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Solution

by Scott Snydervia Nathan Latka Podcast
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Built in3 years
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Scott Snyder spent years in the manufacturing and wholesale distribution industry, developing electronic novelties and promotional products—items costing under a dollar to produce but facing massive distribution challenges. Running this business through the recession taught him a hard lesson: companies needed a completely new set of tools to survive and compete. The frustration of piecing together disconnected systems to manage sales, marketing, customer service, and commerce inspired him to build Solution.

Building the First Version

Rather than rush to market, Scott invested heavily in validation. He conducted extensive qualitative research, talking directly to potential customers about their pain points and needs for a unified platform. The research overwhelmingly confirmed demand—large enterprises were trying to solve this by acquiring different companies, but there was no purpose-built platform from the ground up. Scott committed over $1 million of his own capital and assembled a 10-person team, mostly engineers and developers spread across the United States, Singapore, Germany, and Morocco. Development took 3 years, with Scott building a system that truly unifies transactional data (not just arbitrary data entry) to enable intelligent customer scoring using recency, frequency, and monetary metrics—something existing platforms like HubSpot and Marketo couldn't deliver for the manufacturing vertical.

Finding the First Customers

Scott's go-to-market strategy relied on outbound call strategies, networking events, and trade shows. He targeted manufacturers and wholesale distributors under $100M in revenue, focusing initially on companies in the United States and Singapore at the startup phase. By the time of this interview, he had assembled an advisory group of 15 early adopters—10 companies in Singapore and 5 in Southern California—using the platform for free. He tracked daily active users and contact database entries to measure engagement and signal readiness to convert to paying customers.

What Worked (and What Didn't)

The free early-adopter program proved effective for relationship-building and understanding customer workflows. Scott intentionally avoided a hard sell, instead helping companies implement the system and demonstrating clear value. However, adoption was gradual—while early adopters showed strong usage metrics, none had yet converted to paid when this interview took place. The strategy was to transition from free to paid during Q1, using annual contracts (though monthly options were available) at price points ranging from $35 to $113/month. Scott noted that the complexity of the platform required hand-holding and couldn't rely on self-serve or open-floodgates onboarding.

Where They Are Now

At the time of the interview, Solution was pre-revenue but burning $17-20k per month. Scott was preparing to convert the early-adopter cohort into paying customers, with the first training session just completed before the interview. His confidence in the product came partly from personal conviction—he and his team planned to use it themselves and believed others would feel the same. Despite the high capital investment before revenue, Scott remained focused on solving a real problem for manufacturing SMBs that larger competitors were ignoring.

Why It Worked
  • Scott's deep operational experience in manufacturing gave him credibility to identify a genuine, underserved pain point that larger platforms like HubSpot overlooked, enabling him to build a purpose-built solution rather than a generic one.
  • Investing 3 years and over $1 million in validation and development before monetization allowed Solution to build transactional data unification that competitors couldn't match, creating defensible differentiation in a specific vertical.
  • The free early-adopter program with 15 companies across two geographies simultaneously validated product-market fit, built organic advocacy, and created a conversion pipeline without aggressive sales tactics that could damage relationships in tight-knit industry networks.
  • Focusing on outbound calls and trade shows aligned with how his target buyers (manufacturers under $100M) actually source solutions, rather than chasing channels that work for other SaaS verticals.
  • Hand-selecting customers by revenue size and geography allowed Scott to concentrate resources on accounts with similar operational structures, increasing the likelihood that his platform would work without customization.
How to Replicate
  • 1.Spend 6-12 months conducting direct qualitative interviews with 20-30 potential customers in your target vertical before writing production code, specifically asking how they currently patch together disconnected systems to solve a core business process.
  • 2.Build a free early-adopter program with 10-15 carefully selected companies that match your ideal customer profile, tracking specific engagement metrics (daily active users, feature adoption) weekly to identify which workflows drive value before converting to paid.
  • 3.Develop your go-to-market through channels where your target customers naturally congregate (industry trade shows, vertical-specific networking events, LinkedIn outreach to decision-makers) rather than assuming horizontal SaaS channels will work.
  • 4.Price your initial offering as an annual contract with a monthly alternative, targeting the lower end of what your early adopters can afford ($35-113/month range), and commit to hands-on onboarding and training rather than self-serve until you fully understand implementation complexity.
  • 5.Assemble a 10-15 person remote team of engineers and developers across multiple continents willing to work on a 3-year development timeline, prioritizing technical depth over rapid hiring, so you can build genuinely differentiated functionality rather than a faster copycat.

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