Sales For Start-ups By Subbu Vempati

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Subbu Vempati is the Founder and CEO of Indiverein. Subbu was country head of HP Software Operations. …

Subbu Vempati is the Founder and CEO of Indiverein. Subbu was country head of HP Software Operations.

As founder member, you need to understand sales and how you should use salespeople productively and efficiently. Time to get insights into Sales process

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  • 1. Subbu VempatiSALES FORCE
  • 2. Introducing Myself• Five years in Defense Research• Twenty two years in HP – Last Assignment – Managing about $8B of pull- through WW partner business – Key Skills – Scale• Last one and a half years in Indiverein – Founder – 1+1 > 11 : Partnership of Best of Breed late stage start-up/SME IT companies – Goal: $100M in three years
  • 3. Focus of the Presentation AND, Not B2C
  • 4. Problems faced by Start-ups 9. Regulatory 1. Obtaining 1-Year Old Co environment 9. Economic 9-Year Old Co external 1% environment financing 7. Human 8. Economic 2% 1% resource environment 5. management 3%Production/O 5% perationsmanagement 1. Obtaining 8. Human 4% external 2. Internal resource 6. General financing financial management management 17% management 18% 11% 23% 2. Internal financial management 7. General 16% management 15% 3. Sales/Marketi ng 24% 3. 4. Product 6. Sales/Marketidevelopment Organization ng 5% structure/des 5. 38% ign Production/O 6% perations 4. Product management development 9% 2% David E. Terpstra, Philip D. Olson
  • 5. You have an old buckle? I have a customerCustomers are plenty!1. The issue is how do we find a way to reach them (RTM)?2. Each route to the customer has its own characterization Product Customer
  • 6. Startup Genome• Founders that learn are more successful• Founders overestimate the value of IP before product market fit by 255%.• Startups need 2-3 times longer to validate their market than most founders expect• Startups that haven’t raised money over-estimate their market size by 100x• Business-heavy founding teams are 6.2x more likely to successfully scale with sales driven startups than with product centric startups.• Premature scaling is the most common reason for startups to perform worse.
  • 7. Sales in Enterprise vs. in SME/Start-ups• Saturation coverage vs. Entry challenges• Many RTM vs. one or two RTM• Sales Team – Farming sales force vs. Hunters – Layers of sales force vs. Simple structure – Complex sales incentives vs. Simple• Deep pockets vs. Cash flow challenges• Employees vs. Owners – Slow decision making vs. Nimble• Brand power vs. “Unknown” – Innovator’s dilemma vs. Innovation – Breadth vs. Niche – One size fits all vs. Customer Intimacy in solutions
  • 8. Saturation coverage vs. Entry challenge 1. Is it Market size/growth research or Entry challenges research? 2. What are the plans for Entry challenges? 3. What is the time to achieve critical mass? 4. How to prevent SG&A getting ahead of the curve?
  • 9. Many RTM vs. one or two RTM• Coverage • No scale• Difficult to price • Predictable margins• Difficult to repri or • Easy to retarget repurpose • Tailor made for RTM• One size fits all How to choose RTM How to keep them abreast? All-in-One, MSFT-KPMG
  • 10. Direct Sales• Farming sales force • Hunters• Layers and Layers • Specialists• Complex layers • Simple structure• Complex incentive • Simple incentives structures 1. Where should you use Direct Sales? 2. How do you measure Sales productivity? 1. One more in India or in EMEA? 3. How to target them?
  • 11. Direct Sales
  • 12. Brand power vs. “Unknown”• Innovator’s dilemma vs. Innovation – Breadth vs. Niche• One size fits all vs. Customer Intimacy in solutions Not choosing the early right customers in start up can meander the product; Shelf life – of core. When you drift off- core…….. How to keep the sales abreast with changes? How to overcome niche? OV 20% features
  • 13. Deep pockets vs. Cash flow challenges• Who can afford to give away? Boost sales without slashing prices
  • 14. Thank You!