Selling a Winner: Product is not Enough for Success

Editor’s note: “The Angel Connection” is a regular feature in WRAL Local Tech Wire. LTW asked consultant Bill Warner to share advice for entrepreneurs seeking angel investors and/or venture capital investment. He is chairman of the Triangle Accredited Capital Forum, an angel investor network with over 100 members throughout the Southeast. The Angel Connection is published weekly.

RESEARCH TRIANGLE PARK - Hey, we have a product or service and know our value. Now, all we have to do is hire some good sales people and we are off and running. Right?

Not so fast. Investors – from angels to venture capitalists - will want to see that you have a well thought out approach to sales and that you know all about the right sales channels to use.

Getting Ready to Sell the Product or Service

Whether you have a direct sales force or your selling is done through other sales channels, you have to make sure that the buyer is handled in the best way possible to insure a sale. The key success factors are:

• A solid value proposition

• Seasoned sales people who know how to sell

• A well trained sales team who know about the product or service

• Well thought out compensation and commission plans

• Appropriate incentives

• Effective supportive material for the sales teams

• Well linked and responsive lead generation programs

• Responsive sales support for pre-sales engagements, proposals, contracts, questions and implementation services

• A strong follow-up process supporting the sales effort as well as cultivating repeat business

Provide Value in Sales

All of these success factors are guided by one simple principle. Provide the buyer:
With a truly memorable experience
In offering a valuable product that solves a significant problem
Knowing they are working with the most responsive and caring company they have every worked with

Be Prepared

The preparation for the sales work has to be achieved before the product or service goes to market and should be thoroughly checked out. Get the best people who are really well founded in the principles of selling and who have relevant experience in the market that your are pursuing.

Some of the most critical hiring decisions will be in selecting the right sales team. Investors will scrutinize who you have selected for the sales team. They all know that you can have the best product or service idea, but if you cannot sell it, it is worthless as an investment. They may even want to provide contacts and referrals to successful sales people. Second only to your spouse, this may be the most important partnership you establish.

Keep Sales in Perspective

Selling is something that starts from the very inception of the product or service idea and never stops thereafter. Everybody in the company is involved is selling in one way or another. Selling involves approaching the whole distribution channel as well as other stakeholders in the market landscape. A well oiled sales operation is essential to the success of any business and investors want to see that you have thought of everything that is necessary to be able to close sales.

About the author: Bill Warner is the Managing Partner of Paladin and Associates, a business consulting firm in the Research Triangle Park area of central North Carolina, and is the Chairman of the Triangle Accredited Capital Forum, an angel investor network with over one hundred members throughout the southeast.