Start-up companies face challenges getting sales traction. It doesn’t matter if the goal is IPO, acquisition, or more VC/angel funding – you need to get sales ramped up quickly. Here are some keys to success:
- Ensure that all activities are customer focused. Engineering must focus on actual, not perceived needs. While you need to get the technology perfected, you must meet customer needs and respond quickly to customer inquiries & support issues. You are perceived by many prospects as inferior to your established competitors – so don’t risk alienating your limited prospects. A start-up company must view all departments as sales support.
- Hire a sales team that has a history of startup success. Your field sales team should be given autonomy to do their jobs – no micromanaging! Set standards on price discounting & margin requirements up-front (within reason – what margins do you need if you have little or no sales…).
- Consider a channel sales model. If you can reasonably expect your channel partners to understand your technology, then engaging them in your growth makes sense – especially if you can’t hire a significant direct sales force early. See http://bit.ly/KKD7Q for a discussion on channel sales partner selection.
Start-up risk can be limited by working smart. Take stock of your financial resources, and think out of the box. Combining these sales strategies with guerilla marketing & social media will increase your odds.
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