It is far from easy to start tech company. Survival of tech companies in business involves and demands much in this highly competitive world of business. You must ensure quality in services and products so as to attract and maintain the right kind of clientele. Many tech entrepreneurs use diverse strategies to attract customers to their tech businesses. Radio, newspapers, television, and among others are some of the strategies used by such tech entrepreneurs.
Starting tech companies takes longer than anticipated. It also costs more to start tech companies than expected. Panning out for venture capital investments is scarcely achieved by 80% of all venture capital investments. The Sales Learning Curve is required by tech entrepreneurs to make it in the industry.
The role of the Sales Learning Curve it to effectively track margin contributions per Sales Yield gauged against the all customer transactions. The curve shape is different for different tech companies. There is an imminent need for tech companies to go slow before they enter the market. Many people are aware of this strategy in their different industries. The Sales Learning Curve operates under this confine.
An organizational learning takes place when sales reps meet face to face with customers and close initial sales. This happens to be a very crucial requirement for the success of the organization. After this, there will be the go to the market strategy where VPs of sales are hired.However, this is a strategy that will definitely fail. Lack of investing enough time in understanding the SLC shape for its product in the market always ensures this.
Everyone will see a consistent pattern of highly inflated B round valuations in the tech startup entrepreneurship industry. There is a begging realization that the down rounds for C percentage and later rounds is greater than B rounds. Entrepreneurs and VC’s lightly consider the cost and time needed for moving up the SLC after completing the Beta product as evidenced by this fact. The company may not immediately gain market traction as assumed by the two since it is only ready for starting the SLC process. This is a hard to process to determine the time to take.It may sometimes take longer for some entrepreneurs.
Important to note is the fact that as you move from beta release to first release, few technically savvy sales reps need to be hired. They will effectively act as conduits between initial customers and the tech team compensated on the organizational learnings.