The Entrepreneurial Selling
Process
Bill Collins
4/13/2015
Bill Collins
EFP Caltech
1
Selling Process Phases
Phase
 Set
I – “Education Phase”
your success pattern
“Invent” your customer
 Establish “Lead” customers

Phase
II – Volume Sales
 Repeat
your success pattern
“Mass produce” your customer
 Establish predictable sales funnel

4/13/2015
Bill Collins
EFP Caltech
2
Selling Process Phases
Phase
 Set
I – “Education Phase”
your success pattern
“Invent” your customer
 Establish “Lead” customers

Phase
II – Volume Sales
 Repeat
your success pattern
“Mass produce” your customer
 Establish predictable sales funnel

4/13/2015
Bill Collins
EFP Caltech
3
Quiz: Why do Fish School?
4/13/2015
Bill Collins
EFP Caltech
4
Adoption Challenge
You are faced with a host of valid
initial customers – how do you
proceed?
Potential
Customers
Sprint
CN Rail
GeoDigital
You
Verizon
Exxon
PGE
Union Pacific
Duke Energy
Texaco
AT&T
BNSF
Xcel Energy
Chevron
4/13/2015
Bill Collins
EFP Caltech
5
Phase I Overview
In Phase I, you pick out a few
reference-able customers of the
same type to win
Potential
Customers
•Education intensive – both directions
•Make “alterations” to fit
•Allows “characterization” of sale
You
Education
4/13/2015
Bill Collins
EFP Caltech
6
Phase I Overview
In Phase I, you pick out a few
reference-able customers of the
same type to win
Potential
Customers
•Education intensive – both directions
•Make “alterations” to fit
•Allows “characterization” of sale
GeoDigital
Education
Xcel Energy
PGE
Duke Energy
4/13/2015
Bill Collins
EFP Caltech
7
Portfolio Examples
Company Solution
Mkt Options
Choice/Lead Cust
GeoDigital
3D Laser
Mapping
Utility, pipeline,
telecom, roads
Utility/PGE, Xcel, Duke
Energy, SoCo
iRise
Int’net SW
Finance, Health,
Retail, Gov’t
Finance/Schwab, VISA,
First Am Title, Wells
Case Stack Outs Logist Consumer Pkg,
Food, Furniture,
Electronics
4/13/2015
Bill Collins
EFP Caltech
Consumer pkg
goods/Lea & Perrins,
Hansens, Celestial
8
Phase II Overview
In Phase II, you the leverage lead
customers to help similar ones
recognize the value, rapidly adopt
•Establish repeatable process
•Make revenue predictable
WAPA
Recognition
BPA
Arizona PS
PSE
Education
4/13/2015
Pacificorp
Bill Collins
EFP Caltech
9
Momentum
Additional types then require less
education and have faster recognition
based on initial success
Recognition
Education
4/13/2015
AT&T
CNBillRail
Collins
EFP Caltech
10
Alternate Approach
Addressing multiple types at the beginning
•May feel faster, but is actually slower
•Education spread too thin
•Longer for specific types to recognize
•Recognition still tends to be by one type at a time
Recognition
Education….
Education….
4/13/2015
Bill Collins
EFP Caltech
11
Process Benefits

Phase I enables market recognition




Enable market analysts to position you
Enable target company interest in you
Enable funding community to put a value on you
Phase II enables predictability

Financial risk reduced



Solidify your value to funding community, acquirers

4/13/2015
Return on assets can be projected
Operational investments scale an established model
Equity, debt, purchase
Bill Collins
EFP Caltech
12
When Should I Start Selling
My Solution and Who Should
Sell It?
The Short Answers….. Now and You!
4/13/2015
Bill Collins
EFP Caltech
13
Lead Customer Pre-Requisites
1.
2.
3.
4.
Reference-ability to rest of target market
Location allowing intensive interaction
Looking for competitive advantage
Have both pain that can’t be solved by
others and a specific compelling project or
event necessitating solution
5. Sponsorship from customer manager(s) that
control priorities and budgets
6. Willingness to engage a start-up company
(this is by definition a small percentage)
4/13/2015
Bill Collins
EFP Caltech
14
Ways To Reach Initial Customer
Most success comes through relationships
In order of effectiveness……
1.
2.
3.
4.
5.
6.
7.
Customer helps found company/is early investor
Founder/CEO/CXO has relationship already
Engage established partner(s) with privileged access
Engage established sales person with privileged
access
Leverage referral from close mutual associate
Leverage referral from distant mutual associate
Cold call
4/13/2015
Bill Collins
EFP Caltech
15
When is Phase I Complete?
 When
you have a credible answer to:
“What have you done successfully for
someone just like me?”
 Complete
~ 5 sales.
 Make ~ 5 installations, demonstrate value.
 Know why they bought it.
 Get at least 2 to be references for value.
 Be ready to deliver in production form.
4/13/2015
Bill Collins
EFP Caltech
16
Phase II

Establish, characterize sales funnel


Use funnel to establish revenue plan



Assign quota by resource building blocks
Assume productivity & price changes, lead-times
Measure and drive key metrics


Stages of sale, Cycle-time, Attrition, Resources
required, Selling costs
Tailored to your business
Get a professional to run this

Different from a Phase I activity
4/13/2015
Bill Collins
EFP Caltech
17
Funnel Definitions
Item
Definition
Suspect
All possible customers who could use solution
Target/Prospect
Actively addressing to find potential pain, project & fit
Lead
Established, identified potential project & fit, working
to identify opportunity: intent to buy, budget, decision
maker, timing, competition
Qualified Lead
Opportunity confirmed, working to get invitation to
present solution to decision maker
Present
Presentation made, working to get an invitation to
formally quote/propose
Propose
Formal quote/proposal submitted, working to close
Close
You’ve got the business!
4/13/2015
Bill Collins
EFP Caltech
18
Example Funnel/Pipeline
4 weeks
15
Present
Qualified Lead
25
2 weeks
4 weeks
4/13/2015
Bill Collins
EFP Caltech
2 weeks
10
Propose
50
Lead
Target/Prospect
Suspects
100
4
Close
3 weeks
13 weeks
total
19
Example Metrics
 Choose
the ones most important to your
situation, such as:
 Number
of opportunities in each stage
 Hot list of accounts at proposal stage
 Close ratio
 Time to qualify leads
 Performance to quota
 Actual ASP of deals closed
4/13/2015
Bill Collins
EFP Caltech
20
Channels
“Channels are NOT
customers, they help
you reach your
customer”
4/13/2015
Bill Collins
EFP Caltech
21
Why Are There Channels?
“Channels enable quality
sales time with the
customer”
4/13/2015
Bill Collins
EFP Caltech
22
Channel Comparison
CHANNEL
Direct Sales:
Push
VAR’s: Push
Agents/reps:
Push
Distributors /
brokers:Push
Telesales:
Push
Consumer
retail / dealer:
Pull
TV / mail: Pull
Internet: Pull
4/13/2015
REACH
REQUIRED
L
L
M
M
M
H
H
H
CAN SUPPORT
FIXED COST
H
L
L
L
M
L
H
L
Bill Collins
EDUCATION
NEEDED
BEST FIT
H
Big ticket items, heavy support,
concentrated base
H
M
M
L
L
Mid-sized sales, heavy support,
concentrated base
L
L
Small-sized sales, no support,
dispersed base
EFP Caltech
Mid-sized sales, heavy support,
mid-dispersed base
Mid/small sales, mid-support,
dispersed base
Small-sized sales, light support,
dispersed base
Small-sized sales, light support,
dispersed base
Small-sized sales, light/no
support, dispersed base, for
customers who target you
23
Using Multiple Channels
$ Per Customer
 You will typically end up using multiple channels
 “One size” usually does not fit all
Gp A
Channel A
Group B
Ch B
Customer Group C
4/13/2015
Bill Collins
EFP Caltech
Ch C
24
Sales Plan “Building Blocks”
Quotas
Channel 1 Units
Q1
Q2
Q3
Q4
Y1
Y2
2
2
4
4
12
20
Price
$200K $200K
$300K
$300K
$275K
$300K
Ch. 1 Revenue
$400K $400K
$1.2M
$1.2M
$2.9M
$6M
6
6
20
40
$150K $150K
$200K
$200K
$175K
$200K
$600K $600K
$1.2M
$1.2M
$3.6M
$8M
$6M
$14M
Ch. 2 Units
Price
Ch. 2 Revenue
Total $ Revenue
4/13/2015
4
$1M
4
$1M
Bill Collins
$2.4M
$2.4M
EFP Caltech
25
Attracting & Motivating Sales Forces
 Great
salespeople / channel companies
are looking for two things:
A
great solution to sale
 High variable compensation
 Sales
people / channel companies are
highly motivated by contests
4/13/2015
Bill Collins
EFP Caltech
26
SalesmanAct.jpg
Top Sales People
4/13/2015
Bill Collins
EFP Caltech
27
Hiring Top Sales People

Top Sales people have common traits:

Have professional & personal relationships with
your specific target customers


Consistent high achievers to quota



Each market has a “club” – they are in the club
Consistently number one or close to it
Consistently highly paid
Hire these people - pay a premium if required


Particularly for your early sales team
They are well worth the money!!
4/13/2015
Bill Collins
EFP Caltech
28
Summary

The two-phase selling process drives a
successful business


Set the pattern, repeat the pattern
It all starts by choosing similar customers




The key factors are education & recognition
Phase I enables recognition, Phase II predictability
Phase II is for “mass producing” customers
Top Sales people:



Want superior solution, high variable comp
Know your customers, have the track record
Pay them the money – they’re worth it!
4/13/2015
Bill Collins
EFP Caltech
29
Q&A
4/13/2015
30
Exercise
Elevator Pitch
4/13/2015
31