Despite the fact that many presume that starting a tech company is easy, it is hard.For a tech business to make profits and survive in the competitive world, so much is involved. You must ensure quality in services and products so as to attract and maintain the right kind of clientele.Many types of marketing have been used over the years by companies so at to attract customers.Included among these are include radio, newspapers, television, and among others.
It is known by many that it takes longer than expected to start hi-tech companies. It also costs more to start tech companies than expected.It is a well-known fact that about 80% of all venture capital investments rarely pans out. It is mandatory for a tech entrepreneur to be conversant with the Sales Learning Curve.
The Sales Learning Curve will easily track the margin of contribution per Sales Yield gauged against the all customer transactions.Different tech companies exhibit peculiar shape of the curve. There is an imminent need for tech companies to go slow before they enter the market. Many people are aware of this strategy in their different industries. The Sales Learning Curve operates under this confine.
An organizational learning takes place when sales reps meet face to face with customers and close initial sales. The success of the organization heavily relies in this for its success since it is a very crucial tenet for the same.Going to the market as a requires hiring a VP of sales after completion of the beta product after which hiring many reps to "drive revenue and get to breakeven" is done. This strategy fails most of the time.The reason for this is lack of investing time in understanding the SLC shape for its product in the market.
In the tech startup entrepreneurship industry, a consistent pattern of highly inflated B round valuations is evident. There is a begging realization that the down rounds for C percentage and later rounds is greater than B rounds.This is proof enough that the entrepreneurs and VC's lightly consider the cost and time needed for moving up the SLC after completing the Beta product. The company may not immediately gain market traction as assumed by the two since it is only ready for starting the SLC process. The time that this process will take is not consistent and easily determined.It may sometimes take longer for some entrepreneurs.
You will only need to hire few technically savvy sales reps as you move from beta release to first release.These are the ones to be conduits between initial customers and the tech team compensated on the organizational learnings. To learn more, visit forums with an international speaker who will share his or her experience to help you solve your issue.
Check out https://www.youtube.com/watch?v=mHVJF9VaWfo for additional details.