If you are going to be the founder of your startup, it is critical that you learn sales. It is a skill you must have as a founder. Sales people are independent contractors and they can be hard to manage. They can also make a lot of money. They are a part of your team. You have to be able to lay out the vision for your company and have the knowledge of how to convince people that they want what you are selling.
Sales is often thought of as the dirty job, but it’s every bit as important as the other elements of a business. Without a sustainable revenue stream, you won’t get far. You should be prepared to conduct sales activities in your startup from day one, including cold calling, emailing, and inbound leads.
Entrepreneurs often get in their own way when it comes to sales. They’re afraid of making the first call or they stop themselves from following up because they’re too busy. Or they think that since their product is great and solves a problem, it will sell itself.
Learn about how to dispell these myths and many others from Asia Gladden and figure out what you should really be focused on instead.
3. Topics
So, you think you're ready
to hire salespeople?
FOUNDER SALES
Why your first salesperson
should you!
Deciding on the Right
Methodology
PLAN
How you sell is as important as
what you're selling.
Whats working?
What isnt?
MEASURE
KPIs and measurable goals and
metrics.
4. YOUR BUSINESS ISN'T GOING TO GROW ON IT'S OWN
“Startups take off because the founders make them take off.
There may be a handful that just grew by themselves, but
usually it takes some sort of push to get them going. A good
metaphor would be the cranks that car engines had before
they got electric starters. Once the engine was going, it
would keep going, but there was a separate and laborious
process to get it going.”
PAUL GRAHAM
6. YOUR FIRST SALES
PERSON SHOULD BE YOU
NO ONE KNOWS YOUR BUSINESS
AND PRODUCT LIKE YOU DO
Scaling too quickly can be as harmful as not scaling at
all. And how can you prepare a sales team if you've
never gone through the sales process or handled an
objection?
7. Many fonders believe that bringing in sales reps early in the
process to start closing deals and getting customers is the
quickest way to grow a profitable business.
As a result, many startups rush to build a sales team, which
can be a costly mistake.
YOU'LL KNOW THE RIGHT TIME TO
HIRE YOUR FIRST SALESPERSON.
MYTH
#1
8. TAKE TIME TO
GET THIS RIGHT
$97,690
A BAD SALES HIRE CAN BE A PRETTY COSTLY EXPENSE
CONSIDER ENGAGING A CONSULTANT
9. MYTH #2
Some of the best salespeople are introverts
because introverts tend to be better listeners.
And founders sales isn't a numbers game. The best
insights on how to grow your business comes from
your first customers. So you need to be as close to
those customers as possible.
I HAVE TO BE AN
EXTROVERTED COLD CALLING
MACHINE TO SELL MY APP.
10. Invaluable insights
into your market
Ideas for
enhancements and
improvements
Metrics that truly
matter for your
busienss
A better
understanding of
your customers
Tried and tested
sales plan when
you do hire
BENEFITS OF FOUNDERS SALES
11. GETTING
STARTED
LEVERAGE YOUR NETWORK
Friends and acquaintances
Co-Workers
Past employers
Alumni
ALWAYS ask for introductions
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12. SALES
METHODOLGY
VS. SALES PROCESS
A sales methodology is a set of guiding
principles for how to act within and between
sales stages, whereas a sales process is a
specific map for how to perform a task.
13. METHODOLOGIES
A full end-to-end
web experience in
which customers
educate themselves
and make their
purchase online.
DIY SELF
SERVICE
Helping customers in
purchasing the
solution they chose
for themselves.
These customers are
usually in a hurry and
ready to buy.
TRANSACTIONAL
SELLING
Customers are aware
of their need and
want sales to
address it with
specific products and
services. Buying
happens within a few
days to a few weeks.
SOLUTION
SELLING
The customer does
not fully comprehend
the issue. Sales must
diagnose the
customer's situation.
Sales can take
anywhere from 6 to
18 months.
CONSULTATIVE
SELLING
Sales identify clients
who have a problem
before the client is
aware of it. They
compel action. Best
used for innovative
solutions. Can take
anywhere from 3 to
9 months.
PROVOCATIVE
SELLING
14. BY HOW YOUR BUYERS BUY
HOW YOU SELL IS DEFINED
Prospect MQL SQL COMMIT MMR
Potential Buyer Marketing Qualified Lead Sales Qualified Lead Ready to Buy Monthly Recurring Revenue
OH NO!
I have a
problem
AWESOME!
I found some
solutions
WHOA!
This is the
solution
THIS APP IS
PERFECT!
It works just
like you said
(DIY) Self Service
Transactional Selling
Solution Based Selling
Consultative Selling
Provocative Selling
Buyers Journey Seller Assisted
15. DIY Solution Selling Provocative Selling
Transactional Consultive Selling
The market will drive the
majority of your pipeline.
Users have to see an
immediate value in your
product.
Faster sales cycle and
growth but HEAVY
marketing investment in
defining and refining the
customer journey.
Innovative solutions that
address a C-Level issue
(think ERP)
ACV around $250K
6-9 month sales cycle
with one or two deals per
month per salesperson
Platform-like solutions to
a number of decision-
makers.
ACV at around $20-100K
6-18 months sales cycle
with 1-3 closes per
quarter per salesperson.
Medium volume, high
velocity, inbound sales.
Solution is a fit when ACV
is about $5000
30-day sales cycle with
each sales rep closing 5-
10 deals per month
Best in high-volume, high
velocity, low-cost,
inbound sales.
ACV (average contract
value) is less than $1000
The sales cycle is
typically 30 days with
each salesperson is
selling more than 20
deals per month
CHOOSING YOUR METHOD
16. Nailing down the sales process...
Educate
TRANSACTIONAL
Identify pain & fit
PROVOCATIVE
Is it a fit?
CONSULTATIVE
Pain
SOLUTION
Assist
Commit Educate on solution
Assist selection
Commit
Educate on problem/solution
Assist selection
Commit
Provoke
Assist selection
Commit
Is it a fit? Is there a pain? Demonstrate the problem
Inbound Selling
SNAP
Recommended
GAP
SPIN
Customer-Centric Selling
Recommended
Sandler
Miller Heiman
MEDDPIC
Recommended
Challenger
Recommended
18. SALES PRODUCTIVITY
High-performing sellers spend 65% of their time
selling and 35% on non-sales activities.
LEAD RESPONSE TIME
How long it takes to respond to a lead creates a
21x drop in qualification. 5 minutes is optimal.
19. OPPORTUNITY WIN RATE
Tracking deals sold and when in the funnel they close
will help you tweak your marketing and process.
AVERAGE DEAL SIZE
Deals coming in below average? Maybe your app
and your target market aren't in agreement.
20. You have a revenue target of $24k a month
If your average deal size is $3k, that means you need to
close 10 deals a month
If your win rate is typically 25%, you need to source or be
sent 32 opportunities a month
TRACKING METRICS GIVES YOU THE
BIG PICTURE...
HOW
IT
FITS
TOGETHER
