| Startups love "Talking about the Baby"; they are just | | | | however, this strategy is not scalable. A startup with |
| like new parents. The founding team's passion and | | | | one complete simple solution is light years ahead the |
| engineer's enthusiasm heavily influence the company's | | | | average startup that takes the "Speeds and Feeds" |
| early messaging. Up on launch, the company should | | | | or shotgun solutions (we do everything) approach. |
| be proud and celebrate. Realistically, startups have | | | | The leap from "Speeds and Feeds" to "Simple |
| often been totally immersed twelve to fourteen | | | | Solutions" is one which a startup can make with only |
| hours a day six to seven day a week for three to | | | | an incremental investment. The problem is which |
| four years in product development. Each and every | | | | solution does a startup bet on. (There is an implicit |
| corner case, feature, and capability has been | | | | assumption that the product/service was developed |
| painstakingly debated, argued and rehashed | | | | in order to solve a customer problem; however, that |
| numerous times. The product/software knowledge | | | | is not always a good assumption in my Silicon Valley |
| depth within the team is vast. It is human nature to | | | | experiences). With a good, respected marketer on |
| be enthusiastic about years of work and want to tell | | | | staff, the startup should be able to narrow the list to |
| the world all about it. Unfortunately, the rest of the | | | | three highly probable solutions ranked by priority. |
| world does not care about your product details; most | | | | Startups that spend a little time locking this down |
| companies have their own problems to which they | | | | early can mean the difference between success and |
| need a solution. | | | | failure. As described in detail by Steven Blank in "The |
| Like a baby swaddled in a security blanket, early | | | | Four Steps to the Epiphany," customer development |
| marketing and sales presentations are laden with | | | | (not sales) meetings should guide development, and |
| "Speeds and Feeds" (detailed product technical | | | | customer validation meetings then confirm and |
| specifications) in an effort to answer any possible | | | | solidifies the solution choice. If not, conduct more |
| question and/or objection that could arise. Startups | | | | customer development and customer validation |
| are just "Talking about the Baby" with the "Speeds | | | | meetings to find a solution. |
| and Feeds" sales approach. Unfortunately, this | | | | Most startups choose to chase a large market, which |
| approach often leads to the newly minted sales team | | | | is logical to get venture capital and grow the |
| returning home battered, frantic and disillusioned. | | | | company. Everyone pitches a billion plus total |
| Then founders complain how the marketing and sales | | | | addressable market (TAM). At launch, most have a |
| teams, as well as potential customers, "just don't get | | | | fledging product that is not ready to head directly |
| it". The founders and engineering team loves their | | | | into the big game. So, a startup needs to find a |
| baby; why doesn't everyone else? Welcome to the | | | | market where their product is "good enough", as is, |
| market. | | | | and then grow into other markets. With typical |
| The "Speeds and Feeds" technical details are needed. | | | | revenue targets in the millions of dollars, most highly |
| But rattling off technical accomplishments to a | | | | targeted markets can make a company's first and |
| potential C-Level customer is like a new parent going | | | | second year. Realistically, most billion dollar TAM |
| prattling on about their first newborn baby (Boring!). | | | | markets are a compilation of smaller segmented |
| The sales cycle is not about you; it is about the | | | | markets; all experienced venture capitalists know this. |
| customer. And customers want to know how you | | | | In his book "Crossing the Chasm," Geoffrey Moore's |
| can solve their problem. Startups must get over the | | | | bowling pin analogy on market segmentation strategy |
| "baby" and transition from product centric "Speeds | | | | is truly the correct approach. Of even more strategic |
| and Feeds" to solutions sales approach. Solutions | | | | significance, this approach is equally important in |
| have a faster revenue ramp because a solution | | | | moving from selling to earlier adopters to the early |
| solves a customer problem. Solve a problem and | | | | majority and beyond. |
| customers will open their wallet. But, how do startups | | | | Getting into market is the biggest challenge. Startups |
| mature and transition? The transition is always a | | | | must to do the homework to target a solution to |
| painful challenge. If we construct a high level | | | | establish a beachhead. Once a startup has figured out |
| maturation hierarchy, we see the following: | | | | how and where to sell, expanding into parallel |
| The hierarchy breaks the maturation cycle into | | | | markets is much easier because you now have a |
| "Speeds and Feeds", Simple Solutions, Advanced | | | | proven sales process and a history of success. All |
| Solutions, and Complex Solutions. The Advanced and | | | | lessons learned and experience developed in Simple |
| Complex Solutions are included to outline the | | | | Solution selling (along with the related marketing, |
| maturation cycle. Companies in these two categories | | | | professional services and other activities) will advance |
| are the Global and Fortune 2000 enterprises. | | | | the company as rapidly as possible from embryonic |
| Challenges within those categories exceed the scope | | | | startup to a successful growing company. |
| of this discussion. The "Speeds and Feeds" and | | | | "Talking about the Baby" is satisfying. But, it does not |
| Simple Solutions challenges are the interesting topics | | | | pay the bills. Good startups plan with the customer |
| for startups. | | | | needs in mind. Great startups plan to solve customer |
| All companies must have the "Speeds and Feeds" as | | | | problems and get paid. Switching the mindset and |
| table stakes; but customers pay companies to solve | | | | focus from the startup centric "Speeds and Feeds" |
| problems. A few early adopters will buy the product | | | | to a customer centric Simple Solutions approach is |
| on the "Speeds and Feeds" pitch and "cool | | | | challenging, but must be done to successfully ramp |
| technology factor", if they have extra budget; | | | | sales and grow the company. |