Challenges of B2B Tech Startup and ways to overcome

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By Ashwani Rathore, CEO & Co-Founder, SpiderG

Every new business trying to start and establish itself faces a lot of challenges since its inception. However, B2B Tech Startups face some specific challenges unlike other B2C companies.

Though allure of launching a B2B tech startup is easy to understand, but some entrepreneurs fail to consider the unique risks they’ll face being in the competitive world of technology.

Below are some of the challenges you’ll will come up in the B2B Tech Startup ecosystem and ways to surpass them:

Lead Generation:

Unlike B2C retail businesses, B2B Tech Startups don’t have a proper roadmap to get customers to the front door. Instead, many of these B2B Tech Startups needs to proactively market themselves and reach out to new customers to grab their eyeballs. More than 50 % of B2B Tech Startups agrees that lead generation is one of their greatest ongoing challenge. Way to overcome this challenge is to be extremely focused on their target segment and keep doing NBD’s and aggressive pitches.

Brand Awareness and development:

Another important priority and challenge of B2B Tech Startup revolves around developing their brand and creating awareness about the same. Every B2B Tech startup wants to develop their brand in such a way that it can be easily recognized by their customers but unlike B2C tech Startups this brand building exercise is time consuming process. Key way to address this challenge is to focus on one powerful key message.


Hiring employees can be a nerve-wracking experience for any startup, but B2B tech startups often hire too many people before they’re really ready. Even if you have investor money behind you, stretching your resources can quickly become a problem. Youngsters come up with a mind that Startup is the cool thing these days and they wish to join but immediately they think of switching the jobs because of their high salary expectations. Hiring process should be very unique and innovative. Also B2B startups need to implement some unique HR initiatives to retain their employees.

Long Sales Cycle:

This is one of the biggest challenges and a harsh reality of B2B Tech Startups. Many founders under-estimate the time it takes to close the initial sales. Main responsible factor for long sales cycle is human resource. Significant way to address this concern is not only prepare the strong pitch but also to understand specific issues/concerns faced by customers and try to solve them.

Constant Change in Technology:

Rapid changes in technology can easily throw tech startup off-kilter.  There is always a pressure on Tech Startup entrepreneurs to move quickly and beat the competition to a solution. Being first always doesn’t mean you have won. Tech startups always need to be updated on the technology front and they have to execute fast enough on an idea and technology front.


Partnership Decisions:

As a new business, partnering with another company in a related field may seem like a great way to grow and establish faster. But the stakes are much higher for B2B tech startups, whose operations can easily be ruined by connecting their wagon to a passing fad. To address this concern companies should partner with larger, established companies which have a good chance of longitivity and success. Before partnering with companies it is important to have policies at place which can help startups to moderate risks.