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May04

Smart Ideas: Experts Revisited

Several Reasons Are Responsible for Massive Failures in High Tech Entrepreneur Startups

It is scarcely easy to start a company. Survival of tech companies in business involves and demands much in this highly competitive world of business. You must ensure quality in services and products so as to attract and maintain the right kind of clientele. There very many marketing strategies that have been used over the years by tech entrepreneurs to attract customers to their investment.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.What is even more confounding, it also costs more. Panning out for venture capital investments is scarcely achieved by 80{dc5ce4b633e26526c18437221e0add71e0c5fc72f5e94cf4fcfc5da2d08880b1} of all venture capital investments. It is mandatory for tech entrepreneurs to be conversant with the Sales Learning Curve.

The margin of contribution per Sales Yield gauged against the all customer transactions is what the sales learning curve will track. Tech companies always have different shapes of the curve from the other companies. To enter the market, tech companies need to go slow.This is a strategy that is practiced by many in diverse industries. The Sales Learning Curve operates under this confine.

When sales reps meet face to face with customers and close initial sales, there is an organizational learning that takes place.This is a very crucial requirement for the success of the organization. After this, there will be the go to the market strategy where VPs of sales are hired.However, this is a strategy that will definitely fail. Lack of investing enough time in understanding the SLC shape for its product in the market always ensures this.

Everyone will see a consistent pattern of highly inflated B round valuations in the tech startup entrepreneurship industry.You will also realize that the down rounds for C percentage and later rounds is greater than B rounds. Entrepreneurs and VC’s lightly consider the cost and time needed for moving up the SLC after completing the Beta product as evidenced by this fact.These two ignorantly assume that the company will gain market traction forthwith when the truth is that the company is ready to commence the SLC learning process. This is a hard to process to determine the time to take.It may sometimes take longer for some entrepreneurs.

Important to note is the fact that as you move from beta release to first release, few technically savvy sales reps need to be hired.These are the ones to be conduits between initial customers and the tech team compensated on the organizational learnings.

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