I initially thought the notion of a startup "grind" was a trendy saying -- or a company name. But as I talk to founders, I'm learning, like many entrepreneurs before me, "grind" is the best possible word to explain the process. Keeping confidence levels high is a daily battle and can affect the self-perception of yourself and your company. This struggle makes it difficult for startups to do what they all must: go big.
At the most recent Startup Grind Charleston event, Sam Staley, CEO and Founder of Bidr, reminded us that startups shouldn't be scared to go big, even if they are small. Sam has a long history of starting new businesses and had to learn the lessons the hard way, just like everyone else.
Starting out Small
Atop the PeopleMatter rooftop in downtown Charleston, Sam told a story going back to his early days as a freelance developer. He was fairly new to coding and decided that his entry point to the market would be that “he could do any job for $800”. He was successful in his approach to get new business but the projects he was receiving were less than ideal. He took a chance and raised his rate significantly and found that not only was he getting better projects but they were from larger customers.
"Sony, Big Company B, or C, won't hire cheap work because they want the best quality. A higher price for the same work surprisingly made myself more marketable," he argues.
The key here is that Sam was undermining his value without even knowing it. If he didn't find the confidence to go big, he may have never found his value. Sam also passed along knowledge to the audience about going big and asking for that big first sale.
"Don't forget that every proposal, sales quote, or RFP, even at a huge publicly traded company, actually lands at the desk of a person. Many times, the person behind that desk is less experienced or less knowledgeable in the field than you are. Don't be scared to approach a large client or project just because of the name on the label".
I know, I can hear you now: "Sure... this advice works well for startups that are hot, growing, and have plenty of resources. What about my little business, with $0 in the bank?" Sam also gave the Charleston Startup Grind audience a tactic built just for this scenario. He calls it "selling the ghost".
How to Sell the Ghost
Lack of capital, time, and resources force early-stage startups to be creative. A specific feature or product that you want to sell or license may not even exist yet. That is where "selling the ghost" comes into play.
You can still sell the vision behind your solution and deliver it in full to a happy customer. Just because a specific feature or product isn't built yet doesn't mean it won't bring value even to large companies. Focus on what you can offer and sell the value behind "the ghost" -- and then deliver. To be clear, we aren't talking vaporware: we are talking about validating the need a customer has by securing a sale before spending resources on getting it built.
This works especially well for new features and add-on modules to a product. If one or multiple clients are willing to fund the development through a sale, this not only validates the need & use-case for the new feature but also provides you with the resources to get it done.
Sam also told the group, "Again, don't be scared to sell the vision and build for even large clients. As a startup, you can offer more attention, customer service, and focus than larger competitors".
I recently followed Sam's advice and asked for a larger sale that I knew I wasn't quite ready for. It was a little uncomfortable but well worth the experience. While I eventually was given a "no", I wasn't as far off as I thought which ironically gave me more confidence about our company's direction. Plus, the feedback I received from the potential client was invaluable.
If you have a prospect in mind that you have been debating pitching or not -- go for it, and go big. You're probably more ready than you think.