United States, Amazon, Norway discussed on Startup Sales
CEO of a company called Sales Kuala and we help early stage enterprise BB startups to build their sales process and ramp up their sales background personally expense about fifteen years in Silicon Valley of worked at three different B. Two B. Enterprise Tech companies getting them each of those wrong basically zero revenue to the first couple of million in revenue so it's something I've done three different times at three different start ups one in the Ad Tech Space Education Technology in two in fintech financial technology space most recently with a company called blend some people listening might recognize blended actually at the time that we're recording they just raised another hundred thirty million series e and so I think they're just brimming on the Billion Dollar Valuation Company that sells to the the banks lenders across the United States so what I've done in my past today over the last couple of years where assails coaching company where we work with startups out them build and implement their selves process the hardest part of this early stage still no sales process trying to build it's putting it together make sense of everything startups are hard as already but and you add sales to mix in psychology of everybody else all right so let's just kind of jump into it and talk about the early days of sales and you have no clue Ryan how do you get going great question the first thing you do to get going is just like first of all the first biggest mistake I see most make is that they try to sell to everyone so if you're literally trying to get off the ground you're in you're just trying to get going the best thing you can do is pick a specific target it market or a niche and even if that's just a hypothesis the addendum to that say look we're going to focus on US based credit unions for now they look over the next couple of weeks for the next three months let's get really specific dial into that customer base and start talking to them and identifying whether or not what use the problem that they have and does our product fit that problem so I think that's the best place to start is just start with a target markets he can get really get it understanding how they view the problem that your products now when I'm working with a lot of startups they all tell me yet but we could sell to this pre hill we sell to these people would you tell them what do you suggest to do when it comes to that I said great that's probably why investors are interested in you the total addressable market is in the case billions of dollars and to get to a billion dollars you have to get customer number one. I right so you take a very a common example like Amazon even though it's in the consumer space like Amazon started with books and then now they've taken over the world so the same principle applies with yours startup because like I imagine the problem I think this is so crucial to the mindset when you're going out and talking to your target customers because when you are out there selling the most important you can do is view everything from the lens of what is the customer's problem and so if you're trying to sell to a lot of different mysteries you're trying to sell to fortune five hundred's and you're trying to sell to the mom and pop store down the street even though the fortune five hundred in the mom and pop store might have the same problem on surface everything else behind that is going to be totally different and so the only way to start building some expertise and building some leadership in that marketplace is to focus in so you can get re really good and become an expert in the problem that your target customers have once you're clear on the problem and help your customers understand how that problem should be solved then that's when sale can take place so that's always the way to think about it I think it was David Packard Hewlett Packard. He wrote this years ago where he said most ideas fail not because of lack of opportunity but because of lack of focus paraphrasing a little bit more recently I've seen tweets from like bill Lee and Paul Graham whether said startups don't die of starvation they dive indigestion and so going out and trying to sell to everyone makes it so that you don't really understand on their property from their point of view trying to sell the everyone means you end up selling to one and it also I think will help you Mitchell dive into this later but in the growing face when you see see now you have your clients now how do you scale start to scale this so it also helps you there when you're when you're focused as well yeah for sure I mean some of the clients that we work with right now for example we're working with a company that's based in Norway and they've built a platform they've got some really implementations a couple million dollars in revenue Norway and now they're coming to the US market they happen in the healthcare compliance space so just think about that for a second healthcare compliance that's probably almost a trillion dollar market opportunity says like okay where do you start and so with them what we did is we paired that whole opportunity down to edifying thirty healthcare systems in the state of California that are best positioned to take advantage of their platform and then taking a very targeted Albay selling approach to those thirty institutions because even within those thirty organizations institutions there's probably ten or fifteen key stakeholders influencers decision around that that purchasing around solving that problem so now you've got thirty institutions times ten let's three hundred people so you can spend like sending out personalized messages whether it's linked in email on conferences all of the work that goes to creating conversation like the more you can focus the more you can personalize in create real station as opposed to just a batch and blast approach absolutely. I think it's also really good when you're focusing down like this is to focus on it's GonNa be the quickest and easiest to close as well yes it's funny you mention that because we I was just mentioning when we are prepping for this out of that was on the call with client that's in India and Giraffe for him he's in the lending space as well and he's looking at whether or not sell to credit unions or non bank lenders which in his world they're similar financial institutions that deal with lending but credit unions non-bank lenders actually quite different even though they both have the same core problem we're just talking about and so he's had a really substantial conversation with chief lending officer at one of these institutions and he's trying to when he was talking to that she flag officer she actually had four or five areas within their lending process where he could actually implement and so now it's like okay so I got to put the pieces of the also together a little bit here has seller say while where should I implement I and so we drew a drought like a very simple two by two Matrix so if you're listening to podcasts solving that problem that were identified is the solution to that problem high-value solution to the organization or is it low like okay fixes like a minor nuisance. was it something that fixes like a major disturbance or obstacle or obstruction to their way that they do business so that's high versus low by on the x axis you think about on one side is friction being high implementation costs high time watts of integrations and you think about low friction which is how do we slide in really quickly in order to get some wins so quick wins dividing out the solution that you could provide into those four quadrants of high value versus low value high versus low friction than happing out they exercise that I do is say okay within those four or five different areas that he could implement his solution with this she lending officer actually sitting down with her and saying okay well let's map this out which of these are highest value and which of these are lowest friction and then that helps you choose how to get the quick win where he can land and in that account and then start with something that's lower friction that may not be the highest value but proves success and then it buys you some time to then go look at something that might be more friction by a much bigger win for your customers and so when you do this exercise not just for yourself but actually include your key stakeholder on the other side now effectively done is create a collaborative environment and you're not even selling anymore you're just like setting up a project like this project management let's just figure out these projects to work on and by one can we implement this thing and how do we prove success where the metrics that we're gonna be using to track whether or not this implementation was successful or not then all of a sudden Voila you've got conversion I think that's an amazing exercise that early stage founders should be doing right from the start they first have to understand what it is what pain points solving and then be able to map that out what has the highest value yeah and starting you don't always have to start the highest value problem there's like when we I started when we were at when I was a blend I mentioned at the top of their conversation like division of blend when we started it was a one click mortgage a one click residential mortgage now companies around for seven years and we're still the insurance still years away from having one click mortgage right but when we first started the first implementations we looked at all of the different paths ways all the different steps throughout the lending process and there's lots of logjams in the lending process where a lender has issues document collection documents compliance checks getting approval selling that loan to an investor pricing controls like over one hundred different steps in a lending process so we didn't necessarily go in and say well this one-step is the biggest value like if you could figure out how to approve a loan in one day will that's GonNa take years to solve but if instead we said look dot collection for your consumers that we could really easy interface for your borrowers to begin a mortgage to just get the basic information and then flow that data into your loan origination system would that be useful oh and to add lender they're like yeah that's one of the biggest problems that we have in whilst not the the biggest problem it was easy for US implement within months we could go up and running yet up and running with those lenders and that was our semi high value but the friction was relatively low because all we had to do is build the interface collect docs and then send those docs into the lenders all systems for them to handle from there and then slow you can creep into the other parts of the process can land and expand that expand kind of cool all right so let's say you've got you've done this society mapped it out you started collecting clients at what stage do you think is the best to start actually building a team hiring your for salesperson all man get that question a lot and usually it's after a startup team has hired and fired their for salesperson and so I think the mistake that most teams make is they hire too soon meaning that the ticket step back here so when I talked with our founders they usually fall into one three buckets People so the one kind of started.