Sales for startups is a concept that originated in the United Kingdom. It has recently gained momentum here as well. Sales for startups is a concept that requires entrepreneurs to think innovatively about how to drive sales for their companies from scratch. The primary goal is to avoid being in business forever. Therefore, entrepreneurs must seek a business coach who has had success within the startup space and understand the nuances of business development.
Sales for startups is a concept designed for the early-stage companies that need to raise seed capital. This is a type of funded launch that allows startups to build a core team of talented sales professionals on lean products with minimal or no product development costs.
Sales for startups has helped many companies quickly scale their sales operations. VDC helped them gain visibility in the marketplace by leveraging their expertise, gain trust in their approach and gain traction on their sales force. Sales for startups is a concept that has been implemented successfully by pre-seed to mid-stage companies looking to leverage the power of the internet and customer base to launch their company.
Sales for startups can also be a great idea when a company is large and requires new ways to generate revenue. For example, a large pharmaceutical company could outsource sales for startups to an agency that specializes in medical device sales. The agency would focus on creating a strong brand reputation, developing relationships with physicians and doctors, getting the product out to the marketplace, training the sales team and generating new sales opportunities. The agency would take a one-time fee for the rights to market the product.
Sales for startups can also be a good idea when a startup is small and needs a clearer understanding of its product, market space, business plan and strategy. Companies with less than £10 million should consider working with an outside consulting firm that has the resources to execute a comprehensive sales strategy. Outside consultants can help the company gain clarity on its mission and future business model. They can also help develop a marketing plan that will build the company’s brand image, gain credibility with key stakeholders and drive new revenue streams.
Sales for startups can be a costly proposition. It requires hiring sales personnel, purchasing office space, paying for advertising and paying for supplier licenses. In addition to these costs, it requires an investment in staff training, benefits packages for existing employees and setting up a distribution system for distributing the product. A good sales strategy will require a comprehensive analysis of your organization’s needs, market position and competitive advantages.
Many companies look to outsourcing as a sales solution for startups. While outsourcing may have certain advantages such as lower costs and greater speed, it is important to remember that no two organizations are alike. Outsourcing will only work for startups, if they have the right skills, the right mindset and a business model that works. For example, it would be impossible to replace sales professionals with an outsourcing company that provides sales training or if they simply passed on the cost savings from using external talent. It is important to consider every aspect of the organization before choosing to outsource.
Sales for startups must have a sound business plan that presents clear estimated monthly and annual goals for revenue. This plan should have measurable goals with a plan to reach them. The business plan is critical for a start-up company that expects to spend money on salaries, rent, equipment and supplies. The business plan should be reviewed by an independent consultant and, if necessary, revised. A strong support system for outsourced sales professionals is imperative for a start-up business since the sales professionals will likely become salespeople once they start working for the organization.
Outsourcing will not work for startups if their sales process does not provide sufficient results in terms of revenue. The sales team needs to clearly understand the value of every customer contact made during the startup period. The sales process also needs to have a standardized format that ensures a higher level of professionalism.
The sales process, including the hiring process, should be formalized and thoroughly documented. If this happens, an organization can expect to enjoy significant cost savings and increase the efficiency of its revenue stream.
My advice is to find a business coach and startups coach who can support your growth activities as this is an element of Lean startup that can be performed across different organisational types.