Sales Advocate Newsletter

Building a Predictable, Repeatable Revenue Model

April 2001

The difference between a great idea and a viable business model is no small matter. For today's start-ups, the distinction is far greater than it was just a couple of years ago, when venture capitalists seemed willing to back any novel concept onto which you could add "dot-com." So what separates potential from prosperity these days? One word: focus.

Investors now require that you demonstrate the ability to find customers and generate revenues. The challenge is to accomplish these mandates in a predictable, repeatable and consistent fashion. Maintaining sales growth has always been crucial to prosperity in high tech, but never more so than since our market correction began last year. Here are a few tips on the sales and marketing side to help you execute on your goals in these more discriminating times.

Start by defining your target market to focus your efforts. If you're selling to a vertical, make sure you've identified a narrow-enough slice. For instance, don't call on every institution in the health care field if the ripest market for your product is hospitals. Instead, market only to hospitals. What are the needs of companies in that space? What systems and solutions have failed to meet those needs in the past? Gain an in-depth understanding for the competition in those segments. Where do you have the advantage? By defining your target segments with laser accuracy, you can accomplish the following:

1. Create a value proposition that will resonate with potential customers. You'll quickly see the viability of your value proposition for your target markets and can make adjustments where necessary.
2. Make and achieve realistic financial projections. It's much easier to assess a specific target market than to calculate potential sales to every conceivable customer. Build your forecasts from the ground up and they will be much more accurate.
3. Execute focused lead generation campaigns. Marketing campaigns with well-articulated messages aimed at well-defined markets will produce higher quality leads than those casting a wider net.
4. Build confidence and expertise in your sales development team and direct sales force. Nothing prepares a sales team for success better than a carefully laid plan to enter a well-defined market segment. Make your sales staff experts on the markets you've chosen. Their knowledge of the needs and trends within that segment will help to win deals.
5. Keep your pipeline full. By giving market direction to your sales development teams, you enable them to consistently deliver highly qualified leads to your field sales representatives. As a result, your field sales reps don't waste time on unpromising prospects.

Once you've demonstrated the viability of your solution in your initial market segments, then you can start broadening your horizon to include other markets. But start by focusing your efforts.

You can reach Phone Works at 510.749.9073.