There are over 100,000 B2B SaaS companies. When your buyer needs a solution, they seriously evaluate three to five of them. The rest never get considered. Not because the product is worse. Because the buyer never thought of them.
The myth of the rational B2B buyer — the one who methodically compares all available options, builds a feature matrix, and makes a fully informed decision — doesn’t hold up. Real buyers shortlist from memory. They pick the brands that come to mind when the need arises. If you’re not already in their head, you’re not in the running.
That’s the consideration set problem. And for early-stage startups, it’s the silent killer.
The Consideration Set Problem
B2B SaaS has never been more crowded. Capital got cheap. Building software got cheap. Every category is packed with dozens — sometimes hundreds — of competitors. This is not a cycle. It’s the permanent state of the market.
And the buyers navigating this market don’t respond by evaluating more options. They respond by evaluating fewer. Mental availability — the ability to be recalled by a buyer when a purchase trigger occurs — governs who makes the shortlist. It’s not the best product that gets evaluated. It’s the most remembered one.
Ask anyone on LinkedIn to name their favorite project management tool. You’ll get Asana. Notion. Monday. Jira. The same five names, over and over — from people who have never used most of them. They recommend based on awareness, not experience. That’s mental availability at work.
Incumbents compound this advantage. Salesforce has been the CRM category king for over 20 years. HubSpot owns inbound marketing. These positions are remarkably stable — not because the products are unbeatable, but because the brands are unforgettable. Larger companies attract more customers who are also more loyal, while smaller brands get punished twice: fewer customers who churn faster.
We see this in positioning engagements constantly. Founders with objectively strong products and zero mental availability. The product works. The demo converts. But the buyer never reaches the demo because the startup wasn’t on the three-to-five list that formed before any research began.
Three Ways Into the Consideration Set
There are three paths to getting on the buyer’s shortlist. Two are expensive. One is not.
Path 1: Innovation. Build something objectively, demonstrably better than everything else. Figma did this. When Adobe owned design tools as desktop software, Figma brought real-time collaborative design to the browser. It was genuinely new. Nobody had seen it before. Designers switched because the old way suddenly felt broken. That’s innovation earning a consideration set from scratch.
The problem: innovation is rare, and the advantage is temporary. Adobe eventually acquired Figma. Every competitor adopted collaborative features. The innovation gap closes. Unless you keep reinventing, you’re back to competing on brand like everyone else.
Path 2: Money. Outspend the competition on share of voice. Monday.com entered project management as roughly the 450th tool in a category dominated by Asana, Jira, and Trello. Their product was not objectively better. But their marketing spend consistently exceeded their entire revenue — hundreds of millions in advertising funded by massive venture rounds. They bought YouTube ad inventory until you couldn’t watch a video without seeing a Monday.com ad. It worked. They’re now one of the biggest players in the category.
The problem: most Series A startups don’t have $100M+ marketing budgets. This path exists, but it’s not accessible.
Path 3: Positioning. Change what the buyer associates you with. Loom didn’t invent screen recording — that category existed for decades. They reframed async video as the antidote to meeting fatigue, a specific pain every knowledge worker recognized. They didn’t outspend Zoom. They out-positioned them by naming a problem Zoom wasn’t addressing.
Notion entered a productivity space owned by Google Docs, Evernote, and Confluence. Instead of competing feature-by-feature, they changed the frame entirely: one workspace that replaces them all. Different category. Different consideration set.
This is the path that doesn’t require inventing new technology or raising a war chest. It requires understanding your buyer’s problem better than the incumbent does — and articulating it first.
Why Positioning Is the Accessible Advantage
The companies that break into established consideration sets through positioning share one trait: they start with the buyer’s problem, not the product’s capabilities.
Slack didn’t pitch enterprise chat. They pitched killing internal email. The buyer’s pain — drowning in email — was the entry point. The feature set came later. By the time competitors offered similar functionality, Slack already owned the mental shortcut: “too much email → try Slack.”
Linear entered a space that Jira has dominated for over a decade. They didn’t try to out-feature Jira’s 2,000-option configuration screens. They positioned around speed and developer experience — naming a frustration (Jira is slow, bloated, and painful to use) that their target buyer already felt but no incumbent was acknowledging.
The pattern is consistent. These companies don’t compete on capabilities. They compete on empathy. They make the buyer feel understood before they ever see a feature list or a demo. That’s what buyer-first positioning means — it’s not tagline writing. It’s identifying the pain that the incumbent is too comfortable to name and building your entire go-to-market around it.
Your Product Can't Sell Itself From Outside the Room
The fight for your buyer’s attention is over before most startups show up. The shortlist forms from memory, not from research. And if you’re not in that memory, no amount of product quality will save you.
Innovation is rare and temporary. Big marketing budgets are for big companies. Positioning is the one lever every startup can pull — and it compounds. Once you own a specific problem in the buyer’s mind, you don’t need to outspend anyone. The association does the work.
Ask yourself: if your ideal buyer had a problem tomorrow that your product solves, would they think of you? If the answer is no, the issue is not your product. It’s your positioning.
Sources
- Byron Sharp, How Brands Grow — mental availability and the law of double jeopardy
- LinkedIn B2B Institute — 95% of B2B buyers are out-of-market at any given time
- Monday.com SEC filings — sales and marketing spend exceeding revenue (2019–2021)
- Innit Labs positioning engagement data — patterns observed across early-stage B2B startups