A young company that focuses on personalized solutions needs to generate near-term
revenue to meet expenses. There are also options for debt or equity financing,
but the terms for each will equally depend on near-term revenue potential. How
do you generate near-term revenue?
from the CEOs:
in terms of the referenceability of early customers. As a new company, the first five customers
define the company to future customers.
core values of the company will help clarify how to make early choices.
just go for the easiest closes.
a chart of potential customer prospects:
potential prospects into groups.
is the deal model and key value proposition for each group?
a video and communications package to demonstrate the company’s benefit to each
are trade-offs between the different deals that the company will pursue:
fast deals are most likely to meet immediate cash flow needs.
biggest deals may involve the creation of LLCs. These will involve both more
time and additional legal fees.
sure that early deals align with the company’s core brand.
outsourcing to speed the provision of services to early clients. Build this
cost into your billings. Assure that the funds from early deals flow to or
through the company. This will improve the financial story to additional
serving special interest groups. Their potential value is that they work for
their passion more than for money. If the company chooses to work with one or
more of these groups, assure that customer selection aligns with company values.
current focus for near-term monetization is on merchandizing. As an alternative,
consider charging a separate fee for the use of company IP. This may give clients
additional incentive to utilize company technology to monetize their
Situation: An information services company wants to launch a new product in an existing market. Their current brands are well-recognized with excellent reputations. Should they tie the brand to the company name or current products? How do you brand a new product?
Advice from the CEOs:
Brand specifically for each product or market – just as consumer product companies brand the same product with unique names for each consumer or commercial market.
A brand name is not the company’s identity – Apple as a company has created separate brand identities for computers, iTunes, iPods and serves multiple markets.
Attend conventions and survey the target market and current providers. Network to meet people and ask questions about what is important to them and to their buying process.
Think about the marketing funnel. The first element is awareness.
What are the company and its current brands now known for?
Build a brand with value that leverages the reputation and expertise currently valued by customers.
Define the current and planned market segments and tie branding to them.
Who are they?
How do they do it?
How will the new product fit?
Look at ROI for each market and create a strategy for the optimum combination of speed and profitability of market entry.
Tying meaning to a name can be a mistake. When one CEO named her company and service around a specific capacity, she limited the way that it was perceived. She is now considering a complete rebranding to open new markets.
Hire expert consultants with experience in developing brands. While this is an investment at the outset, these individuals are better, cheaper, and faster than doing this yourself.
Monitor the consultants to assure that they are spending the company’s resources wisely and addressing the company’s needs.
Hire someone with a network to gather the data necessary to support the branding exercise, a project manager. Use more expensive resources to plan and manage the exercise, and less expensive resources to gather the data.
Situation: A company’s motto is that they serve the customer first. As an unintended consequence company projects get lower priority and action than customer projects. Frequently, the CEO finds that company projects are only half completed. What have you done to make company initiatives a priority? Who do you serve – the customer or the company?
Advice from the CEOs:
This is a great question. Clearly serving the customer has to be top priority. However, you also have to complete company projects, particularly those which are critical to company function or which will enhance your ability to serve your customers.
Define the company as a customer for important projects. Call this “billable hours” to the company and credit them as such on these projects. Accompany this with employee training on how to prioritize “company” versus “customer” projects when priorities conflict. It may take time to work through this, and for the message to sink in.
Add completion of company initiatives to the company kudos list. LInk company award eligibility to completion of company initiatives. For mission critical projects, grant double credit for completion of company projects. Adjustment of incentives will help to get the message across.
In employee communications, include updates on company projects along with customer projects and give equal or greater emphasis as appropriate.
Have you defined your “ideal customer”?
Include internal customers within your definition of ideal customers.
This will help to clarify and prioritize opportunities and shift the mindset.
For mission critical projects hire additional personnel or contractors.