Sometimes, I hear founders complaining that the top two challenges they face are sales and fundraising. I’ve also come across this sentiment in surveys that include hundreds of founders. But honestly, this is so nonsense! Sales are at the very core of a business’s economic sense. How could a restaurant exist without making sales? You’ll probably say it should not exist. But then why should some other type of business (or more specifically a tech company) work like this?

And of course - if sales don’t work, investors won’t invest unless there are good reasons for it (e.g. business model, R&D heavy product, etc.). Showing early signs of success signals potential of more success in the future. Early signs of being unreasonable do the exact opposite.

How sales teams are naturally built

“We just need to hire sales people now” can be such a bad thing to hear from very early stage founders. Going out and hiring some sales reps won’t solve the issue. Founders are the ones who truly understand the product and customer pain points, which are essential to driving the sales strategy. Especially early on when there is no script and you have to be flexible & creative. When the process becomes repeatable and you start seeing consistent results, that’s when bringing in additional salespeople can help scale things. The founders can then set the example and establish the sales motions that others can follow. Once the team starts seeing consistent success with 2-3 sales reps, it's time to bring in a senior sales executive to lead the team effectively, but only if the foundation is strong.

Bringing in a senior leader too early could hinder flexibility and momentum, as they might focus on imposing structure rather than adapting to the startup's needs. Additionally, senior execs cost a lot and do not necessarily sell. They build teams that sell.

Industry know-how is so important for sales leaders

Working with a sales executive who has a stellar background but doesn’t understand the specific nuances of your industry can kill companies. I’ve seen this in the past. They might miss important market insights or fail to grasp the unique needs of your customers, leading to missed opportunities. This lack of understanding can cause costly delays as they try to get up to speed. Getting up to speed fast can happen, but they still need to be flexible and hungry to sell.

Sales cures all (incl. fundraising)

The foundation of any successful business is built on the ability to sell. Investors want to see signs of success, and consistent sales can provide that. If you add a great product and team, what else can you ask for? So before looking for outside funding, make sure your sales process is solid and repeatable, and don’t rush into hiring an executive team before you’re ready.