Ever wonder why some sales opportunities start with a bang, accelerate with a frenzy, consume weeks and weeks of hard work until... they suddenly vanish into the valley of "we never heard another word?"
It's because those deals were never real.
But... but they liked us! They loved our product and vision! And they said they had budget!
Nope. While these and other facts may be true, the deal itself was never real because you didn't qualify it correctly at some level. Perhaps you overlooked something or suffered a foolhardy bout of happy ear. Or maybe you simply lack the necessary sales experience to qualify opportunities properly.
It's ok, we've all been there at some point along the road of startup sales.
But we need never suffer the mistake again.
Rigorous qualification - the right way
In startup sales land, our pipeline is that sacred list of deals that hold our future. It’s all the active opportunities we spend our time bravely battling away on in the hope of reaching startup Valhalla: a signed deal and some of Odin's gold.
Now, for each opportunity there are a handful of things you absolutely must know for it to qualify as good. And by good I mean you stand a decent chance of winning the deal provided your solution holds up and you execute flawlessly.
Not knowing them means you’re gambling on hope and luck.
So, what are these magical must know things, I hear you ask?
There are 9 of them. 9 things we absolutely have to know before any opportunity can be stamped with the hallowed status of "good" and become worthy of pursuit.
Being in the dark on any of them is bad. Bad because we can’t see properly in the dark (duh). Bad because we don't know where we’re going. Bad because you could be spending your time on better deals. Bad because... look, it’s just bad.
the 9 cardinal questions
These are the nine cardinal questions that will provide the unassailable truth to separate good opportunities from bad:
1. What is the business problem?
Solving a technical problem isn’t enough. You also have to find and align with the underlying business problem, for two reasons: First, you need that knowledge of the business pain to have meaningful discussions with the stakeholders because they really don’t care about technical details. Second, if there’s no business driver you’re simply going on a fishing trip to a lake that doesn't exist.
2. Why do they need to solve it?
Here you need to quantify the level of business hurt caused by the problem because only real and significant pain gets prioritised and budgeted. And you need them to make a full and frank confession, too. No pain confessed, no deal to win.
3. Can my solution solve the problem right now?
If the answer is yes, continue to question 4.
But what about when the answer yes, but not without some product development? Proceed with extreme caution.
If you only need to add a small feature or two then it might be safe to continue. However, if we're talking about adding a major feature (and most likely several) this is one very dark rabbit hole and could set your startup back months. What impact will throwing all your precious development resources have on your product direction, on your existing customers (who may already be screaming for bug fixes or eagerly waiting for your next release) and on the other deals in your pipeline? If you decide it's really worth pursuing, get a contract signed first with a concrete "when we build it, you will buy it" clause. Heed the warning folks.
4. When will the deal happen?
This is determined by finding the compelling event. And knowing when a solution must be in place defines a clear timeline for when things must get done. Lack of a deadline created by a compelling event is a key reason deals drift and drift.
5. Is the price on the table?
Did you put a number in play during the first discussion? Let me remind you that you are selling something, ok. And while you’re at it, who's holding the purse and have you spoken to them yet? Did you follow that conversation up with a proposal? Rule one of selling is to remind people at every step that’s exactly what you’re doing. If they don’t like it I strongly suggest you take your toys and find a better playground.
6. What is the agreed next step?
Agreeing what needs to happen next signifies three important things: 1) the deal has traction 2) it’s heading in the right direction and 3) everyone is aligned. But you also need the next step confirmed in everyone’s diary else that's a sure red flag the deal is about to start drifting towards the land of ain't gonna happen anytime soon.
7. Who makes the final decision?
Most deals never happen because you're dealing with the wrong person, meaning someone without the authority to make it happen. Get to the one who calls the shots and get there fast. If your champion isn’t ready to introduce you, or at least tell you who they are, repeat after me: red flag.
8. What is the buying process?
This is a whole different beast to knowing who makes the decision. Corporate procurement is a dark and nebulous place... how do you become an approved supplier? Does an IT standards committee hold a veto? What about security audits and financial due diligence? There are often many hidden hurdles that need clearing before you’ll get that signed contract.
9. Is a contract under review?
While proposals are nice, only contracts matter. Most companies won’t actually start the contract review process until later in the game, but always ask to start this early. It’s perhaps the single greatest measure about who is serious about doing business and who is just out kicking tyres.
Honesty required
Time is the most precious resource for all startups when it comes to sales. Investing yours wisely on deals you can win all comes down to qualifying them with honest rigour from the very beginning.
If you want to win more it's as simple as only playing the games you know to be stacked in your favour.
Poor qualification is the inglorious hallmark of the foolish and inexperienced. Stick to the 9 cardinal questions. Never deviate.
And feel free to reach out if you might need some help.
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