BEFI 9 October Sales and Traction: Roger Yee

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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Sales & Traction

The Founder Institute

Roger YeeBerlin – 10/09/2014

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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Background

• Three start-ups – full lifecycle

• Enterprise Services & Products

• Unique perspective – Idea to funding to execution

 – Hyper-growth businesses

 – Initial Public Offerings

 – ergers & !c"uisitions

 – !ngel Investor & #i$ited Partner 

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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It is a race

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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Revenue

• #ifeblood of your co$pany

This is your FUEL

• Sales deliver revenue

It will be chaotic 

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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What’s Your Business Model

• Product – #icense %user vs platfor$ vs enterprise

 – 'ree-$iu$(Try & )uy

 – Subscription• Services

 – *onsulting

 – I$ple$entation

 – +etainer 

All product companies have anaspect of services free or paid

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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!roduct vs "ervices

Revenue

Time

Services

Products

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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#ocus on $alue %reation

Two simple business models:

&el' a custo(er SAVE (one)

&el' a custo(er MAKE (one)!onsumers

Enterprises

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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*ero to +ne

• Focus on the first dollar 

• any steps to the first ,../ and ,

• 0o as fast as possible %early on

• "aries upon# – product or services

 – stage of offering %alpha1 beta1 launch

 – si$e of mar%et

Convincing customers is critical – think sales! 

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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Bootstra''ing

• Prove the offering(technology

• 0et the first custo$er 

• 2e(re-fine the $odel

• 0et the first customer 

Start here &efore e'ternal funding

 (ou might not need it

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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,uick Math -esson

Sales price

  - !ost

) Profit

You can control your costs

You set your sales price

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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Making "ales

• *now the race trac% – ar/ets

 – *usto$ers %3ho is your +,EA custo$er4

• *now your competitors – Offerings

 – *o$petitive differentiation

• *now your customers

 – 5nderstand and e'ceed their needs

 – !re you solving a HA,+ proble$4

 – *onstant 'eedbac/ loop

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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Real.orld "ervices

• Services. /0 !onsulting 1 Services integrator 

• ar/et6 e*o$$erce sites and syste$s %dot7co$

• *usto$ers6 'ortune ...

• Product Sales – 8one - reseller 

• I$ple$entation Services

 – Prototypes %de$os – !dvisory(!rchitecture %consulting

 – Pro9ects

 – Tailored solutions

8/11/2019 BEFI 9 October Sales and Traction: Roger Yee

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ea .or erv ces .Realit)

• !hallenge. :ard to differentiate – lots of

co$petitors -- ;e< everything

• ar%et Position. End-to-end provider1 one-stop

shop1 build capability in = /ey do$ains

,eality. 23 acquisitions4

565 mar%et focus4

/P7 1 acquired for 86925 &y product company

,evenue ,esult

3:; organicgrowth

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Real.orld !roduct

• Product. High security operating system

• ar/et6 Infor$ation sharing

• *usto$ers6 0overn$ent !gencies

• Product Sales – 2irect

 – *hannel(Partners

• Engineering Services – Prototypes %de$os

 –  !dvisory(!rchitecture %consulting

 – *usto$ solutions %pro9ects

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Real.orld !roduct – Realit)

• !hallenge6 Industry standard OS

• ar%et Position. 8iche player for secure OS1

build pac/aged info-sharing applications1 expand

into ho$eland & healthcare $ar/ets

,eality. Product powers < of 26

=ov>t approved solutions4

patented /P4 2::; =ov>t mar%et

,evenue ,esult

2.6 ratio

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Real World #orti) !ortolio

>eb-based event planning and co$$unity building platfor$

/ndividual event planners ?? Event "enues

Service provider connection via phone to consu$ers2@ cities in 2@ months ?? +riven &y +emographics

SS text $obile sharing1 search and storage technology

Enterprise platform ?? 7E !onsumer o&ile App

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Investor !ers'ectives

• )usiness $odel simplicity?*o$plex $odels @ lots of varia&les

• *usto$er  acquisition is i$portant

?Early traction drives $o$entu$

• *ost is the only variable you can control

?anage your costs

• 5est champion is your first custo$er 

?8ot necessarily your &est customer 

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