The post was originally published in Polish on Szymon’s LinkedIn profile. Szymon kindly agreed to republish what we think is of great value to our readers.
The startup in which I invested found itself in a difficult situation when the CEO stubbornly tried to sell only in Poland. Time after time, they negotiated with potential customers and conducted conversations that dragged on endlessly and did not have any results except frustration.
Szymon Janiak, Co-Founder and Managing Partner at Czysta3.VC
Due to the fact that the product was innovative, no one wanted to pay for remote controls: ‘After the successful implementation and the first results, we will be happy to think about it, but you have to do it free of charge.’ When it came to price negotiations, larger companies tried to force absurd rates from a position of strength. Above all, the expectation was to adjust the product to the requirements of a specific customer – also free of charge. When the CEO decided to change this approach, they chose several markets and focused on foreign customers – the machine started. Contracts on reasonable terms appeared, and the company began to develop with appropriate dynamics.
Unfortunately, this phenomenon occurs relatively often. Even last week, I had a very interesting conversation with two CEOs, one of whom bootstrapped, the other has already raised tens of millions for development. Both had similar problems. The Polish customer is difficult, demanding and demanding, – these are the opinions that appear regularly in the world of startups.
I am the last person to complain about the realities of the Vistula River and persuade for changes in this area, because the vast majority of my businesses operate here and are doing quite well. We have our shortcomings, but it is possible to run a business here on a satisfactory scale.
However, there are two things to consider. From the perspective of a startup: is our domestic market and, at the same time customers, ready for your product and will you be able to sell it successfully? This is an extremely difficult question, but if there is a lot of resistance from the very beginning, it is necessary to consider moving the operational activity to a place where it will be easier to build scale.
The second issue is the approach of large companies. Do we really have to squeeze every startup and young company like a lemon because we are bigger and they care? Should we patronize them because we have an economic advantage? This significantly delays the adoption of new technologies in our country, which ultimately would be beneficial for all of us. Let’s remember that the entire economy benefits from innovations.
The comment section had to add:
After our first attempts with BugBug on the Polish market and customer development, we removed the Polish language version altogether and only the English version remained. When I heard that $69 was expensive, even before the raise we made, and that the savings that we can generate for them as a company are cool, but they pass the costs on to the customer anyway, as stated by software houses, it quickly turned out that it didn’t make sense.
Currently, 95% of customers are abroad, 50% of which are in the USA, and customers ask how it is possible that we have such a low price… What can we change?
– Paweł Bylina, Co-Founder and CTO at BugBug
A great post, touching on a very important topic. Indeed, innovative products often meet resistance on the domestic market – long negotiations, reluctance to paid pilots, or expectations of free customization are common problems.
I agree that entering foreign markets can be crucial for many startups. There, it is often easier to find customers ready to pay for innovations and build scale faster.
However, we shouldn’t completely give up on the Polish market – we need education and a change of mentality, especially among large companies. The call for a more supportive approach to startups is extremely accurate. It is not only a matter of fair play, but also an investment in the future of our economy. Adopting new technologies and fostering innovation is key to competitiveness in a global world.
I think the key is to find a balance – building scale abroad, but at the same time working on changing the approach on the domestic market.
– Dr Paweł Pawlak, CEO at Impulse Management Group
In my experience of B2B sales, the Polish customer is the same as others. They look for efficiency, negotiate the same way, and have the same competences. Customers differ greatly in their approach to the product or innovation, but we don’t see it as characteristic of individual countries – of course, assuming that we are talking about Europe.
– Marcin Ekiert, Co-Founder and CEO at Yieldbird
I agree. In Poland, it’s difficult to sell anything without the first customer. It is much easier abroad. However, what I have observed, especially in SaaS sales, that the Polish customer doesn’t like to guess anything, there needs to be specifics and presentations based on customer data.
– Dominik Wantuch, CEO at Architecture of Sales
Szymon Janiak is an investor and a business-driven Managing Director at czysta3.vc, a Venture Capital fund located in Poland. He has over 10 years of experience in the technology sector. Szymon is also a Member of the Supervisory Board at stockbroker Grupa Trinity S.A.
