Eta Consults

5 Easy Steps to Grow Sales at Start Ups

According to the Ernst and Young report on 2013 venture capital insights, http://bit.ly/15HjOe6 VC's are looking at different factors this year when considering where to invest dollars.  As investments are being carefully assessed, VC's are looking to mitigate their risk by seeking later stage emerging companies. While this seems very logical on the surface, this is lost on many developing technology companies who may continue to direct funds to product development over sales and marketing.

"We see evidence of money flowing into companies that are perceived as less high risk," the E&Y report states,  "the companies that are attracting greater VC interest are those that provide a service and are getting paid for it." 

That's a powerful statement as traditionally there has been a rush to build the best mouse trap assuming that the technology itself would be the driving force for future equity events.  In reality, without a defendable and viable sales pipeline and actual revenue, the risk of missing out on additional funding increases exponentially.  

Start ups and early stage companies need to invest with equal effort and vigor in building a strong sales story.  There are steps that companies can take to help this along that will allow them to optimize their return on angel or seed money funding.  

1. Develop both a marketing position and a sales positioning statement.  The value proposition that your product or service offers has to have a story and a reason why it matters.  Your sales positioning should have tangible differentiators that separate you from the competition.
2. Know your target market cold.  There is nothing; and I mean nothing, that is one size fits all. Understand who your audience is at both the company level and the buyer level.  This will help you complete the first task on developing positioning statements.
3. Don't think your first customers represent the market at large.  Early adopters are always seeking the "next thing."  That means whomever follows you will get their short term business.  Understand the bell curve associated with sales growth and remain focused on the targets you developed in identifying your market.
4. Don't hire your brother-in-law to run your sales team; or yourself either.  Sales in today's technology driven marketplace is complex.  Make sure that consult with or hire an expert on navigating the intricacies involved with selling.  If you are a founder and know the product and service cold, support and be in the field, but listen as much as you talk and bring help. You attract the early adopters, sales professionals will find the customers.
5. Stick with the plan.  Building a viable pipeline and making it return revenue is a process; just as building a technology is. You wouldn't change your VP of Product out after a quarter, the same should hold true for your sales plan and your sales leader.

The seemingly overnight success of a business like Instagram http://tcrn.ch/14JMF2q has filled many early stagers with the idea of just being found.  There are excellent examples of companies that have had phenomenal returns based on organized and steady growth. 

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From the Sellers Side

I've been blogging for Only Influencers and wanted to share my post from that site here on Eta Consults blog.  Here's link:  http://bit.ly/16NIjpd

Let’s face it buying an email platform in today’s marketplace is a difficult task.  There are so many options to choose from and understanding how each ESP differentiates itself from the field is hard to do.  Having lead sales organizations in our space for over a decade, I’ve had a front row seat the challenges of selling these platforms, and as a result I believe that there is plenty of opportunity for both the buyers and sellers to improve the sales cycle and make it much easier then it is today.

Selling these technologies and their associated services is not an easy task.  On the sellers side they require a heavy investment in the sales cycle and use of trained personnel.  On the buyers side ESP’s will engage multiple departments, each of which have their own needs that will drive their evaluation.  To this I challenge buyers to get your ducks in a row before engaging vendors.  It’s always interesting to walk into a company that hasn’t vetted requirements across departments.  This lack of focus is evident during the sales discovery process when internal stakeholders will seemingly be in the room together for the first time; and begin to disagree in front us sales folks on core needs.  When this happens it’s an indication that project may not be supported well which can and will lead to a disjointed sales effort from most vendors.

For  the rest of the blog:  http://bit.ly/16NIjpd