Sales leads – new revenues for you!

It probably does not come as a surprise to those who are misfortunate enough to follow my tweets, that we, at edocr.com have embarked on a major programme to deliver real measurable value to an existing asset you have, but probably was never trully aware of its full potential until now. Yes! we are speaking about the documents (pdfs) you produce daily, weekly, monthly and/or annually to communicate with prospects, customers, suppliers, shareholders, government, authorities, and anyone else that you need to communicate with, without dilvulging confidential information.

Among these documents are the traditional sales and marketing collateral, but there are other documents produced for operational and regulatory or any other purpose that could equally be applied in the right environment to generate interest that will lead to new prospects for your products and services.

Ask yourself these few questions:

1. Do you see sales and marketing collateral, as well as operational and regulatory and similar documents as a cost? What if this could be reversed? Documents becoming a profit centre instead of a cost centre contributor?
2. Do you know how many documents you have produced over the last 5 years for external consumption? Do you know how many of these are available in your web folders, but no one can trully find them through navigating your website. You might be startled with the true figure!
3. Any ideas about the cost of above? Any ideas of how much revenues you generated as a result of your spend in documents? You may have never wondered about ROI, but shouldn’t that be an interesting figure to talk about?

Without diverting too much from the topic, we at edocr.com are on a mission to turn your costly documents (I am not referring to print costs, but the costs involved in producing them, mainly human resources) into revenues for your company.

As part of this, we have embarked on a major development programme to provide you sales leads from your existing document inventory. At present, we are preparing edocr.com so that we can provide you a tool kit to extract data out of edocr.com with user consent where required.

Integration Options

We believe our role should end with collecting sales leads and then handing over those leads to organisations which can add significant value further upstream. This is where Salesforce.com and its ecosystem, App Exchange comes into play.

Given that Salesforce.com is not the easiest product to integrate with, mainly due to their pricing strategy, we believe we have three options available for consideration:

1. Traditional web-to-lead forms
2. API, especially as edocr.com is based on OAuth and salesforce.com now has OAuth capability
3. App Exchange

Your Contribution

We must accept we are not experts of salesforce.com, but have the resources to implement the integration once we know damn well which one would work for us. I see two options:

1. Integration with salesforce.com using our resources
2. An app which will receive the leads from us, but left open for others to integrate to suit their needs, perhaps incorporating further value addition from salesforce.com partners

This is an exploratory article, asking your help in formalising the right option for us. We believe that there will be significant up sell opportunities for all who will get behind us in this venture. We are truly excited to be working with salesforce.com (especially you, Mr. Barker) and its ecosystem, who are well oiled on generating revenues.

As edocr.com continues to grow, it has become essential for us to adopt the right tools that will make our lives operationally little bit easier. Now is the time for us to leave spreadsheets and move on to products that will bring structure to a very chaotic environment. Two tools will be key to this strategy of operational simplification.

Customer Relationship Management (CRM)

We have adopted Contact Manager from Salesforce.com, which is affordable and versatile enough for our needs. And we know that as edocr.com grows, we have a path for increasing the CRM functionality to match with our future needs. In addition, we see salesforce.com as a strategic partner, so it makes sense for us to also be using their products, vice versa.

Accounts

Having used Winweb for a brief period, we are now trialling Xero, a SaaS product from one of our growing customer base. I love the simplicity and the design and yet to fully test it. My gut feel says this is the right product for us. And these days, I put lot of trust in to my gut feel.

Alignment

Ideally, we love our own database of users and customers to be in sync with CRM and accounts products we have adopted. So integration and free availability of APIs are fundamental to achieve this. I have been a keen advocate to see Xero and Salesforce.com establish the ability to data exchange.

It was good to hear from Tony Rule of Xero yesterday that they have infact gone live with the integration

Pricing Dilemma

Let’s take a brief look at the costs involved for one seat license across both products for one year.

• Salesforce.com contact manager = £36 (we have subscribed for 2 seats)
• Xero = £144 to £228 – the more expensive option is suitable for edocr.com

Here is the problem. For me to benefit from having synchronisation of customer data across saleforce.com and Xero, I would need to upgrade my account to either:

• Salesforce.com enterprise (£1,020) or unlimited edition (£2,040) (where API is part of the licence) or
• Salesforce.com professional edition (£540 plus more) (where API is not part of the licence but you can add it at extra cost).

Conclusion

The combine cost of subscribing to Xero and Salesforce.com now needs to go up from an affordable £264 to over £1000 to achieve integration. This is clearly not an acceptable situation for us. I love to comment more on this aspect, but as I have a half written post on pricing strategies, I think I should better leave it till then, other than to say, at this stage, we would have to operate without synchronisation. Just to add salt to the wound, products like JavelinCRM and Xero can achieve true synchronisation without any additional spend!

Marc adopted similar principles to me in getting the product to market as quickly as possible. As he says in his book, “do it fast, simple, and right the first time”. Based on my discussions with another tech startup from the north, they have rewritten code number of times to get it right. I do not see this as a problem, as you evolve and your goals change, so should the code, unless you can read the future.

At edocr.com, we had another consideration, how to build without spending money! We achieved this through using open source products as much as possible. In addition, we inherited a technology stack, that each of the team was familiar with, which ensured, low cost and speed to market.

Unfortunately, the “right for the first time”, requires mammoth resource base. I am not talking about 100s! But it require more than one or two developers. In my opinion, your initial customer facing product, should not require the effort of more than couple of developers. Remember, at this stage you are gambling, unless you have a customer who has already paid for your product. Don’t be embarrased to release a product with few known glitches. It’s OK as long as you disclose you are working on them and do have a plan to clear the bugs quickly. By getting a product out to market quickly, you can start validation quickly and your users/customers will not just help you to test and identify bugs, but will also help you validate the product map. But be careful not to build every functionality your userbase asks for. You may end up with a product users like but may not have any chance of ever commercialising it.

Marc speaks about keeping things simple, no fluff as he elegantly put it. He also speaks about their early focus on developing the best possible and easiest to use product; focus on the 20 percent that makes 80 percent of the difference. Whilst I whole heartly agree with this and wish we could have adhered to similar principles, we were constrained in many ways.

Few of the key questions I ask myself before we venture into any further development on edocr.com are:

1. what is the expected return – this is not about putting a scientific figure against an expected ROI, its all about your gut feel. By now you should know your market inside out and know well what could make money and what couldn’t
2. who requested it – if its a customer (better if its more than one) request, and you believe it ought to be provided, yes! but if it was requested by a user that is unlikely to ever pay for you services, think twice before you commit your scarce resources.
3. do you have to do it – perhaps for legislative or any other purpose, including the future failure of your product or its infrastructure. This is no brainer, you got to bite the bullet and commit resources.
4. what about the competition – this should not be a good enough reason. Does it achieve differentiation that will increase value. Be careful in copying your competitors.  The one with the biggest market share and capital will ultimately win. So look for differentiation and try to carve a niche, which may help you discover a short cut that will eventually put you in the no. 1 seat. It does not matter, if the rest of the world does not get this, but make sure you test it over and over.

Couple of areas we are working on at edocr.com right now with comparison to above 4 points:

1. Lead capture – there is a significant revenue opportunity, so this meets the “expected return” test
2. Ability to update documents – requested by customer. Even I within edocr has this need to update our brochures, etc. We have the same requirement from Northern StartUp 2.0, who is edocr.com’s first customer.
3. Limiting “email this” facility – at present, edocr.com allows ability to promote documents by emailing document link to unlimited number of email addresses. Unfortunately, this functionality has been misused, resulting in two hosting companies giving us a warning. All our development time is now diverted this week to fix this problem. Fortunately, this has created another (1) and (4) opportunity for us.
4. We cannot compete with the likes of Scribd ($13 million investment) and Docstoc ($4 million investment), but can carve our own niche. Hence focusing on the enterprise and the benefits we can bring instead of focusing on consumer markets, such as taking Amazon.com head on with book sales.

If you are planning for your first tech startup this festive reason, think about how quickly you can get to market, and the four points I raised in here. If you a startup veteran, please share your experience.

For first timers: I am comparing my experience against Marc Benioff who founded Salesforce.com and grew it to be the first $1 billion revenue SaaS company.

Previous posts:
- Forthcoming knowledge share blog posts against Marc Benioff

Having met Marc Benioff on 8th Dec 09 in London and having finished reading his book, “Behind the Cloud” recently, I will be sharing my experience against Marc’s through a series of blog posts. In his book, there are 111 plays. I will be picking plays randomly and would like to invite you to do the same by leaving you experience as comments against my posts.

But before I can start, here is a reality check:

Marc was well connected, influential, secure and financially stable before he setup salesforce.com. In addition, he lived in the epic centre of technology, San Francisco and invested $6 million of his own capital before raising $60 million over the next 3 years. Very few in the technology sector has the resources Marc had in bringing a SaaS product to the market. He had a vision to change the industry and he did, but one cannot ignore the fact that he had the best possible start irrespective of the difficulties he has disclosed through his book.

Now I am not going to compare myself against Marc in this respect, but will compare my journey with edocr.com against ebdex (my first startup that I shut down in 2006). When I started ebdex, I had significant startup capital (nothing compared to Marc’s $6 million), years of corporate life and a brand new MBA. I knew nothing about technology, the sector I ventured into and had zero startup experience. I saw the opportunity and did my research to understand the size of it. I also had confidence (self belief) and an ego the size of Paul Walsh.

When I started edocr, I had very little startup capital, plenty of scars from ebdex, a network of tech entrepreneurs and friends, and bunch of others who wanted to be part of edocr. Things have changed, but here are few areas that mattered to me at the time

- Built the product without spending anything – The actual cost when soft launched in Oct 2007 was under £500
- Speed to market – should have taken weeks, but at the end, it took 6 months. We launched a product with bugs under Alpha
- Not to put all my eggs in one basket – now VCs hate this, they believe that if you invest cash, you should just be concentrating on one business, and only they know how to share risk and you do not.

Of course, since 2007, we have spend significant amount of capital, still fully embracing the low cost model. I continue to be a strong believer in sharing risk, so 2010 will see my continuing efforts in driving both edocr and Northern StartUp 2.0 forward.

Now to get to the first post….

As I am in the thinking mode, one thing I am not good at is sticking to one tool for planning instead of using multiple tools. Just to get my head straighten, I thought it would be better to write it down, so here goes.

1. iGTD (1.4.5.6) from fasticon/James Wondrack – great little GTD tool for Mac. It synchronises with iPhone app Todo (1.6.1) through Appigo Sync (0.9.6 Beta) and Mac’s own to do items displayed through iCal and also on iMail. iGTD2, the replacement to iGTD caused problems in the past with synchronising. With my intention of keeping all things simple, I took the decision to stay with iGTD as it met all my needs at the time, and continue to do so.

2. Mindjet MindManager for Mac is not as extensive as the version for PCs. But nevertheless a great tool that I have been using since 2005 (Mac version since 2008). I have a template for monthly, weekly and daily planning that I built. But I do not use this on regular basis, which is not excusable.

3. Salesforce.com – this is my latest tool, which also provides a calendar with tasks.

As they say, three is a crowd. Here is how I plan to use these tools in 2010.

a. All tasks except sales related will go on iGTD.

b. Monthly and weekly planning with daily monitoring will be through Mindjet. The relevant tasks need to be manually added from iGTD to Mindjet, duplication of effort nevertheless. I am at ease with how Mindjet display information, which I find easy to absorb than typical to do list reports, which iGTD produces.

c. All sales related tasks will be on salesforce.com for edocr.com. Need to make a decision about how I will manage Northern Startup 2.0 commercial activities. On one hand, salesforce.com may provide the solution (low cost contact manager and familiarity from edocr.com use case). On the other hand, supporting local startups such as Manchester based JavelinCRM (more expensive but with mailchimp integration) is vital for my conscious. But it would have to be a commercial decision at the end.

The key to success in all this is consistency. It’s not about how great the individual or combined tool set is. If you do not consistently use these, the end result will be a mess leading to less effectiveness as an individual and team player.

There is another tool that could perhaps play a role. Tiyga, a product from another local tech startup, which helps you record how you spend time. It has ability to let you plan ahead and then monitor progress with weekly analysis of your performance. Whilst it has been a great product, and I have test driven many variations of it over the last 3 years, the problem I find myself with is lack of consistent usage, which comes from poor self-discipline. And it’s also about micro-planning and monitoring, which require a mindset change. Unfortunately, I am less disciplined than when I had a 9 to 5 job. One thing is for sure, I am going to give it another shot in 2010.

The key objective of all this is to be the most effective you can be, with the fixed time available. I hope I will be more disciplined and effective in 2010 than I have been in 2009 thanks to these tools plus a strong will to make a key difference in 2010. 2009, from both Northern Startup 2.0 and edocr has been a year of commercial trials. 2010 is about making it happen! Wish me luck folks!

Do share your thoughts on what tools you use and their effectiveness.

Update

It looks like iGTD has merged with Things. For the time being, I will continue to use iGTD and consider migration later on.