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Startup Sales - Broad View


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This presentation was delivered to a group of 40 Founders/CEO's and a few salespeople who want to know what they should be thinking about before they hire salespeople.

Broad address of the prevailing thought processes, techniques and methodologies for early adopter sales.

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Startup Sales - Broad View

  1. 1. Kelley Boyd @msksboyd VPS @ A StartupPerspective on Sales Think Experience @thnkexp #thnkexp
  2. 2. Agenda• Who is here? • Founders (CEO/CTO/Salespeople?)• Why are you here??? • What to look for and when? • What to expect? • What are your responsibilities to the business?
  3. 3. About Me• EE: Entrepreneur since Elementary School • Sold Cars and Produce • DJ / BlackJack / Yacht Steward • Got my first “High Tech” Job by calling companies in the Yellow Pages • Won National recognition selling Group 4/ ISDN Fax Machines
  4. 4. #WINNINGHigh Tech Startups you could Google• Network Resources = Evernet Systems• ODS = Enron and Cisco deals won (Lost Exxon)• DEC = Cabletron (Sold a big ass switch to IBM)• Raptor = IPO / Axent/Symantec (Lucent Global)• WheelGroup = Booked deals for 1M in 120 days• F5Labs = IPO (Wal-Mart >6 months)
  5. 5. #GNARLYStartUps you REALLY never heard of• Netropolis - ISP (HTML)• Road Scholar - GPS• PayPerClick - MMYHP• Really Easy Internet - VOIP• Enregle - Secure Email• Digital Lifestyles, Inc. - Residential Infrastructure
  6. 6. Referenced• Geoffery Moore - Crossing the Chasm• Steve Blank - Four Steps to the Epiphany• Charles Hudson - Don’t let BD tank your startup (Slideshare)
  7. 7. Definition of TermsWhat is a Market?• A set of potential or actual customers• For a given set of products or services• Who have a common set of needs or wants (even if they don’t know it yet)• Who reference each other when making buying decisions
  8. 8. Definition of TermsWhat makes a “high tech” business • Adheres to Technology Adoption Life Cycle • Innovators • Early Adopters: Disruptive • #CHASM: Establish Market Share • Early Majority: Pragmatists • Late Majority • Laggards
  9. 9. Before Web 2.0Key Strategy: Niche Marketing • “We do not have time - or we cannot afford to - implement it now” • This creates a Sales driven rather than Market driven company • How bad can this be? Disastrous • Things will work out? Not always • Our customers (early adopters) will lead us to the market. Never in a million years #CHASM
  10. 10. 2011 Early Stage• Today’s environment it is very easy to ideate and build a product• Not very conducive to understanding what has to happen to turn a product into a business
  11. 11. 2011 Founders• Idea• Product• Customer Development (WTH??)• + Product + Cust Dev + Product =• Product Market Fit: Market driven• Begin to form the Business
  12. 12. Customer CreationEarly Stage “Marketing” but different• Market Type: Figure it out • Existing / Resegmented / Niche / New• Establish “year one objectives”• Positioning (Company and Product)• Launch (Company and Product)• Demand Creation (Ad, PR, Shows/Conferences)
  13. 13. Sales Talk• Customer and Deal Evolution • Suspect / Prospect / Champion / Proposal / Close / Implement /• That seems easy so where (and why) can it go wrong? • Early Evaluators / Scalable Customers / Mainstream Customers• Used to say the best technology did not win, the best marketing did • I think now the best customer service is the key differentiator (the rise of the community manager)
  14. 14. Sales - PeopleThere are Sales Managers • They serve a purpose to train, groom and coach • Their highest responsibility is to remove barriers to success for salesThere are Sales People • Are like Waiters • Are like Thoroughbreds • Are like Football Players
  15. 15. First Sales HireEAM Sales - More strategic than tactical• Prepare to report and review activities to date toward finding the right target/model/price• Document activities and establish mechanics of a deal that can be deployed to a select number of customers and / or partners with a similar structure • This will need to be done several times targeting different strata of customers
  16. 16. First Sales HireEAM Sales - More strategic than tactical• PERFORMANCE: It is impossible to establish revenue performance or a reliable compensation plan goals if you don’t know how your product will be sold, how much it will sell for or who will sell it. • The KEY Deal: Reference Customer • Word of Mouth • The VOLUME Deal: Partner Deal • Establishes Market Leadership
  17. 17. Sales OperationsDo not underestimate!!! If you think you don’t have timeto create a framework to communicate, how will youknow what you want to know, when you want to knowit? • Get around the table and get on the same page about expectations for communication • Draft New Strategic AND Tactical plans (expect for them to change) • Implement a mechanism for tracking progress / changes to what you know
  18. 18. Business Development Business Development is a very specific function with (only) two core activities: • License someone else’s technology or content for use in your product or service • Distribute your product or service through someone else’s network (resellers / channels)• Business Development is NOT a Chief Revenue Officer, or a VP Sales, or a salesperson.
  19. 19. The Art of BD DealBecome a trusted advisor - Listening is the key • Make sure you have rational performance expectations from any deal you do • Get performance comps from past deals • Get success metrics in writing • People and priorities can change • If they won’t commit in writing, there’s a reason • ALWAYS ask if anything has changed since you last met
  20. 20. Early AdoptersFirst they ignore youThen they laugh at you,Then they fight with you,and then...You #WIN~Ghandi
  21. 21. How do YOU #Win?When you hire the first Salesperson (the one whocan find a replicable sales and operations model),YOUare the Sales Manager. If they fail, it is your fault. • Remove barriers to success • Become a trusted advisor • Listening is the key • Make sure you have rational performance expectations • Document success metrics • Ask if anything has changed
  22. 22. Kelley Boyd @msksboyd VPS @ Thanks for your Participation and Attendance! Think Experience @thnkexp #thnkexp