Is Your Free Service Worth My Investment?

No matter whether you sell for someone else’s nascent company or you are the CEO of your own startup, what is the goal of your enterprise? If you tell me it’s to attract investors, you may be selling yourself short, literally.

Are your activities focused on chasing after angel and venture capital investors as the goal of your venture? How about shifting your focus to acquiring customers.

Most investors will tell you that seeking their support should be your last resort.  It’s a lot better if you have customers, and paying customers at that. Otherwise, you just may have traded your company for a job, essentially working for the investors’ company.

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3 Tips for Speed Dating Your Venture’s Investors

How many of you are participating in entrepreneurship programs at universities, incubators, and accelerators? Then you have participated in business plan and pitch competitions for your venture. These pitch and business plan contests,  conducted during and at the end of your studies, are one of many highlights of your hard work as the CEO of your venture.

Pitching is where the rubber meets the road. Where fantasy meets reality. Where your venture meets the outside world of investment.

Are you looking forward to this opportunity or do you dread getting up in front of a bunch of investors and presenting your venture? [Read more...]

4 Tips for Customer Discovery Conversations

If you are the CEO of your startup, are you experiencing anxiety over having those customer discovery conversations with potential investors and early-adopters? What if you speak with a prospect and they don’t like your idea? How will you handle a negative response? Will you shut down your startup and take rejection personally?

Customer discovery conversations are where the rubber meets the road, where fantasy meets reality, and where startups get a healthy dose of the business world outside of a university setting.

There’s a fascinating anthropology involved as you identify the business ecosystem in which you would like to launch your venture.

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Wearing Your Value Proposition like A Second Skin

How many of you treat your value propositions like a closet full of clothes? You get up each day and decide which value proposition you are going to wear. In your mind, depending on the customer, your value proposition is disposable and subject to whim. In your mind, depending on how the prospecting conversation goes, you may swap out one value prop for another.

Really?

Value propositions are nothing less than the tangible benefit a customer or investor receives from doing business with your company. While you may tailor the tangible benefits side of the equation, your value proposition is nothing short of communicating your core values to your customers and investors. [Read more...]

5 Tips for Selling Your Venture to Investors and Customers

Does the thought of pitching to investors and selling to customers excite you or make you extremely uncomfortable? Some of you are very smooth at presenting, but not very successful at receiving funding. Others of you sound robotic, spitting out some artificial sounding sales spiel that you don’t believe yourself; you end up short-changing investors and customers on your viable venture.

Regardless of which one of the preceding scenarios describes you, Failure to Obtain Funding from investors and Failure to Acquire New Customers is the result of some mis-perceptions of your role as the CEO of your start-up. [Read more...]

4 Tips to Avoid Leaving YOU Up to Other People

Are you frustrated about why no one seems to “get” just what it is that you can do for them? You tell them your job title, or your degree, or you describe your skill sets. Perhaps you pepper your conversation with details about your products, services, platforms, solutions. You pitch to them. You sell at them. You demo for them.

And then you stop. Short.

You leave it up to them to connect the dots. You leave it up to them to figure out how they can use just exactly what it is that you offer them.

Why would you leave it up to them to figure YOU out?

They have better things to do with their time. Higher priorities.

Unless, that is, you have taken the time to do your homework before you spoke with them. Unless, that is, you have taken the time to figure out what the dots-to-be-connected look like in their organization. [Read more...]

Why Pitching Doesn’t Sell

It could be that no one really wants to catch whatever it is that you are pitching at them. Or is it slinging at them?

Did you ever think about your “pitch” that way? News flash: Potential customers and investors do.

With everyone pitching all sorts of stuff in their direction, the person on the receiving end just might want to duck, for starters. And then run away from you. Plus, you might miss your target, entirely.

Some of you are probably thinking about your “pitch” or “demo” slide deck right now, as you are reading this post.

Don’t get me wrong. There are some incredibly fine pitch folks out there, for sure. Except that what they call a “pitch” really is a business development art form.  They know it, I know it. Kudos to them! [Read more...]

Get down to your meat and potatoes

You are responsible for understanding and articulating, in language everyone can understand, how your core capabilities, your products, your services, your platforms, your intellectual property, provide value to your colleagues, your organization, and your clients. (from Do YOU Mean Business?, p 61)

Keep it simple and succinct, please.

No matter how many degrees or certifications you have earned. No matter where you teach. No matter how many fantastic deals you have closed. No matter how super-duper you feel your entrepreneurial idea is. No matter how complex you think what-it-is-you-do.

If I don’t understand what you and your product, service, or venture are all about, I won’t contract for it, buy it, fund it, or give you my time.

Have you ever thought about you and your product, service, or venture from the customer’s / investor’s perspective?

Your parents and family (FFF or, in venture capital speak, Friends, Family and Fools) may be diplomatic  as they throw more bootstrap money in your direction and tell you, “Well, that’s nice, dear.” Perhaps you became an unintentional entrepreneur and are now trying to build your business. Your colleagues and customers may tell you: “OK, I’ll think about it and let you know what I think.” Except they never do take the time to think about it and certainly don’t get back to you. Your employers may tell you: “We’ll see how that fits into next year’s budget.” Which means they put your idea on the farthest back burner in the nether reaches of the furthest business cosmos they have in their arsenal.

Because they not only don’t “get” what you do. They also don’t “get” how what you do helps them generate revenue. Because that’s what they want, and need, for you to do for them.

Just get down to the point of what it is – that tangible benefit I will receive – from doing business with you. Why is working with you valuable to your customers and funders,  in helping them build their businesses.

How does working with you translate into my bottom line? Not so easy, is it?

The more words you throw into your pitch or product/service/platform deliverables will not make what you are selling more attractive, lofty, intellectual, or valuable. It’s just a whole lot more verbiage to slog through.

People don’t have time to slog through lots of words. Especially when the words you’ve chosen appear to dance around the meat and potatoes of the subject.

How does working with you translate into my bottom line?

The meat and potatoes is all about what you can do for them. It’s not about how great you and your idea or product is. It’s not about requiring them to think about how they can use your services in their organization.

They don’t want to have to Think; they want to Do. Connect the dots for them. Make their decision to fund or purchase you and your venture the obvious conclusion for them to reach.

Serve them a meal, not an abstract conversation that leaves your customers and funders feeling up in the air about taking action.

Give them something solid. Something they can chew on. Something they readily envision making their business lives more rewarding.

What’s your value proposition? I bet it’s delicious.

Babette Ten Haken provides technical people and other sellers a solid strategy for how to explain a product, its benefits, and its value in ways that buyers can easily understand and sellers can comfortably present. She gets people together who are often on opposite sides of the table, like engineers and sales people or entrepreneurs and investors. Her company, Sales Aerobics for Engineers®, LLC,  works with technology-intensive entrepreneurs and manufacturers, focusing on revenue-generating business development strategies to take your business to the next level. Her book, Do YOU Mean Business? was named 2012 Finalist, Top Sales & Marketing Awards.

Think like a Venture, Sell like a Pro

Last evening’s University of Michigan Student Venture Showcase underscored that today’s business development environment is, indeed, global and competitive. The student teams had completed the TechArb8 program which is part of the Center for Entrepreneurship.  Each team was assigned a mentor to assist them in assessing the viability of their product concept, how a pivot in their thinking might move their concept forward, and determining next steps for their venture.

As a mentor in this year’s Showcase, I find that ventures and mature manufacturers each can take a lesson out of each other’s respective playbooks. Mature manufacturing and service companies often are in the same position as second stage start-ups: stuck in the space between early adopters (or having a loyal customer base) and mass or larger market attraction (having the marketplace pull your product, service, or platform into it).  Entrepreneurs, especially the technical ones, are at a loss for how to have the customer conversations that even your customers didn’t know they wanted to have with you. Sound familiar? [Read more...]

Selling Your Leadership

In coaching and mentoring the entrepreneurial community, I’ve found that many startups are still bamboozled by what’s required for successfully negotiating business competitions. A colleague from the venture capital community recently told me that one VC firm heard over 3,000 pitches last year…and funded only 6!

There are a lot of similarities between the entrepreneurial community and the mature business community both small, mid-sized and large.  What’s involved in business development is selling. For technical entrepreneurs and technically-based companies, the word S-E-L-L remains as the most dreaded four-letter word there is. Yet it’s the basis of business, no two ways about it.

Business development will never be an intellectual or academic exercise.  It’s transactional.

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