THE QUESTION : HEY U MYRAAH FOLKS :ARE U GONNA BE A BILLION DOLLAR VALUATION COMPANY OR DO U WANT TO BE A BILLION DOLLAR IN SALES COMPANY

WITH YOU HE MEANS

THE FOUNDERS OF MYRAAH

 

IE

SAURAV KUMAR

 

AJAY MISHRA

 

GAURAV KUMAR

Gaurav called me today. He said ” sir, whats happening at your end “

 i am mulling over last night’s question from a VC friend from Palo Alto California. I told Gaurav.. and one more question – the backup for the addressable market..size.

 

 

 

For entrepreneurs its an important question.


It has something to do with:

[a]

the VISION

[b]

the AMBITION – U can call it as some others may – the MISSION

[c]

the patience, the perseverance and there is one more word – with p – Yeah the PSYCHOLOGY


because? well because – many entrepreneurs get burned.


They are happy with an early exit .

Dreams of Seychelles, Sicily and Serenity of Goa, Eilat, Hawaii and Bali come to many an entrepreneur’s mind.

 

We just exceeded this month’s sales target. Its always good to have good news.


 

Later in the day: Dad asked me -” SO, how is your company doing?”

I told him : we want to be a BILLION DOLLAR REVENUE COMPANY

🙂


we are moving to a new office. starting February 5. Well February 5, is the Havan

what is a Havan? Well, its a Hindu event thing they do when they want to inaugurate a new beginning. Its the Hindu equivalent of a Blue Ribbon cutting ceremony

my mom will do her own Puja { Puja means worship and praying } in Lucknow house.

Gaurav – wrote this cool post.

Gaurav is a nice fella. Very Smart guy.

Gaurav was in London.

He did his Master’s of Finance in London.

And worked in London at Lloyd ‘s .

Gurav then did his MBA from IIM Ahmedabad.

Saurav is the younger brother of Guarav:

Saurav is my junior from IIT Kanpur.

Saurav is our Ramanujam – a MATHS MAJOR FROM IIT.

Go to the profile of Myraah IO
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Oct 1, 2017

Om’s (Shiva) law of Sales

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To my entrepreneur friends,

So you have figured out a product or service. You and your co-founders worked day and night to create a product or service.

Now, the most important battle begins — To find the product market FIT.

This challenge is enormous and this is why many of start-ups fail. They fail to sell.

I am no start-up guru. But based on my experience of over 10+ years doing start-ups I discovered a common pattern.

This may help other entrepreneurs make their first sales.

OR

even better discover a PROFITABLE AND SCALABLE SALES MODEL.


I call it OM’s law of sales. It sounds like OHM’s law in physics and actually works like that. But I renamed it coz I am a SHIVA follower.

Here it goes:

The idea of sales is to flow the money from customer to your bank account. Think of it like current flowing from point C (Customer) TO your Bank Account (B). WOW- Like C-2-B

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OK, this transaction is our goal. To make the current (Money) Flow from customer to your account.

But, you will need to overcome FOUR resistances.

R1 : WHAT ARE THE CHANCES THAT THE PROSPECT IN QUESTION IS LOOKING FOR THE SOLUTION YOU ARE SELLING

Real Estate Example: If you are selling a 1 BHK home. And you come across a prospect. But, She is actually looking to buy a 2 BHK. What are the chance of sale — 0%. No matter how hard you try you won’t be able to do the transaction.

Now the next example entrepreneurs will love. Suppose you are approaching a VC for funding. Suppose you have a services business.

 

BUT the VC invests only in TECH product.

The chances of funding is ZERO coz their money cannot cross the first R.

Simple. When you realize this. move on to the next lead.

 

Lesson: Focus and invest in finding the RIGHT prospect.

R2: WHAT ARE THE CHANCES THAT THE PROSPECT IN QUESTION HAS AN IMMEDIATE NEED TO BUY

Real Estate Example: If your prospect is actually looking for 1BHK home and you are selling 1 BHK home. Great R1 crossed with fair probability. Now suppose prospect says he is looking to buy in 3–4 months of time as he has started looking for a home. Oh, this means the probability of transaction happening is low. These kind of prospects will waste your time. Move on Buddy!

Now the VC example: So the VC invests in the business type you are in. Great. But they don’t are not in a hurry may be they will like to shop around for 6 months or so as they are meeting many start-ups. What are your chances buddy!

This happens a lot in the Angel world.

Lesson: Find prospects , who are hungry and you have the right food for them.

R3: WHAT ARE THE CHANCES THAT THE PROSPECT IN QUESTION HAS AN ABILITY TO PAY

Real Estate Example : Your prospect is looking for 1BHK. He wants to close the deal in next 10 days. How about his ability to pay, that’s R3. You realize his credit rating is bad and no bank will give him loan. FINISHED. He cannot buy. So move on.

Now the VC example: You spoke to an associate at the firm and everything is looking good. They like what you are doing and they like your team. Waiting for the cheque. Actually VC himself is waiting for the Cheque from their General partners. They don’t have the money RIGHT NOW in the bank. As they themselves are raising for the FUND -2. What are your chances of getting funded buddy !

This has happened with me and friends I know. So don’t discard this.

Lesson: Always confirm if the prospect has the money to buy what you are selling.

R4: WHAT ARE THE CHANCES THAT PRICE PROSPECT IS ASKING IS A PRICE YOU WANT

Now Suppose our prospect got the loan and all R1,R2 an R3 are satisfied. Now it’s a deal buddy. NO.

Real Estate Example: The last thing is that prospect may say: I can offer 30 Lakhs for the flat you want to sell at 50 Lakhs. Will the deal happen? NO.

Now the VC Example : All done. Now the VC gives you valuation of $1 M whereas your expectation is $5 M, Will the deal happen. Remember Snapdeal.

Lesson: Always clarify the price early in the sales process.

OK

Here is the summary:

Figure out all these chances (Probability) earlier in the sales process. So that you don’t waste time on wrong leads.

MULTIPLY them and calculate what the chances of sales are. If any one of them is ZERO. Trust me my HERO it’s gonna happen. MOVE ONE.

Here is OM’s law of sales:

CHANCE OF SALES =

(PROBABILITY THAT I AM SELLING THE SAME THING AS PROSPECT IS LOOKING FOR)

X

(PROBABILITY THAT PROSPECT HAS AN IMMEDIATE NEED TO BUY)

X

(PROBABILITY THAT PROSPECT HAS MONEY OR CAPACITY TO DO THIS TRANSACTION)

X

(PROBABILITY THAT PROSPECT HAS SIMILAR EXPECATION OF PRICE THAT I HAVE IN MIND)

Comments pls.

saurav’s paper is below

Mom asked me why i work?

here is why

PS: A BILLION DOLLAR VALUATION COMPANY MEANS $100 MILLION IN SALES – MULTIPLIES BY 10 TIMES THE SALES = A NET WORTH OF ONE BILLION US DOLLAR COMPANY

AND A BILLION DOLLAR IN SALES COMPANY – MEANS  MANY A BILLION DOLLAR NET WORTH COMPANY.

PS: AFTER A FEW MILLION DOLLARS – OK – LETS SAY $100 MILLION – IT DOESN’T REALLY MATTER MUCH – HOW MUCH MATTER ONE. ONE WAY TO EXPLAIN THIS WOULD BE – HOW MY PROFESSOR AT INSEAD SAID – HE SAID – THERE IS A LAW OF DIMINISHING UTILITY –

I WANT TO DO SOMETHING MORE THAN JUST HAVE MORE MONEY. .. SO, WHAT IS IT HONEY? DO U KNOW?

 

 

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