DISQUS

Mark Nagurski · 1 year ago

Interesting post. Funnily enough it's essentially the same - but reversed - view from inside a sales and marketing startup. We began with an experienced business development team and so getting clients on board has never been as issue.

On the other hand, we've had to work hard at building the infrastructure, technology and client management processes that we had more or less taken for granted in previous employment.

I'd suggest that every startup needs to take a cold hard look at its core competencies, plan ahead and look to plug the gaps as soon as is practical.

Also, just to emphasise, I think the linked post "Launching a Startup is Barely Step One" (Instigator Blog, Feb 6th) is certainly worth a (re)read.

Banner Boy · 1 year ago

Here's a "180" for you.

Our main business found a very unique niche and need for a software app for athletic directors at high schools. We knew we could sell it all day long (our organization was very heavily tilted towards marketing and sales.)
Well, basically, the exact opposite happened. We were selling and marketing like crazy, but never managed to get the "right" tech team in place.
Well, we eventually sold that business, and the new owner dusted-off the app and did it the right way.

It's amazing how sales and marketing get neglected, but I know from experience, the opposite can (and did) happen.
thanks,
Chris
(Banner Boy)

Tony · 1 year ago

"Ultimately, the most successful software startups aren’t really technology companies, they’re sales & marketing companies."

I think this is a very short-sighted statement. Any company that places more emphasis on one piece of the puzzle verses another, is compromising something. We see it all the time. there are companies that build killer technology, but don't flourish because they create no buzz or brand value because they don't value it nor think its a worthy investment. But the opposite is equally as true, and in fact I would argue probably more true - that there are just as many if not more companies that invest big dollars buzz-wow marketing with loaded promises, that simply don't deliver on the promise because they compromise the integrity of their product (and try to over-compensate with marketing).

I think neither factor is mutually exclusive. If you get into this business you just can't compromise anything. Both factors are critical to success and very interdependent.

I think this issue exists partially because our industry works within its own bubble. Successful non-tech businesses have been doing this for years, and its by no means a "new" issue for new companies. You have to value all factors of startup equally, and no one can trump another.


Too often I see these "loaded mantras" thrown around in this our industry as new insights or revelations into business entrepreneurship, and I think we need to take a larger view at the recipes for successful business outside the context of only this industry.

Ty Hurd · 1 year ago

Good post. I'm in the process of starting a new media co and we've been solely focused on the tech side. And our business plan outlines this, and then the migration to marketing and sales in a few months.

I like your blog, I'll be back!

Erik Johnels · 1 year ago

As a Business Consultant I see these discrepancies in every startup.

The key to "doing it right" is to take a holistic approach from the beginning. Slow down your startup plans until you have actually considered every aspect of the business.

One "trick" I use with these companies is to grab an organizational chard from a major corporation, and show them what really happens in a company. A chart like that will show every aspect needed to build a strong company and not run away from yourself where you end up with either a product with no sales, or sales with no product.

Good post, Looking forward to reading more.

Newmark · 1 year ago

Good Post. I remember in the early days when it was late nights and lots of pizza. Now it seams it is endless meetings and sales goals. This seems to be a common evolution of software companies. At least the rewards are great doing what you love.

Great Blog.

Mark · 1 year ago

I've always handled the sales side of our company, communication is my thing, its what I know. That is why I partnered with a guy who knows the tech side and can't communicate a lick (okay, that may overstate things). We compliment each other perfectly.

Ben Yoskovitz · 1 year ago

Thank you to everyone for commenting so far!

@Banner Boy: Sure, the reverse of what I said can happen as well, but I did state specifically that I was talking about "software startups", which by definition (at least in my mind) means a company that starts with technology first. The reverse is possible of course - where the sales/marketing is strong, and product/tech is non-existence or weaker, but I'd say most startups in this day and age (in the tech sector) fall into the category I've defined.

Ben Yoskovitz · 1 year ago

@Tony: I don't think I was saying that you should focus on one aspect of your business more than another. If anything, I'm espousing that tech-centric companies - companies founded by guys that are neck-deep in code - need to recognize the importance of sales & marketing in order to succeed.

And I'll stick by my statement, because a company focused solely on technology generally won't build up a critical mass of customers in order to succeed.

We certainly can look outside our industry and should, but I'm also targeting a specific audience with my content. I would never suggest that what I write is appropriate for a manufacturing startup, for example. And the fact is, many startups in "our world" are tech-heavy. It's all about "building a better mousetrap" instead of figuring out whether people really want a better mousetrap, and then how to sell and market it.

Andrew Biss · 1 year ago

Good post.

A special case I have seen is technically strong ISVs with little or no idea of sales and marketing. What made them special was a strong maintenance stream from their early adopters. The maintenance revenue allowed them to keep going without sales and marketing. This went on for decades, until, of course reality finally caught up with them. It came as a surprise to the managers of those companies, but not to anyone else…

David · 1 year ago

Great post our business plan outlines this, and then the migration to marketing and sales in 3-6 months.

Steve · 1 year ago

As a software company ourselves we have started out in the exact oposite way! Those of us who started the company originate from Sales, Marketing and Accounting backgrounds. We sub-contract in the best consultant for each specific job as it's won. That being said we are a reseller as opposed to developing the software ourselves, and we all have product knowledge from previous companies, I have seen a few other businesses starting up this way recently.

Mike at Pacebutler Recycling · 1 year ago

As a marketer, I meet tech people everyday with outstanding applications painstakingly developed and you're right in pointing out that the initial stage in a software company's evolution is heavily biased towards the technical side. Interestingly, most of these guys already have an idea of who their target market is and some road map on what the tilting point is in terms of customer acquisition before the company makes money. Their need is to spread the word and make those connections, and the sooner the company complements the tech side with a marketing initiative, the faster its evolution will be.

I think you've hit the nail when you said "And, those strategies will impact product development. Just think about the viral components or features you might be able to build into your software application that could help with gaining traction…" When the company starts marketing and engaging its market, product development tends to become "market-driven" instead of the opposite approach of molding the market around your product. Thanks for this great article.

Ben Yoskovitz · 1 year ago

@Andrew Biss: That's a good example of just how important sales & marketing are to software companies. Small ISVs can live for years off maintenance revenues or yearly renewals (for SaaS companies)...but if you're trying to really grow and scale a business you'll have to knock on customers' doors and move faster.

Thanks for all the comments!

Jeff SKI Kinsey · 1 year ago

Loved it. Reminds me of, well, me! Zig Ziglar has been preaching as long as I have known him (30+ years) that EVERYONE is in sales. --ski

Cliff Thornton · 1 year ago

The key is to be able to support your existing customers as you grow and keep an open line of communication with them as your develop new versions of your product. You have to be able to sell to your existing base and to greenfield, but you're not going to be able to sell to your existing base if they are not happy--- this happened to Microsoft with their base of server customers-- of course there's a lot of reasons for this! You've also got to be able to to keep a hold of your human intellectual capital because as a start-up to lose this is a huge cost! Just imagine if a captain had to switch-up his senior officers in the middle of an active deployment-- that would cause a great deal of confusion, inefficiencies and could lead to major hazards and failures. You don't want to put your start-up in that situation-- so you've got to keep your start-up a place people want to stay. Finally, you need a strong infrastructure-- financially, CRM, contract records, HR, etc......a building is only as good as its foundation. Again this is why you need to keep your leadership in place. Focus, focus, and focus--- you've got to keep focused on your core competencies and target markets. Also, know your key competitors in these spaces like the back of your hand. The way you keep a step of your competitors is to be the BEST at providing what your customer needs and providing with services they don't know they need, but desperately need it. Being in business today is like being a jet fighter pilot.....a bogey can come out of the sky at any time and knock you out unsuspectingly.....this is why you and your team have to remain vigilant!

CFI Guy · 1 year ago

From my brief period spent in sales, I'd even go as far to say that if you can figure out a way to get some sales guys on board from the beginning (by offering high commission and no base salary or something) you can really benefit if you find the right sales people. It's amazing what a strong sales force can do for you.

Jun Jie · 1 year ago

Being in the sales and marketing department just means, You can talk to other people. You actually understand what they are saying to You and You know how to make other people what You want them to do.

I really wonder why so few technical guys know about this. They don't even try to educate themselves in that direction. Courses are available everywhere and You can buy a book about this in almost any bookstore. At least here in Hongkong, but that should be the same in any place.