“What if you go out of business?”
CFO · Challenger vendor
A CFO who asks what happens if you go out of business is asking a reasonable question about risk: their data, their money and the work of switching again. Don't brush it off with reassurance. Answer the risk in writing: ask what would reassure them, such as data export or contract terms, and offer to put it in the contract.
Practise it before the real call
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What the buyer says
You're a young company. What happens to our data, and our money, if you go out of business?
How to handle it
Listen
Hear "our data, and our money". The CFO has named the two things at risk. Answer those, not general confidence.
Acknowledge
Agree that it's a fair question to ask any young supplier, and that they should have protection.
Explore
Ask what would reassure them: being able to export their data at any time, payment terms that match what they receive, contract protections, or information about your funding and customers.
Respond
Offer concrete protections: how they can get their data out, payment terms that limit their exposure, and contract clauses that cover the scenario. Share what you can about your stability, honestly.
Say this
“That's a fair question to ask any young company.”
Say this
“What would you need to feel protected: your data, your money, or both?”
Say this
“Would it help to put those protections in the contract?”
Variations
- Head of Legal: “What happens to our data if you're acquired or shut down?”
- Procurement Manager: “We need three years of accounts before we can sign.”
Questions people ask
How do you respond when a buyer asks what happens if your company goes out of business?
Treat it as a fair question. Ask what they need to feel protected, such as data export, payment terms or contract clauses, then offer those protections in writing and share what you can about your stability honestly.
How can buyers reduce the risk of using a young software company?
Common protections include the ability to export data at any time, payment terms that limit exposure, contract clauses that cover the supplier closing or being acquired, and checking the supplier's customers and backing.
More objections in Challenger vendor
- “You're too small for a company our size”
- “Nobody gets fired for choosing the big name”
- “I've never heard of you”
- “Nobody in our industry uses you”
Practise it before the real call
Free to start. No credit card.