5 Things Young Software Companies Typically Don’t Know

Posted on August 6th, 2017 by Chip Davis

IMG_0007We hear a lot of pitches from young companies with well developed software capable of solving interesting (high dollar) business problems. There is rarely a solution whose value proposition is so self evident and powerful that it can circumvent typical buying patterns. The danger of most elegant software (at initial commercial release) is its hypnotic distraction from what is required to cause a purchase. In this context, we have listed some opinions and questions for young companies to ponder. In no particular order:

  • If you think you just had a “great meeting” with a prospect, you most likely did not. How do you determine the truth?
  • What it is about the particular business problem of interest that is dragging out your sales cycle and how do you reduce drag?
  • When is a trial the right thing to do for the company?
  • Is your sales force doing too much lead generation and why is this bad?
  • What are the first signs that you should not allow a prospect to become your customer?

Consider these points in earnest and founding shareholders of promising software companies will need less money to evolve and own more stock at exit. Make sure your money source has some answers.

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