Mark Osborne explains why early-stage companies chase market share over margins, then raise prices once dominant. Firms preparing to sell prefer recurring revenue and customers spread across a wider base, not concentrated in a few big accounts.
It does, but it also sort of like starts to suggest things like early stages of the market when you're trying to establish market dominance, you're better off with a pricing structure that's less about maximizing the value per sale and more about maximizing your market share so that you can take more market share. And then as you establish yourself as the category leader or the dominant player, you can then start to drive up your margin. On those sales. Likewise, businesses that are in, you know, maybe preparing for a recapitalization or some sort of exit scenario like to be able to demonstrate more recurring revenue and less customer concentration.
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