Poor Distribution Leads to Failure
Poor distribution — not product — is the number one cause of failure.
By finding just one distribution channel, businesses can start to create revenue. As the business grows and becomes more hungry for resources, the distribution must also increase to keep the wheels turning.
The importance of distribution holds if you have existing income and looking to generate new revenue streams or still finding your first one.
As Paul Graham (from the famous Y-Combinator Accelerator) said in his essay “Do Things that Don’t Scale:” “One of the most common types of advice we give at Y Combinator is to do things that don’t scale. A lot of would-be founders believe that startups either take off or don’t. You build something, make it available, and if you’ve made a better mousetrap, people beat a path to your door as promised. Or they don’t, in which case the market must not exist. Actually, startups take off because the founders make them take off… The most common unscalable thing founders have to do at the start is to recruit users manually. Nearly all startups have to. You can’t wait for users to come to you. You have to go out and get them.”
This is what I refer to as hand to hand combat — going out face to face. From experience, this business development is how companies have scaled past their first seven-figure revenue.
The great thing about going out and having conversations face to face is that you can adjust your pitch. You can learn about what language makes people’s pupils dilate. You learn about what to say and when. You get to learn how to overcome the most common objections.
This, in turn, feeds your digital sales process down the line, but until then, you have to get a real feeling for your market, and that is by leaning into your market in person.
Validate new revenue streams by learning about your product proposition but don’t forget to establish and learn about how you will distribute your solution once you are ready for the market.
PS: I help tech businesses with their go-to-market strategy. Find new revenue streams, acquire customers and increase revenue. There are a number of ways I might be of help.
1. Create a product that stands out.
Get guided through the market validation process to help you figure out your market, your product and your business model.
2. Go-to-Market & Sales Strategy
Create your go-to-market strategy, crystalise your sales systems to attract more customers and grow your revenue.
3. Let’s work privately.
I help sales managers and business owners get clear around their messaging to customers and stakeholders.
Action breeds traction,
Flavio Hangarter
