How To Use Sales Power To Fuel Funding

March 5, 2008

Written by Debbie Mrazek

Which came first? The chicken or the egg? When it comes to raising venture capital, it’s hard to tell whether a companies sales lay the golden egg or are the golden egg. On the heels of a dot com slowdown, a tried and true business model is reemerging and offering an effective, proven way to approach investors.

It’s no secret that not so long ago investors, eager to cash in on an exploding Internet e-conomy, happily funded technology companies headed by strong teams offering futuristic wares. Some of those companies came to the table with a viable business plan and others hoped that funding could command their business model. It didn’t take investors long to learn the technology ropes. Now, high-tech companies looking for funds have to wow investors the old fashioned way - with an impressive product offering, savvy professional team, investment-worthy business plan and financial data worthy of securing the dough. Funding in the new millennium is hardly an undertaking for the faint of heart.

Next, enter sales. What if tech companies incorporated their Plan B into their Plan A? Ah, yes, now we are talking. Plan B, of course, is to start selling the product or service - just in case the VC doesn’t come through. Spin that idea around and marry it to Plan A and you have a tech formula for success.

Sales could be your key to the VC vault. Venture capitalists are looking for a revolutionary product or service that can offer them a handsome return on investment. If your company sales prove that your product has a market - we’re talking customers here - and you have the plan to take it successfully to that market, then you are that much closer to securing the funds you desire.

Powering up sales to ignite funding offers more than a safety net. In one instance, a company incorporating a sales plan with the path to funding found that company sales funded the business sufficiently enough that venture investment/funding was no longer needed. The team redirected more energy and effort into sales and increased the company’s return exponentially. If the company moved along the funding path, it could still be waiting for VC instead of running an explosively successful operation today.

So what does it take to put your sales vehicle in motion? You need to start with a plan. As critical as your business plan is to your venture, so too is your sales plan for your sales activities. Time is money and, as an emerging company, you have to maximize both. Unless you successfully have managed the sales process, it’s wise to spend the money and invest in a person or a company that has a track record in your industry for growing companies such as yours. Be sure that the sales pro knows how to work with the resources you have available.

When you meet with prospective sales consultants, be honest about your situation.

  • How many people can focus on sales activities?
  • What, realistically, is your sales budget and how long can you commit to the plan once it is developed?
  • How much time can company leaders devote to tracking, follow up and redirection?

Next map out who, what, when and where.

  • Who will develop the sales strategy and plan?
  • Who will execute it?
  • What is the process?
  • What are the goals?
  • When will you start? When will you review your results?
  • Where will you begin your action plan?
  • Where will you find the operating funds to keep the show afloat until you realize tangible results?

Then, put your plan on paper and commit to it. Set your weekly, monthly, semi-annual and annual sales goals. Execute and analyze. What’s working? What isn’t? What can you do better - smarter? What was a miss and why? Log all activity into your sales journal and tweak the process until you get it right.

Once you are on the sales track, reach out to mentors or others you know who have successfully grown their companies through increased sales. In sales, the goal is to work smarter, not harder. Tap into your true sales potential and you will be on your way to growing your company and securing funding - through VC or, at a minimum, your own sales power.

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