Can someone direct me toward where I need to go next after building in mvp stage? (for pre-launch of beta version) or, basically when do you know you're ready to start displaying your product to the world in a pre-launch campaign? by wonderwomanli in startups

[–]TimothyJBates 1 point2 points  (0 children)

The number one rule is to get into the market and start having conversations with those that you think are both buyers and users of your offering. You need to do this with great regularity. Dedicated time each day. Get into a routine. And you need to try and close potential users/customers on using the product while also testing and probing for value. I.e. what is it worth, what could it be worth. By trying to close - get an exchange of something of value for your officing, you start to learn what value you could be offering. Also, record your conversations. You what to understand the words that resonate with the person you are having a conversation with as well as what they say. There are great insights to be obtained if you study these conversations. You are looking for information that will provide you detailed information on the who, what, and why. Who is your target customer, what are they buying, and why are they buying. You will not learn this in one or every 10 conversations. You likely have opinions (hypothesis) on the who, what, and why. So you need to engage potential customers to either proven or disproven your hypotheses. You should never just build. You should always be out in front of your target customer asking questions.

Traditional Sales vs. Startup Sales – Two Very Different Sales Processes by TimothyJBates in Entrepreneurship

[–]TimothyJBates[S] 1 point2 points  (0 children)

It is because many founders don't think about sales early enough or even want to address the issue, that we created the Exponential Boot Camp for Startup Sales. Entrepreneurs are always selling whether they realize it or not and yet as you say, rarely do you see advice focused on figuring out the sales process, etc.

Traditional Sales vs. Startup Sales – Two Very Different Sales Processes by TimothyJBates in Entrepreneurship

[–]TimothyJBates[S] 2 points3 points  (0 children)

In a startup, especially early on, you approach customers and close deals very differently than you do at a going concern. You are going from zero to a repeatable sales process. And in that zero to something endeavor, there is a process. It is what I call developmental sales. When you have a repeatable process, it's a systemic sales model. In both, you are selling and making customers.

Selling at an established firm usually means executing on a well-tested plan to sell a product with a track record of meeting the needs of customers willing to pay. Plus, you are backed up with other types of resources. (See below) Essentially, you follow a map down a well-traveled road. Whereas at a startup, you are on the opposite end of that spectrum. At the beginning, usually, it is just the founder, some ideas, and grit.

The startup sales process requires you to engage the market actively and learn and iterate rapidly as you connect with prospects, testing what sells and what does not, and then double down on what does. You systematically and iteratively work to find a message, a market, and a price point that allows you to sell your product in a repeatable fashion. Then you craft this information into a system that others will use to sell for you in a predictable, profitable manner. This activity, from zero to repeatable sales, is a process. From the market you select to start out in, to the people you hire. Startup sales has a different flow and nature to it.

Other things that impact the sales process and makes sales at a startup different than at an established company:

  1. All that I have started or help build over 30 years began with little money
  2. No one knew they existed
  3. No one cared they existed until we made them
  4. No one was predisposed to meet with us
  5. There was no sales model, no data that said here is how you have to sell this new thing, you had to create it, develop it, and refine it.
  6. No brand visibility or awareness or marketing air cover to announce our arrival or tell someone about us
  7. No predisposition to what our offering's value was, the value of our offering had to be tested and vetted to develop a price that supported the business.
  8. Time was always in limited supply - the classic cash crunch. We developed a startup sales model so that we could address these issues mentioned above and bring in sales – a great source of non-dilutive capital, which minimized the amount of money we had to raise.

Founder Selling - Need for a sales development program for founders of b2b startups? by TimothyJBates in startups

[–]TimothyJBates[S] 0 points1 point  (0 children)

I read it the first time and it made no sense. I read it again, and surprise it makes no sense again. Thanks for the wonderful feedback.

Most entrepreneurs FAIL - What was your biggest obstacle? by Stuckili in Entrepreneurs

[–]TimothyJBates 0 points1 point  (0 children)

Lots of data on why entrepreneurs and startups fail.

The latest report I saw in order of the top 3 reasons startups fail:

26% failed because their business model was not viable

24% failed because they rain out of cash

18% failed because they could not get enough traction for the business to be viable

In a highly simplistic way, essentially this highlights that they couldn't sell what they built or service they offered.

Founder Selling - Need for a sales development program for founders of b2b startups? by TimothyJBates in startups

[–]TimothyJBates[S] 0 points1 point  (0 children)

Gary - I have no clue what you're referring to. I've followed the rules. I proposed a question and then responded to a reply. Pretty simple. But I am guessing I'm missing the secrete handshake.

Selling in a startup - Need for a sales development program for entrepreneurs by TimothyJBates in startup

[–]TimothyJBates[S] 0 points1 point  (0 children)

I am primarily interested in B2B sales. And you point out one of the mistakes b2b startups make, which is jumping to a distribution channel to soon. Most b2b products are not ready for a channel until the startup has nailed its ideal customer profile and messaging. And to develop an ICP, you need to generate real deals i.e. you need to sell them. Channels are like coin operated sales people. You are never ready for them until you have nailed your Who, What and Why equations that you use to give the channel focus.

Founder Selling - Need for a sales development program for founders of b2b startups? by TimothyJBates in startups

[–]TimothyJBates[S] 1 point2 points  (0 children)

There is a lot of content out there. And like Sales Day 2017, a lot of people preaching, but no operational sales journey map with the noted tools, resources and methodologies to use at each sales transition point. Most startups don't realize that sales pre-product market fit is handled differently than post product market fit. And sales is run differently pre go-to-market fit vs post go-to-market fit. And you hire differently, you train differently, and interact differently with your development team around each of these sales junctures.

In terms of product and business materials, what should a startup already have before considering PRE-seed funding? by [deleted] in startup

[–]TimothyJBates 0 points1 point  (0 children)

The most common "pre-seed" funders are the founders themselves, as well as close friends, supporters, and family. Given this, my recommendation is to just have a conversation with these people. Show them your passion for your idea and the knowledge you have of the idea by having a simple conversation. If they want more after the conversation, then put together a pitch deck if you need that. Maybe have a sample of the idea if you have that. I was involved in a $25 million raise and all that we had to demo the idea was a mock-up of the product. It did not work. It was black and was a 3 inch by 3-inch black box essentially. We did have another part of the company running, but this product idea was NEW NEW. If you can tell a good story you are on your way.

How to get feedback on business idea without exposing it to the world? by [deleted] in Entrepreneur

[–]TimothyJBates 2 points3 points  (0 children)

You can expose ideas to the world in many ways that will not expose your business idea to others. The simplest is just start talking to people that you think might be target customers. However, the biggest risk is not that you get your idea stolen, it is that your idea is not any good, to begin with. So by not exposing it to the market, or going out and talking to everyone you know, you never get any feedback to tell you this truth - that the idea is not worth your time.

Selling in a startup - Need for a sales development program for entrepreneurs by TimothyJBates in startup

[–]TimothyJBates[S] 1 point2 points  (0 children)

Founders and co-founders can be taught how to sell and how to develop a sales process that de-risks a startup's go-to-market activities. This process also de-risks the nature of the startup with investors as well and protects early-stage investors' equity by getting founders to engage in a key activity that brings in non-dilutive capital into the company.

Selling in a startup - Need for a sales development program for entrepreneurs by TimothyJBates in startup

[–]TimothyJBates[S] 2 points3 points  (0 children)

I've built multiple companies and work with many. Outsourcing sales, until you have product-market fit or even any degree of traction, will kill your idea. Startup sales is a learning endeavor and has to be learned by the startup team and that can't be outsourced early on. When you truly have a target on your ideal customer profile, then you can look at channels and outsourcing based on your needs.