Modern Suppliers

Aligned incentives with their customers. They usually have a “pay per use” pricing model with the ability to scale operations ‘infinitely.’

Modern suppliers typically have one or more of these characteristics:

Leverage software to lower the barriers of entry for new companies and markets to emerge.

If you zoom far enough out, is it possible that software companies in the future are either suppliers or marketing businesses?

Suppliers focus specifically on certain elements of a business, while marketing companies are focused solely on captivating and nurturing an audience and community.

Which aspects of our business need to be built in-house?

Provide tooling that is difficult and resource-intensive to be built and managed in-house. This tooling is often a fixed cost and outside of a company’s core thesis.

Every company should be asking:

These modern suppliers are fundamentally democratizing the opportunity for anyone to build and scale. It’s, arguably, never been easier to start a software company. However, distribution and attention is the bottleneck for most companies.

Why are we building this instead of using suppliers?