Companies that have achieved a certain level of product-market-fit reach a cross road – how to replicate their early success.
They have a product that has been developed and is being used by a number of customers but they are having a difficult time finding new customers, their sales process is very long, their delivery is hard to replicate with limited access to capital and resources.
How do you achieve a scalable sales model ?
In conversations with CEOs and listening to their challenges. They are mistaking when they think that lack of revenues is due to lack of sales. They know the problem and the approach to fix it is by hiring some interns and salespeople and drive sales – In their opinion, the problem is very apparent, they do not have enough prospect in the funnel and the medication to resolve it is implementing a sales strategy the relies on dialing for dollars, attend networking events and call prospects. That is not a strategy it is a tactical approach to solve a problem that is not well defined.
So what is a revenue strategy:
Revenue is the overall objective. Revenue are the lifeblood of any business. A revenue strategy encompasses all activities required to achieve the objective.
It has a defined objective and it brings together marketing, pricing, sales, delivery , distribution, operations and many other segments of the business.
Revenue is the strategy – one that takes an organization’s product / market / fit into the next level – one that is focus on understanding your customer acquisition process and how your product integrates into such process, one that is focused on your message and content around the message- one that defines the organizations hiring and development strategies for sales, business development, etc… – one that is focused around your customer and the value that the organization delivers.
Sales is a key component of the revenue plan. Sales has a very specific objective with a defined skills set.
Sales people are most successful when they are focused on implementing a well defined and revenue strategy – they are not involved in defining a marketing plan, understand their customer profile, decide on a direct or indirect approach, their focus is how to maximize the time and return the greatest impact to the organizations.
One of the many issues that small business and startups face, is that early success provides a false sense of reality.
It basically provides a success story to the CEO and investors that may not have been fully vetted understood not tested/, and instead of using the early success as a learning and building momentum, they are moving towards scalability without a strategy.
The key point is that for any organization, the right thing to do – is for leadership to step back and learn- understand the customer, understand the drives that made they purchase the product or service, listen to them and use those experiences to define a proper revenue strategy, that is repeatable and scalable.
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As an entrepreneur with over 30 years of experience, Michael bridges the gap between product, technology and business objectives. His extensive experience with startups, B2B sales management, product development, funding and early customer adoption, provides a unique view for any organization that is looking to design innovation and achieve new revenue objectives with scalable processes.