Part 2... 9 reasons why most B2B start-ups fail to gain revenue traction fast enough

9 reasons why most B2B start-ups fail to gain revenue traction fast enough to avoid a down-round, bridge funding, or layoffs:

1) They hire a VP of Sales early and expect them to build the plane and fly it at the same time
2) Product and sales are not tightly synchronized
3) Stalled sales opportunities are not recognized or tracked early enough
4) They don't invest enough into lead generation
5) They hire expensive field reps too early and too often
6) They don't have a Plan B or a Plan C for revenue generation
7) Not enough time is spent on purchaser profile matching
8) Not enough time is spent on sales process, conversion, and cost per acquisition
9) Sales comp plans are not set properly to generate the needed behavior and results

Item 2)
Product and sales are not tightly synchronized

The problem:
There are enormous natural pressures for your product or service to be built yesterday and to the specifications of your first few "larger" customers. The product priority list can instantly become a labyrinth of the features of competitors, customization of those early customers, and innovative suggestions from the development team. This can ultimately lead one down the path to a product or service that is not differentiated nor scalable.


The solution:
Most emerging organizations need to set up communication opportunities and mechanisms between the front line sales team and the product management team. While communicating the wishes of early customers, it is just as important, if not more, to communicate the product needs of those prospects that do not purchase. Now it is important that those needs are highly qualified and not just delay tactics, but gaining insight into features that would tip your closing ratio on prospects by even a few % points can mean the difference between gaining enough revenue fast enough to not need funding or to have an "up" valuation funding round. Regular discussions between the product team and the sales team is critical, should be direct (not just through management) and can be done during non-peak selling times. Monetization of all these new products and services in 2009 is going to be hyper-critical, be sure your teams are synchronized.

For more information about Product and Sales Synchronization and other Venture Consulting Services (in the greater Seattle area) visit
www.actureconsulting.com or send an email to info@actureconsulting.com


(Items 3-9 coming soon...)

9 reasons why most B2B startups fail to gain revenue traction fast enough -Part 1

9 reasons why most B2B start-ups fail to gain revenue traction fast enough to avoid a down-round, bridge funding, or layoffs:

1) They hire a VP of Sales too early and expect them to build the plane and fly it at the same time
2) Product and sales are not tightly synchronized
3) Stalled sales opportunities are not recognized or tracked early enough
4) They don't invest enough into lead generation
5) They hire expensive field reps too early and too often
6) They don't have a Plan B or a Plan C for revenue generation
7) Not enough time is spent on purchaser profile matching
8) Not enough time is spent on sales process, conversion, and cost per acquisition
9) Sales comp plans are not set properly to generate the needed behavior and results

Item 1)
They hire a VP of Sales early and expect them to build the plane and fly it at the same time

The problem:
It is extremely rare to find a Vice President of Sales that has the experience, skill-set, motivation, energy, and time-- to sell directly to clients AND build and manage a sales team, build the sales processes, and keep coordinated with the product and executive team for a startup organization. There is never enough time in the week to accomplish it all and do it right. The personality traits needed to do it all are also in conflict (people-leader, charismatic presenter, results driver, analytical evaluator, time-manager, tireless workaholic, never satisfied, ego-driven, bullet-proof, resilient, and maven, to name a few). By the time a VP/SVP of Sales has proven they have the full package to accomplish it all, they have either made a good amount of money and they are not motivated the same way, or they are burnt out over years and years of carrying and delivering on quotas. Now take what I have just written and start the stop watch for anywhere from 4 to 18 months to deliver aggressive revenue traction and to catch up with the company's burn rate.


The solution:
Most emerging organizations actually need a Sales Director and an active/involved Sales Adviser to work in tandem to set the organization up for revenue traction BEFORE they need a VP of Sales. (They need a sales pipeline captain and a sales strategy/process captain.) Whether the organization's best move is to go with outside sales, inside sales, ISO, channel, or business development-- direct selling and pipeline building is a full-time job. Building lead generation, sales strategy, sales presentations, sales goals, comp plans, sales to product communication processes, winning sales proposals, sales training resources, account on-boarding resources, purchaser profiles, lead acquisition cost reports, sales acquisition cost reports, sales dashboards, conversion reports, activity reports, board prep reports, sales team promotions, sales team leadership, etc.,etc., is a full-time job. The good news is, there are likely some very good sales consulting firms in your area that can help you build your sales machine and to help you find your Sales Director (your pipeline captain). Once you have your revenue traction and many processes are built, then you can hire the VP of your choice and focus on the specific traits you need to take you to the next level.

For more information about Startup Sales Consulting Services in the greater Seattle area visit
www.actureconsulting.com or send an email to info@actureconsulting.com

(Items 2-9 coming soon...)

Acture Consulting Services for Emerging Seattle Companies

(SEATTLE, WASHINGTON) We are pleased to announce two important developments today. The first is that The Prosys Group is now Acture Consulting. Acture is a word that means "Action."

The second development is that I am officially joining Acture Consulting as a Managing Director. For nearly 2 years, Neil Crist and the team at Prosys have focused mostly on Product Management work for emerging companies in the Seattle area. Now Acture will have a significant alliance and thought resources in providing value to start-up clients. I will now head up the Sales & Customer Acquisition Strategy practice for Acture. I have been the VP of Sales at several emerging startups, I am on several advisory boards, and I have engaged in several consulting opportunities previously.

For my long-winded Bio you can read it here read it here.

For Neil's impressive Bio you can read it here.

Why now?

Now is the perfect time for our services. Companies will need to look very deep at the core of their product and service offerings and what differentiates them from competitors or from getting canceled altogether. They will need to acquire customers with skill, value, efficiency, and integrity. Organizations will have less or no budget for new offerings so it will be a game of switch costs and with immediate return on investment. They will need to do more with less and have with no room for inefficiencies.

We are gearing up for a busy 2009, assisting start-ups in the areas of business, product and sales strategy. We look forward to partnering with companies in achieving this goal.

Read more about the Acture Consulting service offerings here.

The DNA Selling Method

The DNA Selling Method by Patrick Henry Hansen is, in my opinion, the most modern (and effective) sales training book that I have read in a along time. Every single one of my sales team members now is instructed to read it within their first 3 days of employment. It is organized, methodical, and has interesting historical references to make it engaging for various learning types. The book focuses in on techniques that are very applicable if you wish to build your sales team focused on high-integrity and consultative sales values.

you can find it new or used on Amazon.com here...
DNA Selling Method on Amazon

or you can even order a free copy through their own website here... Patrick Henry Hansen Free Book Offer

I highly recommend this read.