If you know how to sell, you can become a Millionaire
https://www.linkedin.com/in/victorvecsei
B2C vs B2B
B2C … selling products B2B … selling people and skills
| B2C | B2B |
|---|---|
| popularity | sales |
| product first | client first |
| marketing | Human Resources |
| investors | no investment |
| long time for revenues or profits | high revenues + margins |
| IT Support |
How to get started
business is not about you, it’s about the clients
understanding problems of customers Sales
What?
simple service … do not reinvent the wheel
Bootstrapping B2B
With Who?
Co-Founder should be good at something that you are not → looking for a good match It’s about complementing each other, amplifying each other’s strengths
choose complementary 16 Personalities for your business partner
50/50 split between you and co-founder
do not do 3 people unless it is very important
The first thing
- Sales
- discounted rate
- receive feedback and be patient
- Implementation
- implement feedback
- innovate with new insights
- Sales
- Implementation
- on and on and on
Sales Funnel
Why is it important to split up the process?
-
like with dating: on the first date you won’t marry the other person
- not scaring them off prematurely
-
filtering out the right customers and offering them the solution
-
do not take too long tho, otherwise people will be bored off
Implementation and Scaling
- Subscription Model
- allows for great predictability over the next months
- Matching: Customers to Employees
- 2 to 1 ratio
- 50% to 70% margin → keep it steady
- Scaling Rate → Revenue you win - Revenue you loose
- results in how many people you need to onboard
- Liquidity and Liquidity Planning
- Find someone that is great in finance at this point
Customer Success
- “Kundenbindung”
- making sure the customer stays with us
- forming a emotional connections
- sending them gifts
- personal relationships help when missing targets slightly
- logical results + emotional results
Legal Setup
- employee contracts
- customer contracts
- go to big lawyer companies and choose their startup prices
- do not use friends that study law
- work with the The Big 4
- in the long term get a dedicated person for these tasks
Q&A After
How did the exchange semester change your view on business
fostered the believe in that I can really do this. People showed me that it is possible and it inspired me to do it as well. It really is what I wanted to do, but the exchange semester made me actually pursue it.
Follow up: Bureaucracy
Founding in any developed country founding a company is about equally annoying. It’s something that is required
How do you identify customers to cold calling
have a strict target group. customers over 500 employees in Austria or Germany. Working with industry leaders (top 1 or 2 companies)
Why do you prefer cold calling over online marketing
it needs some expertise to set up the online funnel. It is also more difficult to reach people on social media. The decision makers are rarely on social media and therefore cold calling is the only practical way
Did the scaling rate change and did you stop cold calling
stopped outreach because there were too many requests. always stick to the ratio and don’t go chase the money into unrealistic ratios
Why did you choose this influencer with webster university
great potential for future applicants from russian area and therefore choosing an influencer with a russian background helped a lot
How did you get the experience with cold calling
getting a great script and getting a mentor in sales. also just exercising that skill of cold calling is something that needs practice
How do you handle the criticism of TikTok etc
legally they have not made a mistake. diversification from just tiktok is planned.
Why is the customer:employee ratio is only 2:1?
typical customer: 10k per month in spending customer needs constant service during business hours 4k per employee in spending → 16k per employee in margin focus on mental health and not overworking the employees in the future the ratio might be more, but for now it is planned to stay like that
How do you do pricing
price a little below industry standard to get new customers get a little more expensive every year to offer more quality
Raising prices of existing clients?
gradual changes are okay alert customers when prices are going to increase → 6 months before is good sometimes you have to cut away the customers because they cannot pay enough changed target audience and also changed pricing
How do you deal with competition / What is your USP
everyone has worked with big brands customer service is what keeps the customers with you we have just the better customer service everyone is super young do you want to work with young people to represent your brand or people that also do tiktok
Plans on expanding to American markets?
automation and deep market penetration in DACH region is key in the long run expansion is possible