Jul 192010
 
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The liability of newness/smallness are terms my early mentor Mac (Ian MacMillan) uses, which I think very well describe the challenge that most startup and small companies face:  they lack a track record of accomplishment and an infrastructure that will give prospective buyers a comfortable feeling when they are considering doing business with them.  Buyers, especially those from larger companies, tend to be highly risk-averse in their buying decisions.  They realize that if they go with a new and/or small company and for whatever reason that company cannot deliver, their job and reputation are on the line.  You need to overcome this liability by partnering with larger firms, and by making certain that your communications (web, phone, written, etc.) are 100% professional and credible.  With technology as it is today, it’s easy to appear larger than you are, until such time as you can become truly large and credible.  Money, time and effort you spend here will be very well rewarded; if you cannot get past the credibility gap, you cannot “pass go” and your business will go nowhere..

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