Has Some Customers
Gaining initial customers validates the business model and shifts the focus to customer satisfaction and retention. This stage introduces new challenges related to scaling operations and meeting the growing demands of customers.
Use the image on the right to navigate to articles for the selected stage.
The commitments from customers are exciting, but it starts an entirely new set of challenges. There are nine general levels of customer satisfaction that range from amazed to dismissive. Ask for candid feedback if investors say no to you; do not argue or defend. Follow the Boy Scout Motto: “Be Prepared” for the next investor meeting the next morning. Revenue develops in stages; understand where you are and what you want. It is not what you say that counts; it is what paying customers say to others. After initial orders are received, scaling may require significant changes. Positive gross margin is only the first element in determining profitable sales. Identifying prospects and turning them into customers on a large scale can be quite difficult. Creeping feature requests can easily add undue complexity and lengthen the time to market. There are a dozen major activities that can impede the flow of sales that are often missed. Completing development is only one part of having an offering that can be sold and supported. Sales reps need to be scrappy for new companies or when entering new markets. Focus on serving one segment instead of the total imaginable market. There are significant upsides and downsides for the CEO to act as a sales rep; timing is everything. Make sure the customer knows they have a problem before you offer a solution. Focus new product field trials with respected customers who will allow public references. Objections from prospects can help to optimize products. Customers supply the wonder drug: Revenue KDMs do not make decisions without underlying support. Overcoming the resistance to change is difficult. Focus on Users, not just Buyers, when prospecting. Take time to identify the characteristics of an ideal customer for future comparisons. Conserve resources by unqualifying sales opportunities early. Small customers may not be equipped to support your offering. Don’t mistake interested individuals for customers. Assuming some of the customer’s risk can help close a sale. Sales depend upon a clear understanding of the availability of a solution to a problem. Gaining a prospect’s attention is the most challenging competitor you will face.