Last week, I invested in an online application called “Pet Partner,” which helps veterinarians and pet owners

connect with their customers through multiple marketing channels, from postcards and email to apps.

The company meets real customer needs and provides valuable services, but that’s not why I invested.

Like every startup, the company’s success depends on its ability to get customers to buy the services it offers. I wrote the check

because the company’s CEO, Taylor Kavanaugh, gave me confidence that the company could make those sales.

because many startup founders try to Convincing investors that they can sell, I think it would be helpful to explain some of the ways

entrepreneurs do this.

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1. Show customers the value of your product

You can only succeed in the early stages of your business by offering customers valuable deals. The “Pet Partner” app offers valuable deals,

Two pieces of information convinced me of this. First, I spoke with many of the company’s customers, and they all agreed that they were saving money by

The “Pet Partner” app service—and, moreover, any of them could propose a scenario in which they bypass the providers.

الخاصين بهم.

Second, the data confirms customer loyalty to the “Pet Partner” app, with the company generating 99.4% of its revenue from monthly recurring revenue.

Prove that the value delivered to customers is high relative to the cost of acquiring them.

The value of the “Pet Partner” app is $12,800, but it costs the company $1,900 to acquire a sale. I think the value delivered

to customers is five times the cost of providing the service, which is a compelling ratio.

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2. Lack of familiarity with your sales metrics

You can’t shake Kavana’s sales metrics—he can tell you them as easily as most people can recite their children’s birthdays,

and he can tell you how many leads he generates at the start of each month. He can also give you the percentages of conversations he has

that turn into sales leads and the number of sales he can close each month, as well as the average number of days it takes to start and close a deal, and the share

of sales each month. By contrast, many business owners can’t describe any of these figures for their sales.

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3. Analyze Your Sales Metrics to Improve Your Approach

Some business owners analyze their sales without acting on what they learn. Kavana looks at his sales figures and asks how to

improving his company’s performance. Here’s a simple example: the data showed that sales at the “Pet Partner” app were highest when the team scheduled the start of

sales conversations with customers 2–3 days in advance. Sales closed at 2.5 times the rate of opportunities where customer conversations were scheduled

seven to eight days ahead. This led Kavana to set a benchmark for the average meeting-opening schedule.

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4. Find the right sales schedule for your business model

Some companies prefer the same person to handle both the beginning and end of the sales process, while others prefer to work with specialists, each in

their own role. The “Pet Partner” app tracks openings and closings separately, because this approach is much more effective and improves conversion rates.

In their industries, some people are great at closing sales but very poor at getting them started—even if they’re working with

the same person from the opening through to the close. Ultimately, even the best closers have nothing to close.

Many investors assess a founder’s ability to attract customers when evaluating a company’s finances at an

early stage. Verifying all these sales will ensure the investor reaches peak interest, as the “Pet Partner” app did.

بالنسبة لي.