The Tax Man Cometh
Re-platforming your product is not an easily survived endeavor. You best customers might tolerate it one time.... as you did it for your customers, but they won't give you much
leash, despite your benevolence. In the same way re-platforming your code base may become a darwinistic requirement, so, too, (likely) is re-platforming your sales process; however, your company can likely endure this only one time.
Most founders are not unhappy to live with the technical debt of a relationship-based selling process that got their company off the ground; however, clearing this technical debt normally comes at the time when the founder is trying to raise money (either by choice or requirement). The founder has observed the need to change and has to pay off his debts submitting to a level of dilution that would not be forthcoming absent the debt accrual. Looking at the chart below, let's say your close rate on forecasted bookings for the quarter averages 30%. Let's also say that to have a good business you really need to get to 76%. The absence of a sales process that works the way your prospects wants it to is costing you about $1 million per year (in cash) for a team of four bag carriers. The effect on your value is a multiple of that. Eye opening, yes?
Our point to you is this: you can code up your sales process right now in a way that limits the need to change (again) in the future. While most sales process methodologies are task based and assume that the deal self-closes after all the tasks have been completed, we believe in a value-based process that stresses an ROI driven by our unique capabilities.
Switching to this value-first (versus feature- or price-first) approach is particularly effective in the enterprise space, which is where most smaller SaaS companies are weak. In order to get significant traction at exit, the quality of the logos matters and this value-based approach to sales delivers consistently upmarket logos that buyers covet.
The key to any sales process, though, is the vigilance to adhere to it consistently; trying to take shortcuts in the process will likely short circuit the deal and waste whatever effort has taken place. The MOIC Sales Engine, with its 21 step sales process, is a great tool for companies that want to win upmarket.
For more info regarding re-platforming your sales process to win upmarket, please either ask Virtual Dave or email dave@moicpartners.com.
Virtual Dave is an AI-based virtual sales support tool trained on 40 years of enterprise software sales experience, available 24/7 to enhance sales process consistency.
