When it comes to building a software business, there are differing opinions on the right approach. Many startup advisers advocate for the strategy of solving one pain point, gaining customers, and then adding features as the company grows. However, Parker Conrad, a serial founder and the current CEO of Rippling, an HR software startup valued at $13.5 billion in April, challenges this traditional wisdom.
In a recent episode of TechCrunch’s Found podcast, Conrad expressed his belief that the advice given to software founders in the past two decades has been misguided. He criticized the common practice of building very narrow applications and going deep into them, resulting in businesses having to manage multiple separate pieces of software to run their operations efficiently.
Contrary to the conventional approach, Rippling aims to be an all-encompassing solution for various business needs, ranging from payroll to expense management and corporate cards to IT solutions. Conrad argues that the key to building better business software lies in creating a system where multiple parallel applications can be built natively within the same platform.
By centralizing data and offering a standardized user experience, companies can benefit from increased efficiency and pricing flexibility. While there are situations where deep specialization is necessary, such as cybersecurity, Conrad believes that platforms outperform function-specific companies, particularly in times of economic uncertainty.
TechCrunch’s reports from last year highlighted the challenges faced by SaaS startups, with many struggling or needing to consolidate due to the saturation of one-feature startups in the market. This trend has led investors like Mark Goldberg to prioritize platforms over single-feature tech companies, citing the importance of differentiation and value proposition.
Conrad’s strategy with Rippling involves offering a horizontal approach that combines multiple capabilities into a single system, appealing to customers seeking integrated solutions. This approach has proven successful in attracting and retaining customers amidst a competitive landscape.
