A challenging IPO  market has many tech companies pushing out their funding  horizon and getting even more focused on the challenge of maintaining momentum while conserving resources. It’s becoming all about building a sustainable business with the funds you have.

 An article posted a while back by a well-known VC  ( http://goinglongblog.com/are-you-ipo-ready/ )   spoke to the then robust market and highlighted three underappreciatedfactors whichgreatly influence the degree of success technology companies have leading up to and beyond an IPO. These factors are also critical in today’s market for companies focused on the balance of maintaining momentum and maximizing limited resources. A well performing Channel Program contributes to each.

 Are you addressing a market large enough market to support 3x growth?

Channel and Alliance Programs are all about access to new vertical markets, new accounts and new geographies. The sooner companies can establish a Partner Strategy and Program that opens up new markets, the more effectively they can scale it to meet their growth goals. It’s similar to establishing a repeatable sales model for the direct side of your business. The sooner you can do it, the sooner you can start to scale

Do you have a single point of failure?

Expanding your reach into new areas though new partners spreads out your market risk by increasing the diversity of your pipeline. An additional and underappreciated benefit of your Channel Program is how the relationships your Resellers, ISV’s MSP’s and Alliance Partners have with their clients can mitigate your company’s risk from competitors, market sector downturns, or product delays.

How predictable is your revenue forecast?

  Missing a revenue forecast takes on a new meaning for private companies balancing growth and burn rates. The market coverage provided by Partners can provide more data points and broader insights into your revenue forecasts, especially if you’ve built meaningful dashboards and collaborative relationships early on.

Well timed Channel development and efficient execution provides executives another tool to manage through a challenging environment.  Companies that build Channels as a well-integrated portion of their overall growth plans can scale revenue faster and build a stronger and more affordable foundation to maintain the momentum they’ve established. You’ve taken some risk out of your business and increased the odds of success when you’re ready to go back to the public or private investors.

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