business for engineers part 1: customers and sales
DESCRIPTION
A quick introduction to basic business concepts aimed at engineers and all who wish a simple and quick explanation. Part 1 in series covering the customer need stages and sales cycles.TRANSCRIPT
ABOUT THE WORKSHOPS
ShortNo-nonsense
Customers
Value propositionProduct design
MVPCompany values
A typical R&D engineer question
SALES DEPARTMENT
Y U NO SELL MORE NEW PRODUCTS?
But it’s not really that simple..
CUSTOMER NEED STAGES
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
SO.. WHAT DOES THAT MEAN?
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
SALES CYCLE LENGTHShort
Long
Sales
cyc
le
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
SERVICES VS PRODUCTSShort
Long
Sales
cyc
le
Professional services (CRM, infrastructure..)Established products (PCs, IP telephony..)
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
YOUR SOLUTIONSShort
Long
Sales
cyc
le
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
Where on the spectrum
do they fall?
(PRE)SALES ACTIVITIES
Educate the market*
Beat competition, send invoice
Present solution benefits
Marketing
Start selling
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
* note: does not work
NOT EVERYONE WINSLow
High
Failu
re ra
te
Market testing
Absolute
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
Doesn't have a problem
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
SO WHY TRY?Low
High
Reve
nue
pote
ntial
Cost+15% Lots of competition
Potential $1B business
Almost no competition
Is aware of having a problem
Has a problem
Been actively looking for a solution
Assembled a solution out
of parts
Has a budget
ADDITIONAL COMPLICATIONA
B C
How conservative is your market?
KEY CHALLENGES• Identify and adjust to customer/market stage • Different stages require different marketing and sales approaches • New product revenue is by definition much lower • Get market feedback as soon as possible • If the product succeeds, be prepared for a fast ramp-up
AirBnB Facebook iPhone
BUSINESS FOR ENGINEERS
Jan Isakovic @iYan
1: Customers and sales 4: Value proposition
2: Product conception 5: Core competencies
3: Minimum Viable Product 6: Company values