Archive for Sales Technology

The Most Important Entrepreneurial Choices

Entrepreneur

I’ve read a great deal about entrepreneurs, and almost everything focuses on that “aha” moment when an idea came to someone and how it then became the driving force that created, changed, revolutionized, or otherwise altered a business segment forever.  With all the press this moments gets, the focus on the incredible stroke of genius, it’s natural to assume that the make it or break event in any start up comes with that first thought conception.  I’m not so sure.  Okay, that was me being polite.  I have stronger feelings. I’ll admit it.  I’m actually pretty sure that moment is the least of the three most important decisions you can make in a startup.

I’m not suggesting the moment isn’t necessary, just that there are thousands (maybe millions) of brilliant business ideas that never result in a successful company, never change the world, and never alter a business segment at all.  History is filled with brilliant ideas that never got to the market.  Without the idea, the company can’t exist, but even with the idea there’s just no guarantee the company will succeed.  I believe there are three critical choices, and the idea, while critical, isn’t as defining as the first two.

To create any startup, you’ll need to find investors and find partners.  You’re stuck with those two decisions.  A concept will (and should) adjust as market and production realities impact decision-making.  If you have the wrong investors or the wrong partners, the brilliant dream becomes a nightmare.  If you secure too little capital or too few human resources, the brilliant dream fades.  The idea is important, and it will likely drive your company culture and attitude, but without good decision-making when it comes to the first two decisions, the idea joins the other unrealized dreams in the annals of history.

How about you?  Are you looking for the right investors or just any?  Are you seeking warm bodies or are you actively seeking partners whose strengths will help support your weaknesses?

Does it seem like I’m telling you not to focus on your core business?  That’s not my intention at all.  Hang on to your idea.  However, in a business environment where most technology startups are going to fail, don’t let your aha moment go to waste.  Choose your investors carefully.  Choose your partners carefully.

Unread Volumes

Library pic

By Tom Fedro

The other day, I ended up browsing the internet and focused a bit on library closures.  I’m really just struck by the similarities between our libraries in the United States and the whole concept of data management.  Of course, I have opinions about public libraries and the services they provide, and I have many memories about my experiences within them.  (They even go deeper than being told to “hush!”)  The current state of libraries in our world, though, has some clear similarities to how data is managed, and I thought I’d write a bit about it.

Really, libraries are closing because they’re unused.  I realize that’s a gross generalization, and I realize that they offer critical help to many in our country who are without internet connections and have no ready access to information.  I get all that.  That may be enough of a reason to keep a library open.  I’m just struck by how much data a company has that’s unused.  The typical sales enterprise, for example, can draw from a database critical metrics and yet it doesn’t.

Do a quick Google search for “Important Sales Metrics” and you get varied results, but the problem I have is that the metrics everyone claims are important are almost always results-based metrics.  Time from suspect to prospect.  Time from prospect to lead.  Time from lead to qualified.  Proposals vs. closes.  Sure, these statistics tell us something, but in my mind, metrics ought to be process-based.  We ought to look at what our sales department does (I mean the actual actions) and how they impact sales.  Realistically, if your standard sales reports show you a problem, you can’t take real action without an objective, data-driven analysis of the actions providing the results.

The problem for me is that the data is in there, unused like countless of volumes at your local library.  Almost all CRM software has the capability to record actions, but the data is almost always unused or left only in the hands of the salesperson.  Realistically, wouldn’t you want to know that initial follow-up by email resulted in 12% higher sales than a phone call and resulting message?  Wouldn’t you want to know the reverse?  Doesn’t it make sense to discover the most successful salespeople in your organization do something different and duplicable? You can exhort your sales people to do better, but exhorting them without direction is ludicrous, and when you have an entire sales force, measuring their results isn’t the same as measuring their performance.  Results come from performance, and performance is the obligation of management to…well, to manage.  Why aren’t we looking at that data?

If we were, do you think we’d be catching on to the changing company-marketing-sales-customer dynamic a bit better?  There’s a great deal of information to be mined, but as long as we’re looking at the same queries and the same reports we used twenty-five years ago; that data is just a library sadly on its way to closure.

When It’s Time for No

No

By Tom Fedro

I can remember working through the process of creating filings in order to take a startup public, and we were well on our way to making it happen only to have things change at the last moment and end up taking an acquisition offer as our way to liquidity and value to our shareholders.  I remember making my first OEM deal with a major PC manufacturer.  Those were (and still are) exciting times.  Something happens along the way, though.  When we started to succeed, we were now being pursued by the money as opposed to the other way around.

If you’re in the midst of starting your venture, or if you’ve been through the process; you already know what an exciting and yet desperate time it is.  Conferences, meetings, speaking engagements, marketing partnerships of tenuous value, and activity—a ton of activity—and it’s really somewhat of a scattergun approach.  All of this activity is designed to expose you to investment and to create buzz, and the hope is that something will come from it all.  If it doesn’t cost a fortune to attend (and sometimes even when it does) you’ll be there.  Some startups never make it past this stage.  Investment money doesn’t come in fast enough or the business just doesn’t take off.

I’m convinced some startups should be past this stage but just can’t break free of it.  If things go as you hope, there will come a time when the value of the exposure activity and the frenetic pace of presentations, conferences, and endless cash-less marketing meetings will be worth far less than the effort expended.  You may react differently, but when that time came, I was confused and unable to immediately recognize it. I didn’t say “No” enough.

Where are you in the development of your company, and are you behaving like you’re still a few steps back?

The Life Factor

worklife

By Tom Fedro

It’s amazing how crazy the world of startup development can sometimes get.  I think about it sometimes.  We live our lives trying desperately to create something so that we…well, so that we can begin living our lives.  I think about it often.  Are we putting the cart before the horse?  Are we counting our chickens before they hatch?  One of the advantages of this new economy is that we can tailor our world, in an entrepreneurial sense,  to the life we want. We spend so much time working for our future that we forget we have choices in the meantime.

I’m a fan of Michael Wolfe.  He describes himself as a serial entrepreneur and has had tremendous success building businesses over the past 15 years with several highly profitable exits.  What I find amazing is his ability to manage living a life with building companies.  He wrote an interesting blog piece about staying in shape while working long hours and has for a long time maintained that while a startup will consume a great deal of your life, it ought not consume all of your life.

It’s not really all that out of the box in terms of philosophy.  In fact, the term workaholic was created as a kind of a warning in this area.   However, we in the world of entrepreneurialism tend to idolize the men and women who work nineteen hour days every day and watch their relationships, their health, and their social lives disappear in the process.  Add to that mix the fact than almost every startup fails.  This advice comes from a man who’s successfully built five.

This Wolfe guy competes in Triathlons at world class times, Ultra-distance running, Biking etc…Okay, so are we looking at a man who’s already achieved the success that allows him to live?  I don’t believe so.  From the outset, Wolfe suggested the key to a startup wasn’t sacrificing your life but designing the business around the life you want to lead.   His advice?  “Pick where you want to live and the people you want to hang out with first.  Then find a career that lets you do that.” Very good advice and his thoughts on working out in the morning to make sure you are consistent – I am now a believer!

How are you balancing your life with your dream?