Listen Closely
Tuesday, December 29th, 2009We’ve worked on a couple of software evaluation projects this year – and have had to wrestle with all 4 clients on this one topic: Don’t ask questions to software vendors if you don’t know what you are going to do with the answer.
For example, a couple of my clients were requesting 5 (five!) years of financial statements. My questions to them: What are you looking for – low debt, liquidity, earnings - what? What constitutes a healthy financial statement? I get a lot of blank stares, and at times, anger. If you had to focus on one thing in the evaluation of a software company (not the product, the company)…my recommendation would be to look at the health and breadth of their prospect pipeline. More on this another day.