KHSC Blog

Software sales for dummies - Part 2

Wed, 15 Mar 2023 09:40:15 GMT

Is the customer always right? Sometimes, but do not count on it.

In this next entry we are going to have a look at how to build value together with your prospect.

As mentioned in part 1, the buyer will usually already have gathered their own information before engaging with us.

This means they might have a more or less already fully formed idea of what they want. However, what they want and what they need is not necessarily a perfect or even partial overlap. The better we did our homework in the discovery phase, the better we can now counsel the buyer in how to ideally have perceived and actual need match up.

“Why is that important” you might ask yourself. “I can just adjust my sales pitch to what they want”.

Indeed, you could. And that might even work, and you close a deal. However, by counselling the prospect, we position ourselves as an advisor instead of “the guy who just wants to sell something”.

This trust is another critical piece of the puzzle that is the modern sales process. It will also make it more likely, that our then customer is satisfied with what they bought. In itself valuable, as that ensures account expansion, repeat business and potential referrals.

This speaks mainly to the technical requirements your prospective buyer has. Let’s talk about the human side of things.

Only because you have the better solution to a problem does not guarantee that you will actually win that particular customer. We also need to know why someone does what they do. What is their motivation? Is it to look good in front of their boss, hence wanting to implement a solution that will earn the company more money? Do they want less stress, hence planning to implement a solution that increases efficiency? Are they good friends with the sales guy from your competition, hence putting bricks in your way?

These kind of questions can take time to answer. It will help, if you have target personas defined, i.e. what are common drivers for the job role you are dealing with.

Sometimes it comes down to the experience and gut feeling of the salesperson. Ideally, you will have identified an internal “champion” who is helping you. This is especially important if you are dealing with a prospect from a different cultural background, as there is a very high risk of misinterpreting signs and/or behaviour of your contacts.

You should be ready to build a value proposition if you successfully navigated the above steps. In the diagram below, you can see, that the more significant the overlap of your solution, the prospect’s need and their motivation, the bigger the value you can bring to the table.

The value will be one crucial factor the prospect considers when deciding which vendor to go with. Please note that value at this stage does not necessarily mean a dollar amount. It represents how well your solution might help to go from current to desired future state which we discussed already.

This will be all for this week. In the next part we are going to have a look at what comes after a buying decision was made and the negotiations begin. Thank you for reading and stay tuned!

Software Sales for dummies - Part 1

Thu, 09 Mar 2023 15:28:53 GMT

Or why "Sell me this pen" doesn't cut it anymore today.

“Sell me this pen”. I have a confession to make. I detest that question. While helpful in determining basic sales skills it, in my opinion, grossly oversimplifies the complexities of modern software sales processes. It also is often based on the assumption, especially by people without a sales background, that sales is just extroverts talking a lot and inviting people to expensive lunches.

In this blog post, I will try to provide you with a high-level overview of the different stages of the sales process to illustrate the complexities and hopefully clear some misconceptions about complex selling along the way.

In the past, the sales process looked something like this: A prospective buyer needed to be educated about the product and a “need” had to be established. Meaning that without actively approaching them, they might not feel the need to engage in a conversation at all. Once that is in the buyer’s brain, a “value” can be determined that fulfils the aforementioned “need”. If the buyer was also sufficiently buttered up along the way, a sale would take place and the seller goes to their nearest BMW dealership to spend their commission.

However, what we see today is that a potential buyer wants and needs to engage with a salesperson much further down the funnel. A potential buyer will likely already have an idea of the “need”, as they use a multitude of channels to inform themselves on their own to a much larger degree than it was possible in the past.

For this blog post I will skip the part where the marketing magic happens as that in itself is a separate blog post. So, let’s move to the part where the salesperson gets a shiny new and qualified lead on their desk.

One common misconception that I encounter is, that people think that the first thing they should do at that stage, once they have a prospect on the phone, is to bombard them with facts and figures and flashy marketing fluff about how fantastic their product is. They jump in both feet first and pummel the poor prospect until they give up their resistance and agree to a deal. In my experience this “fly-by-selling” is a less and less successful strategy, as the more informed a prospect is, the less likely they are to readily accept what a sales person says at face value. There is a whole range of reasons behind that fact which I might do another blog post for in the future.

So, what to do? One word: discovery. In this phase we will work with the prospective buyer to learn as much as possible about a wide range of topics. As this is the fundament for most of the subsequent steps, we should invest an appropriate amount of time and effort. The better we understand the buyer, their business, and the reason why they consider us, the better we can build our case and lead the conversation.

Now, with that in mind, let’s deflate our ego a tiny bit and understand, that our solution is usually only a means to an end, not the end itself. Then we can pump it up again knowing, that it can be a very important, even crucial part to reach that end. It helps to fill a gap between a current and a desired future state.

To learn about their current state and t heir desired state we will already gain an understanding if our solution can actually help to fill that gap and how that journey might look like.

Let’s take a break here. In the next part of the series we will show what to watch out for when building your value proposition.

The importance of building a dedicated sales function for startups

Fri, 03 Mar 2023 09:13:13 GMT

Should you have a dedicated sales resource early on? Yes, yes you should!

As a software startup, it's easy to get caught up in the process of developing your product and perfecting your technology. However, it's equally critical to start thinking about your sales function early in your journey . Building a sales function early can help you avoid costly mistakes, accelerate growth, and improve your chances of success.

While it's understandable that founders may want to try to fill the sales function themselves in the early stages of their startup, it's essential to recognize that sales is a specialized skillset that requires experience and expertise. Founders who lack prior experience in sales may struggle to effectively build relationships with potential customers, understand their pain points and needs, and develop a sales strategy that effectively communicates the value of their product. In addition, founders may not have the time or resources to devote to building a sales function themselves, as they are likely also responsible for product development, fundraising, and other critical functions. By trying to fill the sales function themselves, founders may risk not achieving their revenue goals or missing out on key opportunities to grow their business. Instead, founders should consider working with a sales consultant or hiring a dedicated sales team to ensure they have the expertise and resources needed to build a successful sales function.

This does not mean the founder should not be involved in the sales process . On the contrary, pulling the founder or other managers into calls and conversations can increase credibility, provide information about the roadmap and vision as well as provide the founders direct feedback regarding their product.

One key reason to build a sales function early is to validate your product-market fit . By engaging with potential customers and understanding their pain points and needs, you can refine your product and ensure it's solving a real problem for your target market. This can help you avoid investing time and resources in developing a product that no one wants to buy.

Another reason to build a sales function early is to accelerate revenue growth . A strong sales function can help you start generating revenue and building your customer base more quickly. This can provide the financial resources you need to invest in further product development and growth.

Building a sales function early can also help you identify early adopters and evangelists for your product. These early customers can provide valuable feedback and testimonials that can help you refine your product and build your reputation in the market.

In addition, building a sales function early can help you build a scalable sales process . By establishing sales playbooks, identifying key performance indicators, and establishing sales workflows and procedures, you can set your company up for long-term success and growth. This can take a surprising amount of time, depending on the setup. Time that is no longer available as soon as business kicks off and leads want to be qualified, pain points discovered, value built, contracts negotiated, etc.. Getting ahead of the situation from the start will help you to stay there .

Finally, a strong sales function can make your startup more attractive to investors . Demonstrating early traction and revenue growth can improve your chances of securing funding to support further growth and development.

In conclusion, building a sales function early in your software startup journey is critical for long-term success. By validating your product-market fit, accelerating revenue growth, identifying early adopters, building a scalable sales process, mitigating risk, and improving investor appeal, you can set yourself up for long-term success and growth. So don't treat sales as an afterthought - start building your sales function early and reap the rewards.

10 obstacles to overcome for SaaS Startups

Sat, 18 Feb 2023 12:59:45 GMT

Take care of the basics

Starting a software software startup is an exciting and challenging journey. While the potential rewards are substantial, the road to success is fraught with obstacles and pitfalls. Here are ten common problems that software startups face, and how to tackle them. Over the coming weeks, we will pick some of these points to go deeper into where a potential problem may stem from, how it can affect the business and ways to overcome it.

Finding the right product-market fit: One of the biggest challenges for software startups is finding a product that resonates with their target market. To overcome this, it’s important to conduct thorough market research, gather customer feedback, and continuously iterate on the product until you find the right fit. But remember, starting at all to go to market is more important than having the perfect product.

Attracting and retaining top talent: Hiring and retaining top talent is crucial for the success of a software startup. To attract the best candidates, you need to offer a compelling employment package that includes competitive salaries, benefits, and opportunities for growth and development. Focus on "best" over "perfect". And keep an open mind about which talent pool you want to fish in.

Securing funding: Obtaining funding is a major challenge for many software startups. To increase your chances of success, it’s important to have a well-developed business plan, a strong network of investors, and a compelling pitch that showcases your product and its potential for growth. On a side note, get well acquainted with the commonly used jargon, know your KPIs and have a plan how to bring them to the level you want to achieve.

Building a strong brand: A strong brand is essential for building trust and attracting customers. To build a strong brand, focus on creating a clear and consistent message, using consistent design elements, and engaging with your customers through social media and other channels. And if possible, try to find a voice that is unique to you instead of sounding like a marketing course soundboard.

Staying on top of technological trends: The technology landscape is constantly changing, and it can be difficult for startups to keep up. To stay ahead of the curve, it’s important to continually educate yourself and your team on the latest trends and best practices in your industry. It might sound trite, but disrupt, don't be disrupted.

Scaling the business: As your startup grows, it can be challenging to scale your operations and maintain high levels of quality and efficiency. To overcome this, it’s important to invest in automation tools, streamline processes, and hire a talented team of professionals to support your growth. Keep in mind not only the time to find and implement resources, but also consider that it usually takes a certain amount of time before they are fully productive.

Overcoming competition: Competition is a reality for all startups, and it can be difficult to differentiate your product from those of your rivals. To overcome this, focus on creating a unique and compelling value proposition, and continuously innovate to stay ahead of the curve. Don't try to anticipate everything in advance, however. Feedback from your prospects will be the most important source of information, and implementing it faster and better is the key to staying ahead.

Managing cash flow: Cash flow is a critical concern for all startups, and it’s important to manage it carefully in order to maintain financial stability. To overcome this, focus on reducing costs, maximizing revenue, and securing additional funding as needed. That does not mean to not making investments where needed, however. Don't be "penny wise but dollar stupid". Especially as SaaS startup, investing in some solid foundations will make your life much easier once you begin to scale.

Dealing with regulatory compliance: Regulatory compliance is a concern for all businesses, and software startups are no exception. To overcome this, it’s important to stay informed on the latest regulations and to have processes in place to ensure that you are in compliance at all times. Keeping compliant might be a big pain but can also be a competitive advantage if you can prove that it is an inherent part of your product and not a tacked-on afterthought.

10.

Maintaining a positive company culture: A positive company culture is essential for attracting and retaining top talent, and for maintaining high levels of morale and motivation among your team. To build a positive company culture, focus on open communication, transparency, and providing opportunities for growth and development. Please note that this does not mean to keep the "employee-to-beanbag ratio" the same or to scale your once-in-a-month employee lunch catering but a constant re-evaluation of what makes your company tick on all levels .

What was the idea behind KHSC?

looka_production_104809874 — Thu, 16 Feb 2023 19:08:38 GMT

What is the reason behind KHSC?

Why startups and why sales consulting? After many years of experience in software sales, I've come to understand the importance of a strong sales strategy for startups and smaller companies alike.

Passion for Helping Startups Grow

I am passionate about helping startups grow and succeed, and I believe that a strong sales strategy is a critical component of this success. Having worked for two unicorns, I've seen firsthand the impact that a well-designed sales strategy can have on a startup's growth and success, and I'm passionate about helping startups achieve this. Vice versa, I also witnessed how great ideas can flounder if not appropriately positioned.

Expertise in Software Sales

I have many years of experience in software sales, working with some large but mainly small companies. During this time, I've developed a deep understanding of the software sales landscape and the challenges that smaller companies face. I bring this expertise to my sales consultant work, helping startups develop and implement sales strategies that work for them.

Flexibility and Adaptability

One of the key benefits of being a freelance sales consultant is flexibility and adaptability. As a freelancer, I have the freedom to work with a variety of startups, each with its unique challenges and opportunities. This allows me to bring a fresh perspective and new ideas to each engagement, helping startups to achieve their sales goals.

I've set myself up as a freelance sales consultant for software startups because I have a passion for helping startups grow and succeed, expertise in software sales, the flexibility and adaptability to work with a variety of startups, and the ability to provide personalised attention to each client. By leveraging my experience and expertise, I can help software startups achieve their sales goals and take their business to the next level.