It is far from easy to start tech 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. Many tech entrepreneurs use diverse strategies to attract customers to their tech businesses.Included among these are include radio, newspapers, television, and among others.
It is hard to understand, but tech companies take longer than expected to start. 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. It is mandatory for tech entrepreneurs to be conversant with 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. Tech companies always have different shapes of the curve from the other companies. To enter the market, tech companies need to go slow.This is a strategy that is practiced by many in diverse industries. The confines under which the Sales Learning Curve are in the go-slow fast before entering the market.
When sales reps meet face to face with customers and close initial sales, there is an organizational learning that takes place. This happens to be a very crucial requirement for the success of the organization. There will be a complete hiring of VPs as long as there is a completion of the beta product. This strategy fails most of the time. 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. 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. The company may not immediately gain market traction as assumed by the two since it is only ready for starting the SLC process. The time that this process will take is not consistent and easily determined. Some tech companies may have this process taking longer than others.
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.These are the ones to be conduits between initial customers and the tech team compensated on the organizational learnings.