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500Startups Discussion - Startup Selling: Conquering the Enterprise

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500Startups Discussion - Startup Selling: Conquering the Enterprise

  1. 1. CONQUERING THE ENTERPRISE BEST PRACTICES FOR EARLY STAGE STARTUP SELLING TO LARGE COMPANIES
  2. 2. RULES interactive working session some content, lots of real-time discussion this is your session, tell me what you want… 2 Just Say “No!”
  3. 3. ME cofounder & CEO of Drumbi • 500Startups portfolio company, focused on business- consumer communications former Accenture Partner did a startup and sold it management consultant at heart wife, two kids, dog… live in San Clemente, So-Cal food, cooking and music 3 Just Say “No!”
  4. 4. YOU tell me about yourself, and your company what are you selling? to whom? what do you think when i use the words… selling salesperson 4 Just Say “No!”
  5. 5. SELLING AS A FORM OF TESTING will anyone care about your product who cares (what segment) how much will they pay what is the right sales model (distribution) what is the right sales process what is your customer acquisition cost 5
  6. 6. STAGE SPECIFIC APPROACH Learn Revenue Learn Revenue Revenue Learn MVP R1.0 Scale 6 Just Say “No!”
  7. 7. KNOW YOUR SEGMENT 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 7 Just 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 8 Just Say “No!”
  9. 9. EMERGING ENTERPRISE executives often have large unmet business potential, and see opportunities in your offering innovation in their segment may be scarce margin pressure across the sector small improvements may lead to significant upside impacts them as much as the business they can relate to a startup better…and you as well low tolerance for bullshit 9 Just Say “No!”
  10. 10. TERMINOLOGY procurement/sourcing = purchasing, but with process and guidelines women and minority owned businesses GSA contracts mandatory rebid process RFI = Request for Information RFP = Request for Proposal SLA = Service Level Agreements MSA = Master Services Agreement SOW = Statement of Work 10 Just Say “No!”
  11. 11. COMMON MISTAKES hiring sales people too soon focusing on channel relationships too early selling, and not listening not selling (“this shit sells itself!”) not closing (“it’s a done deal!”) not mentioning money not saying no! overcommitting and under-delivering marketing 11 Just Say “No!”
  12. 12. THE ONLY THING YOU NEED the first reference customer (paying, the other type don’t count) a business-case or other proof of results someone who will take a call, and validate your claims rinse repeat 12 Just Say “No!”
  13. 13. HOW TO DO IT use Data.com, LinkedIn, FB, your neighbor, alumni network or whatever tool you have find your ideal early-adopter focus on two goals: getting to a “no” quickly, and finding your champion early adopters will not buy without a champion, no matter what the benefit exhaust your network, then go to 2nd degree let early adopters self-select issue a press-release fake sign-up page, with some blog directed traffic ask for help…beg borrow and steal your way into referrals 13 Just Say “No!”
  14. 14. EMAIL Friends, I am targeting a select group of companies for the second stage of Drumbi rollout, in 2012. Here is a list of target prospects. Please respond 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 trying to identify great opportunities to help companies reduce op-ex, increase customer satisfaction, and improve lead conversion rates. Many thanks. Shervin United Panam Financial Corp. Mp Biomedicals, LLC Wonderware Corporation Roth Staffing Companies, L.P. Harte-Hanks Shoppers, Inc. Biolabs Inc Metagenics, 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 Company Fletcher Jones Motor Cars Inc AGR Group, Inc. Kelley Blue Book Co., Inc. Crescent Healthcare, Inc. First American Professional Real Estate Berry Knott's 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. TEMPLATE Dear ZZZZZ. I am reaching out to let you know that a friend of mine, Shervin Talieh, founder and CEO of Drumbi, has developed some very special technology to improve customer communications. Their solution is live at several companies and they are 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 rates Ideally, 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.com Thanks. 15 Just Say “No!”
  16. 16. THE SHOT-CLOCK your deal will start to be at risk the moment you find a fit there are more reasons to say “no” than “yes” you will optimize for the wrong objection price implementation time drive the process, or it will drive you if there is no customer skin in the game, there is no deal there are multiple people conspiring against you as we speak 16 Just Say “No!”
  17. 17. RESPONDING TO TRAPS Incumbent Internal IT Do Other • RFI • Strategic Nothing startup • RFP • New • New • New story Standards priorities 17 Just Say “No!”
  18. 18. YOU’RE BEING PLAYED one 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? 18 Just Say “No!”
  19. 19. TACTICS INCUMBENTS WILL 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 19 Just Say “No!”
  20. 20. SETTING TRAPS Singular Define the Non- Speed focus category conformity 20 Just Say “No!”
  21. 21. HAPPY EARS founders and inexperienced sales people will hear “yes” when the prospect is saying “maybe” pride themselves in “flipping” or “converting” a lead the inner monologue is quite different (reality distortion field) your enemy is the clock… the goal is to qualify out, not in 21 Just Say “No!”
  22. 22. THANK YOU. Paid in full. 22

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