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Ask HN: Anyone started an enterprise startup?

2 points by tixocloud 10y ago

How did you get your first sale for your enterprise startup? What was the process like? Did you manage to sell your product before building it?

smt88 10y ago
Almost 100% of the first sales in enterprises that I've heard of were due to a previous relationship. Maybe someone at the company worked for the enterprise or in the same industry. Maybe it's a friend or family member. Without that connection, it's almost impossible to make a meaningful enterprise sale. I personally would never build a product unless I knew I already had someone to sell it to.
deepthought42 10y ago
I'm in the process of creating an enterprise startup. We haven't locked down a sale just yet due to not having a completed product yet. We have learned that organizations tend to be a bit risk adverse, so no demo means no sale. However we are in discussions with a couple organizations. What I can say is that these discussions have only been possible because of industry connections. I do feel that if it weren't for having worked for these companies in the past or working with the individuals coordinating with their respective companies that we probably wouldn't even have gotten a call back.
- tixocloud 10y ago
  Yes, I've had the same experience and am wondering if I need to commit resources to developing a demo.
mindcrime 10y ago
Like @deepthought, we're working on an enterprise startup, but no sales yet. We also have had preliminary conversations with a few prospects, but nothing closed yet. The leads we have gotten have come from a combination of sources: 1. Some inbound leads where people find our website and contact us. 2. Some through Quora, where I used to post a lot, answering questions related to the space around where our product(s) fit. 3. I do a lot of speaking at events like All Things Open, and the local Java User's Group, Linux User's Group, etc., and we have gotten leads through some of those talks. My talks are never sales pitches, but they're usually at least somewhat related to something we're working on, and I typically throw in a brief mention of our stuff at the end. Beyond that, we have a Hoovers subscription, which you can use to mine email addresses and phone numbers for cold contacts. You can also find people and contact them through LinkedIn. We haven't really been cold-calling / cold-emailing yet though... still prefer to get the product stuff in a little better shape first. And yeah, for those of you who have been seeing my posts on HN for a while... we have been at this a while. The heart attack I had late in 2014 cost us a lot of time, and then in early 2016 we did a sort of mini-pivot and started focusing on a new product. Hopefully 2017 is going to be a big year for us.
- tixocloud 10y ago
  I'm sorry to hear you had a heart attack in 2014. Hope you're better. It's reassuring to know that enterprise startups work differently than what the typical startup advice is about. We've dreamed about presales but it doesn't seem to make a lot of sense that it's possible without actually building out a demo first and showcasing that. I've been doing a lot of cold calling through LinkedIn but trying to do customer development with enterprises doesn't seem to work. Seems like enterprises are almost expecting you to show them a solution instead of taking the time to talk about their problems.
  - mindcrime 10y ago
    I'm sorry to hear you had a heart attack in 2014. Hope you're better. Thanks. The doctors tell me that as long as I eat right, take my meds, and get enough exercise, I should be fine. Of course, doing those things isn't always easy, but I do my best. I've been doing a lot of cold calling through LinkedIn but trying to do customer development with enterprises doesn't seem to work. Seems like enterprises are almost expecting you to show them a solution instead of taking the time to talk about their problems. How large of companies are you calling into? I think, in general, the larger the company the more they want a complete solution prepared ahead of time. It may also matter what department you call into. If you haven't already, maybe try mixing it up... if you're trying to enter through IT, try a LOB unit. Or vice versa. Also, have you read Crossing The Chasm? If not, you might find it worthwhile. More food for thought, if you're not already familiar with the material: https://bothsidesofthetable.com/most-startups-should-be-deer-hunters-7fdecf58f4f6 https://bothsidesofthetable.com/most-startups-should-be-deer...
    - tixocloud 10y ago
      Thanks. The doctors tell me that as long as I eat right, take my meds, and get enough exercise, I should be fine. Of course, doing those things isn't always easy, but I do my best. Good to hear. Yes, sometimes life throws us things we don't expect but all we can do is just our very best. How large of companies are you calling into? I think, in general, the larger the company the more they want a complete solution prepared ahead of time. It may also matter what department you call into. If you haven't already, maybe try mixing it up... if you're trying to enter through IT, try a LOB unit. Or vice versa. They vary from large to medium sized within the industry but I guess they are still fairly large and resourceful from an outsider's perspective. Yes, I've been trying to avoid IT and focus more on business benefits rather than a technology implementation. Also, have you read Crossing The Chasm? If not, you might find it worthwhile. More food for thought, if you're not already familiar with the material: Thanks for the recommendations on the reads. I did read Mark Suster's post and am considering maybe shifting focus on deers.

2 points by tixocloud 10y ago

How did you get your first sale for your enterprise startup? What was the process like? Did you manage to sell your product before building it?

smt88 10y ago

Almost 100% of the first sales in enterprises that I've heard of were due to a previous relationship. Maybe someone at the company worked for the enterprise or in the same industry. Maybe it's a friend or family member. Without that connection, it's almost impossible to make a meaningful enterprise sale. I personally would never build a product unless I knew I already had someone to sell it to.

deepthought42 10y ago

I'm in the process of creating an enterprise startup. We haven't locked down a sale just yet due to not having a completed product yet. We have learned that organizations tend to be a bit risk adverse, so no demo means no sale. However we are in discussions with a couple organizations. What I can say is that these discussions have only been possible because of industry connections. I do feel that if it weren't for having worked for these companies in the past or working with the individuals coordinating with their respective companies that we probably wouldn't even have gotten a call back.

tixocloud 10y ago
Yes, I've had the same experience and am wondering if I need to commit resources to developing a demo.

mindcrime 10y ago

Like @deepthought, we're working on an enterprise startup, but no sales yet. We also have had preliminary conversations with a few prospects, but nothing closed yet. The leads we have gotten have come from a combination of sources: 1. Some inbound leads where people find our website and contact us. 2. Some through Quora, where I used to post a lot, answering questions related to the space around where our product(s) fit. 3. I do a lot of speaking at events like All Things Open, and the local Java User's Group, Linux User's Group, etc., and we have gotten leads through some of those talks. My talks are never sales pitches, but they're usually at least somewhat related to something we're working on, and I typically throw in a brief mention of our stuff at the end. Beyond that, we have a Hoovers subscription, which you can use to mine email addresses and phone numbers for cold contacts. You can also find people and contact them through LinkedIn. We haven't really been cold-calling / cold-emailing yet though... still prefer to get the product stuff in a little better shape first. And yeah, for those of you who have been seeing my posts on HN for a while... we have been at this a while. The heart attack I had late in 2014 cost us a lot of time, and then in early 2016 we did a sort of mini-pivot and started focusing on a new product. Hopefully 2017 is going to be a big year for us.

tixocloud 10y ago
I'm sorry to hear you had a heart attack in 2014. Hope you're better. It's reassuring to know that enterprise startups work differently than what the typical startup advice is about. We've dreamed about presales but it doesn't seem to make a lot of sense that it's possible without actually building out a demo first and showcasing that. I've been doing a lot of cold calling through LinkedIn but trying to do customer development with enterprises doesn't seem to work. Seems like enterprises are almost expecting you to show them a solution instead of taking the time to talk about their problems.
- mindcrime 10y ago
  I'm sorry to hear you had a heart attack in 2014. Hope you're better. Thanks. The doctors tell me that as long as I eat right, take my meds, and get enough exercise, I should be fine. Of course, doing those things isn't always easy, but I do my best. I've been doing a lot of cold calling through LinkedIn but trying to do customer development with enterprises doesn't seem to work. Seems like enterprises are almost expecting you to show them a solution instead of taking the time to talk about their problems. How large of companies are you calling into? I think, in general, the larger the company the more they want a complete solution prepared ahead of time. It may also matter what department you call into. If you haven't already, maybe try mixing it up... if you're trying to enter through IT, try a LOB unit. Or vice versa. Also, have you read Crossing The Chasm? If not, you might find it worthwhile. More food for thought, if you're not already familiar with the material: https://bothsidesofthetable.com/most-startups-should-be-deer-hunters-7fdecf58f4f6 https://bothsidesofthetable.com/most-startups-should-be-deer...
  - tixocloud 10y ago
    Thanks. The doctors tell me that as long as I eat right, take my meds, and get enough exercise, I should be fine. Of course, doing those things isn't always easy, but I do my best. Good to hear. Yes, sometimes life throws us things we don't expect but all we can do is just our very best. How large of companies are you calling into? I think, in general, the larger the company the more they want a complete solution prepared ahead of time. It may also matter what department you call into. If you haven't already, maybe try mixing it up... if you're trying to enter through IT, try a LOB unit. Or vice versa. They vary from large to medium sized within the industry but I guess they are still fairly large and resourceful from an outsider's perspective. Yes, I've been trying to avoid IT and focus more on business benefits rather than a technology implementation. Also, have you read Crossing The Chasm? If not, you might find it worthwhile. More food for thought, if you're not already familiar with the material: Thanks for the recommendations on the reads. I did read Mark Suster's post and am considering maybe shifting focus on deers.