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contents/1.2.1-applications-companies-vs.-tooling-companies.md

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However, for tooling companies, selling becomes a lot easier later on. Once your tool has reached a critical mass with a sufficient number of engineers who are proficient in it and prefer it, other companies might just become a user without you having to sell it. However, it’s really, really hard to get to that critical mass for new tools, and therefore, in general, tooling companies have higher risks than applications.
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After talking to my friend, I realized that it’s normal for a company like A to have more customers than a company like B early on. But it doesn’t mean that A has a better sales prospect. In fact, having two large companies as design partners is a really good sign for A.
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After talking to my friend, I realized that it’s normal for a company like A to have more customers than a company like B early on. But it doesn’t mean that A has a better sales prospect. In fact, having two large companies as design partners is a really good sign for B.
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A year later, both companies acquired a similar number of customers and grew to have around 30 employees, but more than half of company A are in sales whereas 80% of company B are in engineering.
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- How many people does your company have? How many are engineers? How many are in sales?
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*This book was created by [Chip Huyen](https://huyenchip.com) with the help of wonderful friends. For feedback, errata, and suggestions, the author can be reached [here](https://huyenchip.com/communication/). Copyright ©2021 Chip Huyen.*
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*This book was created by [Chip Huyen](https://huyenchip.com) with the help of wonderful friends. For feedback, errata, and suggestions, the author can be reached [here](https://huyenchip.com/communication/). Copyright ©2021 Chip Huyen.*

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