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Three Key Business Lessons From The Founder of a Big Data

Security Company

By MacLane Wilkison, Co-Founder of ZeroDB

When startups mix with corporations we see an oil-and-water effect. There’s often a gap in work
practices, organizational structure and managerial outlook, not to mention the fundamental
differences regarding the appetite for risk and experimentation.

For companies selling to financial services, however, it’s even tougher. While startups are
enthusiastic and nimble, established financial institutions are understandably conservative by
nature. Large organizations have correspondingly large responsibilities—to their employees,
management, stakeholders, customers, and regulators. It takes time for them to evaluate and
sign off on the services that startups hope to supply—especially when it comes to matters of
data security.

As such, it’s crucial that startups selling to financial institutions are prepared for this reality from
day one. Here are three lessons I’ve learned founding a big data security startup and selling to
large enterprises.

1. Expect delays, talk to customers, and be transparent

Focusing on that one “killer” deal is probably a big mistake. Large contracts need approval from
multiple departments in the same organization—and that means undergoing security reviews,
talking to legal, negotiating with procurement, and securing a sponsor from the relevant
business unit, all of which have the potential to turn you down.

Enterprises tend to take their time when it comes to making decisions; startups should be
prepared for long sales cycles that can range from three to 18 months. To appropriate John
Maynard Keynes’ famous quote; the enterprise can stay undecided longer than you can stay
solvent.

So what can you do to hasten the process and ensure success?

When you are establishing yourself in any market, it is extremely important to nail your problem
statement and value proposition. The way to do that is by spending lots and lots of time talking
to your customers. If you think you’re talking to a lot of them, times that amount by ten, and
you’re getting close.

87 Cyber Warnings E-Magazine October 2016 Edition
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