Mit Softwarevertrieb ins Enterprise-Segment vorstoßen

0:00Unternehmer/Gast We have Flying Logic, which is a software that is designed to help with the Theory of Constraints thinking process. >> Flying Logic? Flying Logic. Okay, got it. Okay. I just I heard Okay, keep going. And we sell to anywhere from consultants all the way up to huge enterprises including big DoD contractors like Raytheon, Boeing, things like that. >> Um we were on a when the software started and didn't have any marketing experts, it was on a perpetual licensing for many years. Right. Um we switched it to SaaS like 15 months ago. We've gone from zero MRR to 10,000 period of time.

0:31>> Okay. But we're still at, you know, 200K revenue looking to break through. Yeah. Um we have a real pricing problem. We know we're really underpriced. >> Okay. Um Sammy suggested that we start breaking into doing enterprise sales at like 250K for a site license, things like that. >> That's kind of >> Given that it's the three of us, we don't have a ton of cash. >> Yeah. And uh I was wondering what's the best leverage way that I can use myself, my comfort with high ticket sales and things like that to break into that type of B&B [clears throat] sales B2B sales with those type of enterprises. So you said you have comfort selling high ticket, correct? So where are you selling high ticket now? I've done it in the past with my company.

1:08>> Okay, got it. Got it. Got it. Got it. Okay. And so the software helps people do what? Just use the Theory of Constraints? It helps people visualize the diagrams, the Theory of Constraints thinking processes, current reality trees, future reality trees. You can use it for all kinds of things, mind maps but too, but it's basically very unlike Visio in that you connect A to B and then it magically rearranges itself. So it removes all the friction of creating these kinds of diagrams, especially when you have a whole group of people shouting out stuff and you're making changes. Yeah. You don't have to go away and come back the next day with all your

1:36>> sounds like a it's a consultant product. Um yeah, very it's used by consultants. >> like, right? It's like And one of the things probably worth looking at is like who is I mean this is every software company. Well, actually really every company has to do this at some point, which is like who do we serve? Right? And so if you have like I mean if you already have contacts at Raytheon and all that stuff, like I don't even think that their budgets round down to $10,000. [laughter] Right. And so yeah, I mean I think they wouldn't even believe you if you charged them less than a million. Um We get a contact from Citibank who sends us a PO for 25 copies. They're trying to see lights so we actually PO them. They uh we send them the license key for them to manage and then they send us a 10-page contract of all the other additional things they want us to agree to. Uh-huh. And of course we, you know, that we don't have a corporate lawyer to review that and redline it. Yeah. That doesn't really happen that often. A lot of times what we have we do get onesies and twosies in these companies and a lot of times it's through a reseller and an asset manager is the only email address that I have.

2:29So I want to be able to talk to the actual >> How'd you get the $10,000 a month? Um well, basically the people who have started using Flying Logic back in 2010 with version one, they're very sticky. Right. >> And so they stay and then so when we when we moved to perpetual they're what from perpetual to MRR, there was some whining, but you know, a lot of people really converted over. We offered them an upgrade deal. We're building out Flying Logic Academy to >> How'd you get those people? 14 years ago. >> How 14 years ago? The original software was developed I developed it for Northrop Grumman. Okay. Uh using their internal research and development money.

2:59Alex I licensed it back from Northrop Grumman to become the perpetual publisher. >> Yeah. Um so I still pay them a small royalty, but um essentially Northrop Grumman started using it. They have a site license for everybody in their company. I don't know how many people use it in the company, but people from Northrop Grumman then go to Raytheon, they go to Boeing, they go to Lockheed Martin, >> that? Um I'm not allowed to use them We say it as a matter of fact, but it's not it's not something we can do. >> give them a royalty just to be able to say that. Yeah, >> [laughter] >> we we have we have If you look at our website, we we have a nice we have a nice gallery of logos on our website, you know, Sandia Labs, Yeah. So you we have two things, all right? So actually three and they're probably the three most important things that you need to figure out, which is you need to figure out who you sell to, you figure out how much you're going to charge them, you figure out how you're going to get them.

3:39Alex And so right now if you have if you have a product that already has a clear use case for enterprise, then I would probably go whale hunting rather than go minnow hunting, >> Mhm. right? And so if that's the who, the price is going to going to be relatively self-explanatory, which is you're going to get into the conversation with them and just say the biggest number you can possibly think of Okay. and just see how how they react. You can always go down, can't go up.

4:04Right. Right? And so seriously, big number for everybody. Just say the biggest number you can think of cuz what the worst worst feeling in the world is when you're like 250 grand, they're like, okay, and you're like, >> [laughter] >> I could have got 500 on that. You know what I mean? And so that's the who, that's the price and in terms of the advertising method, you guys have background, you know people that have been in those in those in those businesses and they do have typically long sales cycles that you're probably accustomed to. I think the issue that you've had with like these one-off contracts and all the contingencies and terms is simply cuz you don't care for what you're charging.

4:42Right. >> So at what price would you be like, oh, I don't care. Yeah, I'll agree to all that stuff. And so I think yeah, fundamentally from a strategic perspective, it's a pricing issue, Mhm. which then kind of ladders down to, okay, who can afford the price that I want to do it and then what's the friction that's associated with selling to those types of customers? Well, it's not worth it for 10 grand a month. Right. >> It's worth it for a million a year. Right. So then I think that's and I think you're honestly like one deal away from fixing our cash flow. I think so, too. Cool. Now, you have If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So my team and I put together the $100 million scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly, where they got stuck and how they got past it. And so we broke it in these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources and finance. And so no matter what you're struggling with, someone else has already struggled with it and solved it.

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