It is scarcely easy to start a company.For a tech business to make profits and survive in the competitive world, so much is involved. You must ensure quality in services and products so as to attract and maintain the right kind of clientele. There very many marketing strategies that have been used over the years by tech entrepreneurs to attract customers to their investment.Included among these are include radio, newspapers, television, and among others.
It is known by many that it takes longer than expected to start hi-tech companies.What is even more confounding, it also costs more. Panning out for venture capital investments is scarcely achieved by 80% of all venture capital investments.For tech companies to make in entrepreneurship, they must understand the Sales Learning Curve.
The role of the Sales Learning Curve it to effectively track margin contributions per Sales Yield gauged against the all customer transactions.Different tech companies exhibit peculiar shape of the curve. There is an imminent need for tech companies to go slow before they enter the market. In different industries, this is not a new term.This is the basic principle of the Sales Learning Curve .
An organizational learning takes place when sales reps meet face to face with customers and close initial sales. The success of the organization heavily relies in this for its success since it is a very crucial tenet for the same.Going to the market as a requires hiring a VP of sales after completion of the beta product after which hiring many reps to “drive revenue and get to breakeven” is done. Sadly though, this is a strategy that is characterized by massive failure. This failure is guaranteed by lack of investing time in understanding the SLC shape for its product in the market.
The tech startup entrepreneurship industry has a consistent pattern of highly inflated B round valuations. A worthwhile note is 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.These two ignorantly assume that the company will gain market traction forthwith when the truth is that the company is ready to commence the SLC learning process. The time that this process will take is not consistent and easily determined.It may sometimes take longer for some entrepreneurs.
As you move from beta release to first release, few technically savvy sales reps need to be hired. This will be conduits between initial customers and the tech team compensated on the organizational learnings.