acquisition by SalesForce, https://www.data.com/ was indispensable, and it helped me close quite a few B2B sales (small biz and enterprise). Not sure if such a tool exists now.
Ah, thank you for the recommendations @milozo ! I'll try them out.
If there are just 100 of them you could probably email them all in a few days and see if you they'd buy your product
I've thought about that but I'm afraid I would get off on the wrong foot and seem "salesy".
You can just ask them for feedback at first, have a call with them to understand their problems, and if it seems like you can solve their problems, you can offer your solution. Rather than trying to "sell" them something, you're trying to solve their problems, and then they are paying you for the value you provide them.
Here's a good video on selling that might help. Around min 20:00 is a sample cold email: https://www.youtube.com/watch?v=xZi4kTJG-LE
Of course most of them will not reply to you or be interested. If 90% reject you, 10% have a call with you and 2% buy, then that's a great success for you. But to get that success, you'll have to fail with 98% of them. That's a hard thing for me to swallow but its needed.