500Startups Discussion - Startup Selling: Conquering the Enterprise

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500Startups Discussion - Startup Selling: Conquering the Enterprise

  1. 1. CONQUERINGTHEENTERPRISEBEST PRACTICES FOR EARLY STAGESTARTUP SELLING TO LARGE COMPANIES
  2. 2. RULESinteractive working sessionsome content, lots of real-time discussionthis is your session, tell me what you want… 2Just Say “No!”
  3. 3. MEcofounder & CEO of Drumbi • 500Startups portfolio company, focused on business- consumer communicationsformer Accenture Partnerdid a startup and sold itmanagement consultant at heartwife, two kids, dog… live in San Clemente, So-Calfood, cooking and music 3Just Say “No!”
  4. 4. YOUtell me about yourself, and your companywhat are you selling? to whom?what do you think when i use the words…sellingsalesperson 4Just Say “No!”
  5. 5. SELLING AS A FORMOF TESTINGwill anyone care about your productwho cares (what segment)how much will they paywhat is the right sales model (distribution)what is the right sales processwhat is your customer acquisition cost 5
  6. 6. STAGE SPECIFICAPPROACH Learn Revenue Learn Revenue Revenue Learn MVP R1.0 Scale 6Just Say “No!”
  7. 7. KNOW YOURSEGMENT Emerging VSB SMB F5000 Enterprise Formal $50-500M 1 or 2 people some process procurement Revenue process Owner still Lots of Lifestyle, Quickbooks influencing vendors and home-office decisions consultants Complexity of millions of Departmental lots of pain F5000, but no them budgets human capital 7Just Say “No!”
  8. 8. KNOW YOUR BUYER Emerging VSB SMB F5000 Enterprise We are I was told to forced to do buy this… it… We can’t We need I need it… build it it… ourselves… I’m going to change the Faster time- game… to-market 8Just Say “No!”
  9. 9. EMERGINGENTERPRISEexecutives often have large unmet business potential, andsee opportunities in your offeringinnovation in their segment may be scarcemargin pressure across the sectorsmall improvements may lead to significant upsideimpacts them as much as the businessthey can relate to a startup better…and you as welllow tolerance for bullshit 9Just Say “No!”
  10. 10. TERMINOLOGYprocurement/sourcing = purchasing, but with process andguidelines women and minority owned businesses GSA contracts mandatory rebid processRFI = Request for InformationRFP = Request for ProposalSLA = Service Level AgreementsMSA = Master Services AgreementSOW = Statement of Work 10Just Say “No!”
  11. 11. COMMON MISTAKEShiring sales people too soonfocusing on channel relationships too earlyselling, and not listeningnot selling (“this shit sells itself!”)not closing (“it’s a done deal!”)not mentioning moneynot saying no!overcommitting and under-deliveringmarketing 11Just Say “No!”
  12. 12. THE ONLY THING YOUNEEDthe first reference customer (paying, the other type don’tcount)a business-case or other proof of resultssomeone who will take a call, and validate your claimsrinserepeat 12Just Say “No!”
  13. 13. HOW TO DO ITuse Data.com, LinkedIn, FB, your neighbor, alumni network orwhatever tool you havefind your ideal early-adopterfocus on two goals: getting to a “no” quickly, and finding yourchampionearly adopters will not buy without a champion, no matter whatthe benefitexhaust your network, then go to 2nd degreelet early adopters self-select issue a press-release fake sign-up page, with some blog directed trafficask for help…beg borrow and steal your way into referrals 13Just Say “No!”
  14. 14. EMAILFriends,I am targeting a select group of companies for the second stage of Drumbi rollout, in 2012. Here is a list of target prospects. Pleaserespond to me if you have a VP or C-level contact at any of these businesses, that you would feel comfortable making an introduction to.We simply want to see if our solutions are a good fit, and identify early adopters for the second half of the year. No hard selling, just tryingto identify great opportunities to help companies reduce op-ex, increase customer satisfaction, and improve lead conversion rates.Many thanks.ShervinUnited Panam Financial Corp. Mp Biomedicals, LLC Wonderware CorporationRoth Staffing Companies, L.P. Harte-Hanks Shoppers, Inc. Biolabs IncMetagenics, Inc. Zee Medical, Inc. Roger Cleveland Golf Company, Inc.Nikken International, Inc. St Joseph Home Care Network Hireright, Inc.Consumer Portfolio Services, Inc. Anaheim Arena Management, LLC Sir Speedy , Inc.Smith Micro Software, Inc. Remedytemp, Inc. Orange Coast Title CompanyFletcher Jones Motor Cars Inc AGR Group, Inc. Kelley Blue Book Co., Inc.Crescent Healthcare, Inc. First American Professional Real Estate Berry Knotts Farm Services, Inc.Tuttle-Click, Inc. California Title Company of Northern California Veterinary Pet Insurance Services, Inc.Community Dental Services, Inc Accupath Diagnostic Laboratories, Inc.Prudential California Reality 14 Just Say “No!”
  15. 15. TEMPLATEDear ZZZZZ.I am reaching out to let you know that a friend of mine, Shervin Talieh, founder and CEO of Drumbi, has developedsome very special technology to improve customer communications. Their solution is live at several companies and theyare ready to expand reach. I am looking for business contacts that would be interested in:* Improving their CSI and CSAT numbers,* Reducing their OpEx, to the tune of $50 per day, for EACH customer service representative they have* Increasing web-to-phone conversion ratesIdeally, the company has more than 10 customer service or contact center agents, and is hungry for innovation.Specifically, they are focused on mobile + social customer service.Here is a link to their website, which has a short video demonstration on the homepage. www.drurumbi.comThanks. 15Just Say “No!”
  16. 16. THE SHOT-CLOCKyour deal will start to be at risk the moment you find a fitthere are more reasons to say “no” than “yes”you will optimize for the wrong objection price implementation timedrive the process, or it will drive youif there is no customer skin in the game, there is no dealthere are multiple people conspiring against you as we speak 16Just Say “No!”
  17. 17. RESPONDING TOTRAPS Incumbent Internal IT Do Other • RFI • Strategic Nothing startup • RFP • New • New • New story Standards priorities 17Just Say “No!”
  18. 18. YOU’RE BEINGPLAYEDone more meeting…one more quote/proposal…one more buyer…no set deadline…no defined process…who is the buyer?how will you make the decision?what is your budget? 18Just Say “No!”
  19. 19. TACTICS INCUMBENTSWILL USE AGAINST YOU“we do it all, including professional services”“part of the master license agreement…its free!”“we can help you define the requirements”“lets visit our reference customers”“we are HIPPA and SAS70 compliant”“our VP of products is hosting an event…come!”man-to-man offense 19Just Say “No!”
  20. 20. SETTING TRAPS Singular Define the Non- Speed focus category conformity 20Just Say “No!”
  21. 21. HAPPY EARSfounders and inexperienced sales people will hear “yes”when the prospect is saying “maybe”pride themselves in “flipping” or “converting” a leadthe inner monologue is quite different (reality distortion field)your enemy is the clock…the goal is to qualify out, not in 21Just Say “No!”
  22. 22. THANK YOU.Paid in full. 22

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