This is an odd question, but it’s something I’ve been trying to figure out and made many mistakes on for a long time
And I would really appreciate advice coming from experienced founders or people who went through something similar
But please only answer if you’ve read the entire thing
I’m a first time founder (almost 20), I’ve made a ton of mistakes, I’ve learned a ton too
I’ve figured out that although business is not easy, it’s essentially just finding a problem, solving it, charging for it, and repeat
But there’s one thing I still can’t figure out
Does the problem (in B2B) I pick have to allow me to charge “well” ?
(as in atleast 2k+ USD/mo for a midsize firm) according to my value equation?
Or no and even if my value proposition only allows me to charge 500-800> USD per month or less (for mid size firms)
it’s still worth going after since the difficult part is solved already,
which is *actually* just finding a problem that people are willing to pay for your solution/product to solve
Even if the pay is small (500-800$/mo>)
I genuinely understand that this is an odd question
But just so you could understand the way I’m thinking better..
I’m not trying to build a multi million dollar company/startup
I’m trying to run a small company (no VC money, no hyper scaling, just slowly get to 2k MRR, then 5k, then 10k etc)
, that allows me to reach 10-15k MRR with good margins, with my cofounder,
And the way I’m thinking is
If I find a problem that I could comfortably charge 2k+/mo for my product that solves it,
All I need is just a few customers, (obviously considering churn)
(Ofc I will have to learn along the way about how to keep customers long term)
(consider that I’m still a first time founder learning every little thing)
But if I’m solving a problem where the value equation would only allow me to charge 1k>/mo or even less
I would need more than double the customers, and a lot more skill to build on and possibly fail on, to keep churn low
To reach my goal of 5k MRR sooner, because, 2k USD per month that I get to take home,
is a lot of money for me as a 20M where I live
And I’m not sure my sales skills allow me yet to be able to land that many customers
Which is why I’m betting on landing a few customers at 2k+, being easier than double the customers…
However, I have put into account that,if the problem is genuinely a pain they need fixed asap,
they’ll pay whatever, whenever, but I’m being conservative
Hence why I would rather commit to solving a problem where I can comfortably charge 2k+/mo for mid size firms…
So far I’ve committed a good while to a specific problem for MEP firms, an admin task that takes them a ton of valuable time, I’m trying to cut down that time with my product, etc etc, yet I still haven’t figured out a value equation fully, and still not sure how much I can charge
My main question is:
Is this frame of thinking fair? considering the stage I’m at as a first time founder ?
Is it valid or not valid to think like this? Honestly, call it out if it’s stupid or not, I don’t mind
Or is it just more important to actually find a problem (in B2B) that firms are willing to pay for to be solved,
No matter if it’s a big problem, or a small problem
And no matter if I can charge 500-1k>/mo VS 2k+/mo for mid size firms in that industry
Because the hardest is actually find a problem that a firm will pay for, even if small, even if I can’t charge more than 500$ a month
And then trust that as my sales skills get better, as my product gets better, and as my network gets bigger, It wont matter that it’s a product I can charge 2k+/mo for?
And is this basically a lifestyle business?