When I talk to fellow entrepreneurs about sales success and sales failures, I generally focus on the evolution of the sales process and personnel. Well, Mark Suster, a VC and very good blogger, lays out my view almost exactly in his latest post on Startup Sales.

Read the whole thing, but here are his bulleted recommendations:

1. Start by selling, yourself
2. Next you need to hire “evangelical” sales people
3. Don’t bring in the big guns yet
4. Do many sales meetings together
5. Don’t confuse your early sales success with a scalable sales process

This is an installment of the ongoing “Fatherpreneurship Series”, which is defined here.

When my son was about 2 years old, I repeated an experiment that my grad-school economics teacher told me about. I offered my 2 year old some candy. Then I gave him a choice. If he chose not to have candy that day, I would give him two candies the next day. He went with getting the candy right away. I upped the offer: three candies. This went on to about 6 candies when he started to think about it seriously. I quickly cut off the experiment then (Mom would have killed me) and we had a nice candy break.

As a father, a real scenario of choice is the act of disciplining a child and suffering short-term grief and trauma with the hope that this is a good long-term life lesson. This can be a very grueling experience and the easy path (giving the kid what they want) is sooooo tempting.

Business is the same way; startups especially so. The pressure to move quickly and keep moving “up and to the right” is very strong. Getting momentum and KEEPING momentum feels paramount above everything. So when a decision to take a short-term hit for a long-term gain comes up, the decision is always harder than it should be. What looks so sensible on paper feels so counterintuitive to an entrepreneur.

But take that deep breath and be like a responsible dad: live with the temporary trauma and headache of a sobbing, pouting, screaming kid so you can have a well-balanced child in the long run.

So what’s the chart? That’s our monthly unique visitors: one of the key currencies for consumer Internet startups. The pressure to grow “uniques” is very strong. Recently at Boxxet, we decided to make some big changes to our site (improved algorithms, new page link styles, moving out certain types of content) to make it stronger and healthier for the long term. But there would be a big short-term hit.

One of the benefits of being experienced entrepreneurs was that we knew we had to do it. So we took a deep breath and took the hit. And so far, we are seeing the gains. Whew.

If you are make, sell, or invest in software, you know that the LAMP stack is the heart of your application, the Internet is the nervous system, but what is your brain?  Sorry for the strained analogy, but I think entrepreneurs should think about how to take advantage of Wikipedia to make their software better. 

 I wrote a contributing piece on Venture Beat that makes the argument.  Check it out.

Over at the Boxxet corporate blog, where I’ve been blogging more, we’ve started the Metrics Series. In this series, we plan to share some fun and hopefully useful metrics around Boxxet.

Posts that are already up:

* Google’s search share is > 90% ?
* Jennifer Aniston vs Web 2.0

Check it out!

Late last summer, my then five-year-old son, my wife and I decided to put up a “lemonade stand” for fun.  Actually, we decided to sell these terrific ice cream cookie sandwiches that we make at home.  Vanilla ice cream sandwiched with two homemade oatmeal cookies, mmmmmmmmm.  MMMMMM….  Sorry, I was distracted there for a moment.

We had a great time.  We made some upfront decisions on philosophy, product, pricing, positioning and go-to-market strategy, but as in any “startup,” it did not go as expected.   Here are some highlights and lessons:

Clear Corporate Goals and Philosophy:

I figured the lemonade stand will help my son learn about cost of goods, the potential monetary profit of work, salesmanship, and responsibility.  I also wanted to do it because (1) I never did it as a kid and (2) I wanted him to get a taste of the entrepreneurship (see my line of work at my startup, Boxxet).

Maximizing profit was not our philosophy that day.  We wanted to learn, have fun and share our great product.

A Unique and High-Quality Product:

I’ve bought lemonade, hot cocoa, cookies and smoothies from kids all over.  I am a sucker for the stand and will stop every time to buy.  But I don’t often buy truly great product from a lemonade stand.  Yes, that is not the point (and why I always stop at stand), but I felt there was room for improvement.

The week before, we had made ice cream cookie sandwiches as a family for a party.  We had fun making, eating and sharing these desserts.  They were fun to make, easy to handle, delicious to eat and were a hit at the party.

It became clear to us that the ice cream cookie sandwich would be a unique and desirable lemonade stand product.

Product Pricing:

This was a discussion between my wife and I about this.  These types of sandwiches would go for $2-$3 at a store or restaurant.  I felt that the lemonade stand needed to keep a $1 threshold for someone to the stop the car and help the kid.  Also, I felt that we need to leave value on the table by giving more to the customer.  We looked back to our Corporate Philosophy and went with $1.

Of course, it was the five-year-old who nailed it when he said, “if they have money, it costs one dollar; if they don’t have money, it’s free.”

Go-to-Market Strategy and knowing when to change it

Our first plan was to market via cute kid and kid-created signage along a high-traffic road in the heat of the afternoon.  We abandoned the strategy after about 10 minutes.  In the end, I believed we would have sold our inventory, but hanging on the side of a busy road was not that pleasant and it wasn’t fun to watch 30 cars pass by without stopping (people are intent on getting from A to B when they drive).

Then we went to the local park where people were hanging.  While we thought we could sell stuff there, we did not want to “sell” to or bother people who are relaxing.  Once again, we turned to our corporate philosophy and we moved on.

So we did what my son wanted to do in the first place.  Sell in front of our house.  It was lower traffic but much more highly targeted: neighbors who were more motivated (guilted?) to buy.   Turned out to be a great move.  We hung out, brought out music, chairs and drinks, had neighbors hang with us and caught up with people who were walking and driving by.  We had access to corporate HQ for freezer needs and potty breaks.  There were a great deal of intangible value. 

Building The Right Team

We knew we had the back-office and operations all handled (mom and dad).  Once the people saw the product and price, they were willing customers. But we knew we had a hole on the sales side.  My son is a great closer but not a good opener.  He’ll engage in a great conversation once warmed up and the customer will want to buy.  But he’s not the “jump up and down and holler at the top of his lungs” type (pretty useful for a lemonade stand).  So this leads me to..

When to Hire Your VP of Sales

At one point, our ten-year-old neighbor came over to see what was going on.  He volunteered to help.  We quickly agreed as we just gotten to our final selling spot after unsuccessful attempts elsewere.  He hopped on his bike and started tracking down cars and bringing them to the stand.  We had our “opener,” some would call him a “hunter.” He insisted on helping for free but we made him take a commission (need to have a “Win Win”).

Relying on Friends and Family:

In a startup, you often rely in friends and family to help get the company started: financing, the first few sales, moral support.  No different here.  Our neighbors really put fuel in our tank.  One came over and bought seven (for his extended family who was having dinner later but had no dessert planned).  In fact, it turned out that two party goers would buy about half of our inventory.

The Sweet Feeling of Momentum

Startups are a struggle, but there is nothing like the feeling of momentum.  And we had it as people stopped, bought, and enjoyed.  We sold about 22 of these things.  After a few discounts, commissions to the ten-year old and paying $5 back to mom/dad for COGs, our son netted about $10.   My wife and I had a great time, we hung out with neighbors and I think our son learned something.

And, of course, we saved a few ice cream cookie sandwiches left over for us to eat for dessert that night.  We enjoyed our day and our treat, and that turned out to be a great exit strategy.  

By now, I’ve been part of many dozens of product launches and it hasn’t been boring yet.  It is my pleasure to announce the public availability of Boxxet. Dan and I spent today smashing down a bunch of bugs today, talking with bloggers and press and generally making everything presentable.

You can read more about the launch and the product at the Boxxet blog and you can experience Boxxet yourself, may I suggest: The Amazing Race, Green Day, New York Yankees, The Office, Second Life, Supernatural or Ultimate Fighting.

So the race planning is behind us (product design), warmups are done (beta) and now the marathon has begun.  Thanks for watching.

I am a loyal reader of Brad Feld’s blog. He not only has thoughtful posts, but he does an incredible service to entrepreneurs with his Term Sheet series, where he explains many of the crazy terms that you can find in a Term Sheet.

Earlier today, he had a post titled When Does An Entrepreneur Need “Experienced Help”. Give it a read. I left the following comment:

From the wording of the question, I would have guessed that your friend has not had success working with entrepreneurs. The obvious clue was the judgmental “real smart ones that know when to bring [him in]“.

And his lack of success says to me that he has come into his COO/CFO roles with the wrong attitude. If I can rephrase the question as an entrepreneur with his similar wording, I may say this:

“I was interested in your thoughts on when experienced Series B executives realize they are part of an existing team and culture that needs to bring an additional perspective to the ones the entrepreneur and other executives have at the company. The real smart ones that understand know that they are bringing their experience to an existing table and are not the next great hope of the company.”

It is the very difficult job of the entrepreneur to create and the equally difficult job of the “experienced help” to come into a startup and have the entrepreneur and the rest of the team want to listen and follow. The “real smart” entrepreneurs do not roll over and the “real smart” experienced help do not expect a handover.

So how to avoid? Your advice to your friend is fine, but that may test the social interaction of the participants rather than their working style. While it does not always work, I try to set up a few business scenarios (from mundane to difficult) that we can discuss (say, how to launch a difficult product, how to turn around a difficult but loyal executive, the merits of a particular go-to-market strategy) and see how the discussion goes. Do we reach the same conclusion? Do we reach different conclusions respectfully? Does one person always give? Do we give build on top of each other or do we debate?

It is unlikely we will be friends, but we must become great business colleagues.

Bringing “professional” executives into a startup is the one of the most delicate stages of a startup’s development. I have not seen a consistently good best practice for this. If anyone else has, please share with the world.

For entrepeneurs out there, are you a leader or manager?

• Leaders point the way
• Managers decides the route
• Leaders start the fight
• Managers calm the nerves
• Leaders pump others up 
• Managers help others grow
• Leaders say yes
• Managers searches for the yes
• Leaders favors far-sightedness
• Managers favors near-sightedness
• Leaders creates work
• Managers complete work

Organizations need both; precious few of us can do both.  If you can’t do both, look for someone who can be your counterpart.

So far, naming the company was one of the hardest things we did.

I enjoy the process very much. I’ve done it before. I’ve read a pretty good book (Wordcraft, by Alex Frankel); I’ve thought hard about them.

For tech companies, the big problem is, of course, URL availability and it is an extreme limiting factor to naming. The naturally limited inventory and the squatters forces unnatural names. (If you are lucky and the URL for your preferred name is not taken, then it is likely that the trademark is open as well, but you can do a quick check on that).  Venture capitalist Fred Wilson has a post about domain name extensions that is worth reading.  Since my blog is named Seedround, I will disagree with his statement that a name is worth $25,000.

So what is the creative process for finding a name? Don’t really have one, sorry. This is one of those “lightning can strike anywhere” projects.

Dan and I named Milktruck while he was keeping me company while I was waiting for a train. I forgot how we can up with Biz360 (but that was a codename that stuck; or more accurately, nothing better was ever suggested). Boxxet was thought of late one night (while I was alone) after weeks and weeks going through hundreds of names. I had to force myself to walk away from the project several times just to regain energy.

There’s no magic for me; lots of ideas (some awful, some great but unavailable, some good); lots of research; then a bit of testing with your inner circle (after all, why share bizarre names with too many people?).

• Can they say it?
• Can they spell it?
• Are they going to, more likely than not, remember it?

Yes to all? Wow! Two of three? Take it.

Does it pass the ridiculous test? Then go. Of course, you can also not pass the ridiculous test and still do very well (see Yahoo and Google).

There will be people who love/hate/like/dislike/don’t care about your name. You will not get agreement; you should not bother to get agreement.

I happen to like names that are descriptive or provoke the images I would like the company’s users/clients to see:

• Milktruck: This was a “push” Web application. So Milktruck automatically brought you fresh stuff every day!
• Biz360: This was an analytic application that analyzed all the news that happened around your company and industry everyday. Biz360 gave you a 360 degree view of your business.
• Boxxet: The image of the “best-of” is reflected in a “box set,” thus the name Boxxet. People who do not like the name right away will often come back and tell me that they later changed their mind.

We went through a LOT of names before we hit Boxxet. Many were awful. Here are some (no snickering, please): Onrego, civicjam, thelotofus, LoveOrHateIt, TheWordFor, REcolon, InRegardTo, ThisIsSwell, RiffWire. I’ll leave it to you to figure them out (at one point or another, they all had some meaning to me).

You may ask: why not go through a naming firm for such an important branding move?  To that, I point to this article that I first saw on Guy Kawasaki’s blog.

When I first heard of Guy Kawasaki, I wasn’t sure about him.  I thought he was more style than substance.  But over the years, he has made me a fan.

The man has boundless energy and is THE definition of the Tech Evangelist.  He just started a new blog Let the Good Times Roll and, so far, he is amazingly proficient (I hope he is not setting too fast a pace with his postings).  I recommend entrepreneurs as well as tech marketers read him.   I also recommend his book, The Art of the Start.

Sometimes, I feel he goes a bit overboard with his rah-rah.  But he is always entertaining and full of insights.  He easily makes it on my reading list. I now count myself as a long-time admirer of Guy Kawasaki.