OK, You're At V0.9 Of Your New Software App. How Do I Sell It?

I've done my share of starting up new companies, divisions, products, and even a spinout.  The experiences have been tremendous and I wish I could say I handled all the lessons with grace but there were a few times when I didn't.  That's probably my first thing I'd do different...

1. starting up a new business is incredibly stressful.  Probably the most stressful thing you could possibly do with a professional career.  Lee Trevino once said that pressure is playing for three dollars with two dollars in your pocket.  That's exactly how I felt many times.  Do your best to handle that stress with dignity and grace.  Smile at the grim reaper (AKA VC's) and thank him for coming.

2.  Don't waste a dime of effort developing partnerships.  It's very tempting to say "hey, I've got a product that every customer so-and-so already has so if I partner with so-and-so, I will have thousands of customers!"  Not gonna happen.  Doesn't work.  Get out and sell your product.  Do it now. 

3. You can't put all the sales responsibility on your subordinates.  Maybe you're a geek and have never sold.  Well go get some sales training and put on your sales big boots because if you can't sell, you're probably dead right now and just don't know it.  Early customers want to see the genius behind the risk they are taking.  And that's not some VP of sales you hired to contact 300 people a week.  It's you.

4.  New product features are rarely the answer.  It's an easy trap to fall into.  The reason things aren't selling is because they lack certain features so let's invest more.  You can play that game all the way until you crash into the ground when you run out of cash.  Get a product that someone is willing to by as is.  And then go find more of those customers.

5. software-as-a-service revenue models take time.  Not everyone is netflix who can charge a bazillion people $11 a month.  It's a good business model but you need plenty of cash to get it to break even.   The nice thing is that once you do, it's a helluva cash machine.  Don't lose patience and stop selling after only six months.  Have enough cash to give it a full shot if you believe in it.  18 months before you call it quits.  Miracles can happen in months 10-12 but most people give up before they get there. 

Five Things To Remember When You Hire Your First Sales Rep

Inevitably, a business grows to a point where the only way you can maintain a similar revenue growth is by landing new customers.  You've worked hard to earn the reputation you have with the few customers you do have and they have rewarded you with repeat business.   You are proud of what you've done and have the scars to prove it.  Here's some things to remember as you take this important next step by hiring a sales person:

1. You can't stop selling.  For small businesses, the customers expect to talk to the owner, not a sales rep.   Hire someone you can work with on landing new accounts.  Give the new person lee way to do her thing but do not relinquish ownership of landing new customers.  She will need you to help land the deal.  Plan on spending a day a week with the new rep.

2. Figure out how to make the new sales rep successful.  Pay packages should have some sort of commission structure.  4-10% of everything she sells is a good rule of thumb.  Be clear about what earns her commission credit.  Make sure she is doing most of the heavy lifting on new accounts so she can get credit when it hits.  DO NOT subvert your new rep by working around her with potentially large clients.  Yes you can save some commission checks if you just do it yourself but you will also quickly find yourself looking for a new rep.  Remember, if she is successful and you do pay out commissions, you are winning too.

3. Help your new rep with introductions and referrals.  Make a list of your top contacts and ask yourself which ones you can give to her.  Invite her to customer meetings and introduce her.  Make her feel like she is an important player.  A sales rep who feels appreciated will always give you twice the effort of one that doesn't.

4. Spend a day a week with her.  Help make cold calls.  Help her develop new leads.  Figure out how she approaches sales and let her see the same in you.  Become allies.  Recognize early advancements and celebrate often.

5. Surround the new sales rep with supporting marketing efforts.  Make sure your website and other social media match your brand and makes her look good.   Ask her to gather information during her conversations and use that information to improve your marketing.  Make adjustments as you get feedback.  Listen often.

It's easy to get busy with other things when the new sales rep shows up and hope she is successful.  Without doing these five things, she won't be.