Asks HN: Solo founders-How to respond when customers ask how big is your company

[brycelarkin]

I've built an MVP and am talking to a prospective customer. They would be my first customer. They're asking how many people are in the company and I don't know how to respond to that in a reassuring way. It's just me.

Some background is I've built a pretty niche / domain specific product, so there's actually no one else doing what I'm doing. The MVP works. I don't have any customers yet (some trialing).

[gnicholas]

Don’t dissemble. You should ask about what their concern is (you getting hit by a bus, you losing interest, etc.) so that you can find a solution that will work for them and other similar customers.

One of our licensees had a lawyer who asked us to put our source code in escrow, in case we got acquired or went under. It was a little embarrassing for her when I explained that they already had our source code, which was integrated into their platform during our pilot. Sometimes the concern is like this, just a box-checking exercise not based in reality.

[danjc]

Side note on escrow - we get asked this from time to time. We respond, we're happy to provide it on certain plans and quote them for it. No one has ever taken us on it.

In b2b you never say no, always have an option for what they're asking and charge more for it.

[codegeek]

"Right now, it is just me as I recently started this startup. Do you have any questions or concerns ? "

Then listen. Sometimes it is just a casual question. Sometimes it is a checklist. Also depends on how large the customer itself is.

You can also make this a plus by adding "You get direct support from the founder and will never have to talk to a robot" if they have any further concerns/objections.

I have lost like 2 deals out of 1000s where the company size was a potential issue and that too I am guessing because they never told me specifically but I guessed based on their questions/concerns.

[danjl]

No need for the "Right now" qualifier. It implies a particular future and a desire to grow, which may not be the case. It is perfectly fine to be a solo entrepreneur and adding that prefix implicitly implies otherwise.

[altdataseller]

Hire a few freelancers for some small tasks here and there and say you’re a team of 5 with most of them located in India or Eastern Europe. Never say you’re a team of 1 even if you are. Some people here are too honest for their own good

[benjaminwootton]

I would do this, but not just to deceive. Having a small team you work with will address some of your potential customers concerns about your ability to scale.

It’s how I’ve been working lately. It’s mainly me the customer is buying, but I have a team of 3-5 trusted freelancers I work with. Customers don’t seem to bat an eyelid at that proposal.

[ivanstegic]

This is the worst advice you could ever take. Always be true to yourself. Always be honest. Your potential client should be honored to have the founder and CEO of their new vendor and your undivided attention.

[caprock]

Just be honest, it will save you lots of pain down the road. I know getting the first customer(s) is hard, but don't lie to do it. They may not even care, and just want to know what they are getting into.

Good luck on your project. Getting this kind of interest is a good signal!

[jaredwiener]

You can also turn it into a positive -- you're small and new, but it means that you will be incredibly responsive to any feedback/changes/issues/support they face. You can build out the product with them.

[rkuodys]

To add to this - one more concern might be that you will change your mind in 2 months and they want to protect their investment. To address that, you can cover the issue in contract - especially if it's business critical. So open discussion is probably most important as it will help you with future clients.

[ianvisits]

At a guess - I suspect they are assessing risk of investing time/money in installing your product into their company and how they would deal with issues if you are off ill one day or want a holiday.

You need to be honest about your company size, but turn it into a positive, such as sole developer, backed by a third-party support package (assuming you have one), or that the company is expected to grow fast, so they wont be relying on just one person to fix things etc.

Pitch it really well, and depending on the type of customer, they may even end up wanting to invest in your company to help you scale up faster than you could expect (yes, I have seen that happen with start-ups).

Don't be afraid of awkward questions like these, as they will crop up, and each time you gain experience in handling the RFP style enquiries, and with experience comes improved skills to close those sales deals.

[joewhale]

Be upfront. Also, the fact that they will have the founder as their “customer success manager” instead of a hire that won’t really know what’s going on is a HUGE benefit.

[JohnFen]

I don't know if this is the best way, but what I've done in this situation is to answer along the lines of "we're a small, highly-focused company of under 50 employees. Do you have any specific concerns I can address?" (I choose "under 50" because that's often the smallest bracket in forms wanting this data).

The idea being that this question is often asked instead of what the customer really wants to know: "can you do the job properly in the required time frame?" I want to cut to the real question as soon as possible and not waste time and effort on the superficial one.

[tiffanyh]

FWIW, if it’s a Fortune 500 company, one of two things could be happening:

a. Minority Owned or SMB. Many Fortune 500 company’s have internal metrics where they try to do more business with Minority Owned or SMB businesses.

b. Bus Factor or Financial Risk. If you’re providing a service that will become core to them or poses financial risk to them if it stopped working (or you went out of business) - they are assessing how much risk you pose to their business.

As other have said, the better you can understand why they are asking the question the better you can respond.

And don’t lie.

[syndicatedjelly]

I wonder if the first point is applicable under Title VII of the Civil Rights Act, given that as a solo founder, one is below the 15 employee threshold.

https://en.wikipedia.org/wiki/Civil_Rights_Act_of_1964#Title...

[rockyperezz]

Aside from everyone else's input, I would also like to add that smaller companies usually come with the added benefit of adaptability, quick iterations/improvements, and clients' have direct access to the key decision maker which are all great points sought after by customers. It's classic interview 101: turn a seeming weakness into a strength.

As long as you have a long term vision of where you want to take the company (plan for the next quarter, next semester, one year plan, pipeline of possible improvements, potential pipeline of clients, hiring plan of who and when if necessary, etc.), and can communicate this in a reassuring way without puffery you can come across as trustworthy and even respectable to do business with. Customers just want to know you are the best value option within the category/niche. Part of being the best option is the reassurance that you: 1. have a product that meets their needs (product-market fit) 2. have long-term potential (so they don't have to worry about you shutting down and them wasting time looking for another alternative) <- depends on your niche 3. will be readily available to lend customer support

You can answer with the truth and then redirect that question back at them and ask things like: - what do you look for specifically in a company? - Does the number of employees affect the metrics you are trying to achieve or need help with? (the answers you get will give you a better idea of how to adapt your pitch based on their priorities, metrics, & expectations)

In the end, if they aren't happy with the truth, you get out of this all the wiser and still win. Good luck!

[fourseventy]

I'm guessing most of the people here who are saying "be truthful" have never started a company. Sometimes you just gotta fudge the numbers a bit and do what needs to be done to get your company off the ground. I've been in your shoes and I recommend saying something like "we are a team of 5".

[benjaminwootton]

Nah. Give the impression of scale if you can and need to, but I would draw the line at outright lying. If it doesn’t totally backfire then it’s dishonest. I would rather lose the deal.

[JohnFen]

> Sometimes you just gotta fudge the numbers a bit and do what needs to be done to get your company off the ground.

I disagree. I've never had to lie to get a company off the ground, and if that was a requirement, I'd rather let the company die and try again with something else.

Being vague, however, is OK.

[LastTrain]

"I'd love to meet the team!"

[DougN7]

“We are a small company and don’t discuss employee counts as a matter of policy.”

[Vox_Leone]

The question is predicated on the argument that 'small is bad'. As stakeholders in the industry, and active participants in the community, it is our job to try and change any negative perception of small enterprises. We have to show examples of 'small is good', and be truthful.

[danielmarkbruce]

It's not predicated on that. It's predicated on risk. I've been a buyer of software and the last thing I want to worry about is a guy gets hit by a bus (figuratively) and then I am stuck.

[Rastonbury]

Who is asking? Generally as a small software company founder, key man risk worries come from middle managers who are afraid of the worst case (you dying or something) then their boss asking, so they are just trying to cover all their bases. It should be a minor consideration for the overall business who is the ultimate customer (as there is risk in everything - getting acquired, going bankrupt etc.), ask their concerns and reassure, focus on the value and product since you have a niche

[taytus]

I've used: "We are tiny but mighty!"

People don't care how big you are but what problems you solve for them

Now we are four people working full time in our company, but still... tiny but mighty.

[danjl]

Gaining confidence is a huge part of any startup. Customers, investors and employees dislike insecurity. Every presentation, new customer, investment, and discussion helps increase your confidence. The confidence you build as part of these interactions will not only make your startup successful, it will help you become a better person.

[gavinhoward]

Also a solo founder.

I didn't know I had this question. (Don't have an MVP yet.)

Thank you for everyone that has given good answers!

[tcdent]

Whatever you do, don't convey your insecurity in your response (as many of these comments suggest).

[olavgg]

I am in the same situation and I am being honest about that is currently only me. My plan is to hire people, business developers, project managers and engineers. But there has to be work for them before I hire.

[john61]

You could join a freelancer programmer cooperative to share the risk and tell them that you cooperate with x others.

[twodave]

I'd say something like:

> I _am_ <company name>. This product is my baby.

[brycelarkin]

update 1: Thanks everyone! I ended up being transparent and telling them it’s just me and we just released an mvp.

Will keep you all posted!