Josh Hoffman-Senn (MBA 2019) and fellow cofounder of LS, Jimmy Pemberton, launched their initial digital toolkit in 2021, after seeing fellow musicians search out supplemental income while venues were shut down and tours canceled. Hoffman-Senn, who plays classical piano and jazz guitar, and Pemberton, a drummer, thought they could offer musicians an online platform that would help them connect with fans in a meaningful if virtual way.

The founders soon discovered a much larger business opportunity after going through the Harvard i-lab’s Venture Incubation Program. Fast forward several months and much web development later, and now LS offers a B2B SaaS product that can transform any website from a static display of content into an interactive experience, fully white-labeled with the client’s branding. For a sense of what that interaction might look like, imagine that a golf club manufacturer sells a nine iron online, then invites the buyer to upload a video of their swing for critique by a pro. Or a music store sells an instrument, then offers the buyer online lessons with an artist or influencer.

In its first year, LS’s founders secured funding, built the platform, and ran a series of paid pilots; all of the participants signed on as clients. Looking to the future, the co-CEOs see opportunities as wide as the web itself: “We think the entire internet is going in this direction,” says Hoffman-Senn. It’s no longer enough to provide good information. Sites have to provide robust online experiences if they want to create strong bonds and real relationships with their customers, he adds.

So far LS has signed on mid-size businesses that generate revenues in the $10 million to $30 million range, a comfortable space for their two-person team. Now LS is getting queries from $100 million mega brands. “These are companies that invest a lot in design to make their sites beautiful but they’re not functional in a meaningful way, and they want to know what it would take for us to build it into their site,” says Hoffman-Senn. The founders have questions about a leap like this: How would they adapt to the sales cycles? How or when would larger clients affect their staffing structure and self-service platform? Are these worries even warranted?

“Going for the big one is intriguing, but my hesitation is in making sure our existing customers still win and that we can still grow in that market,” says Pemberton. Should LS stick with the formula that’s been working, or should they make the leap to enterprise sales and commit to the scaling it would require?

My first suggestion for the team is to remember that consulting companies are very different from product companies. When I visit the LS website, it looks like the company is trying to be both. Go all in on your vision to be a product company! A potential customer wants to come to your website and see a very clear description of your product, with a case study and clear pricing. It can be a little scary to give up the consulting revenue, which likely provides cash flow to fund the development of the productized offerings. The downside of this approach is time. We live in a world where many firms are funded and are going after a similar opportunity. Best to have an intense focus and evolve your software in a rapid fashion.

It is very common for software companies to start with smaller customers and work their way up. While it is harder (and takes longer) to sell into the enterprise, the benefits are higher price points and improved long-term retention rates. In the early days, it’s best to optimize for product feedback. If it’s easier to sell to smaller customers (with more volume), stick with this segment and treat the feedback as gold. Rapidly iterate your product and focus on improving your customer satisfaction and retention. Stay with these target customers until you reach $1 million or $2 million in revenue, then move upstream when the product is more mature.
—Ralph Folz is an entrepreneur-in-residence at the Rock Center, a board director, and angel investor. He cofounded the internet consulting firm Molecular and spent seven years as CEO of WordStream.

The founders should ponder this question first: What are you really good at? The product and service lineup is so broad. Every business on Earth could look at this list and find something they’d want. And yet no one would believe a company that does so much is also the world’s best at the one thing they came to you for.

I assume two things: You want growth and to be acquired by a SaaS company or big agency, and that you’ll specialize in one or two products and drop the consulting for now.

Then add big customers. They’ll give you more, faster learning, as well as credibility. They’ll push you to do different things, make you create new product capabilities, and pay for the coding. When smaller users visit your site and see that Gigundus Industries uses your services, it will reassure those smaller customers. As you improve at serving bigger customers, keep sharpening the clarity and UX of the self-service options for your focused world-class products. If you’re already getting inquiries from big companies, the most difficult assignment—generating leads—is already behind you.

Net, it’s not either/or. Both will make a more focused product line succeed. Aim to be world’s best at one thing, regardless of customer size. Okay, two things, just in case. But not everything. And aim for a very specific acquirer of the company at a time that’s right for you and your lives. Good luck!
—Bill Mirbach (MBA 1976) is a marketer and startup CEO who manages D2C and B2B projects for clients big and small.

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