B2B SaaS StartUps: Don’t Ignore Q5 (& The Opportunity To Close Deals)
As a B2B SaaS startup founder, you may have heard about the opportunity to close deals during the fifth quarter, also known as Q5. In a recent video, startup advisor and investor Mark Suster explains the reasons why Q5 can be a great time to close deals, and how you can take advantage of it.
Firstly, Suster explains that large public companies, whose financial year ends on December 31st, often offer steep discounts to close deals before the year-end. Customers have learned to wait until the last minute to negotiate better prices, as companies prioritize meeting their financial targets.
Secondly, sales reps have the opportunity to cash in on the relationships they have built throughout the year. They can leverage the trust they have gained from advocates and partners to ask for deals to be closed before the year-end, which can help them exceed their quotas. Suster emphasizes that this is a good way to differentiate between great salespeople, who are able to close deals, and not-so-great ones, who make excuses.
For startup founders, Q5 can be a great opportunity to contact customers and prospects to see if they are willing to close deals before the end of the year. If your company’s valuation is based on its revenue in the following year, closing deals before the year-end can be beneficial. Suster suggests offering discounts or other incentives to close deals, but emphasizes the importance of building strong relationships with customers and prospects beforehand. Being honest about why closing the deal before the end of the year is important can also help build trust.
In conclusion, Q5 can be a great time to close deals for B2B SaaS startups. By understanding the reasons why customers wait until the last minute to negotiate deals, and leveraging the relationships you have built, you can take advantage of this opportunity. However, it’s important to remember that building trust and relationships should be a priority, and offering discounts should be done strategically.