Wednesday 15 September 2010

Knowing what to sell

I'm spending this week in London. Mentoring at Seedcamp Week. It's amazing too see how startups and even established companies are focused on sales. Which is good. What's bad is that quite a few of them actually don't know what they sell. They want to cater to the enterprise, some government agencies and local shops. That doesn't makes sense to me. I think defining the product and segmenting your customers is very imporant, actually crucial!

I had a chat yesterday with a CEO that gave me an honest answer:"I'm afraid that if I let those opportunities go, I might be missing on some lucrative revenue." True, but the responsability of the CEO is to take care of the bottome line, not just revenues.

Being scattered all over the map with numerous products and services adds costs, direct and indirect ones. Profits come from repeating the same thing and selling it a lot of times. Not by doing one time projects. Even if they sound really sexy.

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