I listened to a great episode of the cloud accounting podcast yesterday that discussed trust and technology in the accounting industry.
Apparently the time it takes to sell new software to accounting firms is on the longer end (12-24 months).
This is mainly because firms want to ensure they are making the right choice. They don’t want to jump into new software too soon if it’s unlikely they’ll be around in a year.
So how would your firm know when it’s not too soon to purchase THAT software product?
My best advice is to ask them how they are funding operations. One of the biggest reasons new software fails is because they run out of money.
If they are dependent on VC (venture capital) money to continue operations then they’ll have to shut down if they can’t continue to raise.
As such, the faster a firm gets to profitability typically the more stable the company will be.
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As a general rule, I’d avoid the super fast growing “rocket ship” software companies until they become more of a household name.
Slow and steady typically wins this race. Look for a software firm that’s at or near profitability that is experiencing reasonable growth.
PS. Here’s a link to that episode.
Talk soon,
Sean