Doing sales isn’t typically one of the favorite things of most startup CEOs (and by extension, startup founding teams). Certainly they want sales (because sales = $$), but they don’t want to actually do the sales. This is a huge problem for startups.
Startup CEOs need to be very close to their prospects and customers
Startup CEOs need to understand why people are buying and why people aren’t buying. They need to understand the buying and decision-making processes.
Even technical startup CEOs or technical co-founders need to be actively involved in the sales process. Ultimately this is going to make them better founders. It’s also going to help with product development, and the communication within the startup.
Startup CEOs are the only salespeople you need
At least initially, the CEO and founding team are the salespeople. If you outsource sales (whether that’s through hiring or through a channel partner strategy) you can very quickly get into trouble. Setting targets is easy, but understanding why you’re hitting them, or more likely not hitting them, becomes almost impossible if you’re not doing the actual sales work.
Figure out sales first, then hire others to execute
Startup CEOs need to understand the sales process through-and-through so that they can, as quickly as possible, create a genuine sales strategy. Once a sales strategy is in place, you can hire others to execute that strategy and measure their success.
Most startup CEOs aren’t natural salespeople. It’s probably not a significant part of their work history. But if you can’t do sales for your own startup you’re going to end up relying too significantly on others for your startup’s overall success. You won’t be able to communicate appropriately with your Board of Directors, investors and employees on how things are going — because you won’t really know. And you won’t be able to communicate with your customers either; you won’t understand their needs, challenges, frustrations, etc. well enough to respond accurately, intelligently and quickly. Reports from salespeople aren’t enough. Startup CEOs need to “get their hands dirty” in sales.
Startup CEOs: Stay close to your prospects and customers
Don’t make the mistake of outsourcing sales to others while you’re busy doing a million other things. I know you’re up to your eyeballs in millions of decisions and running like a headless chicken, but make active sales participation a priority.
Ben, you make some good points. I second your emotion and say that early says are the building blocks of your business model–a founder/ceo can't raise money or build a business on the right assumptions unless he or she is selling.
And… the founder/ceo job is tied to sales: he/she will need to sell investors and recruit (sell) critical early team members, leverage relationship skills to manage vendors, partners and the board. And, with so many companies “figuring out their monetization models” I imagine investors need to believe the CEO knows (not thinks!) but knows how to get users/customers/members, etc. to pay and as a result will be central to the first handful of deals. Furthermore, as your company grows and ramps revenue, the CEO needs to be credible with customers as there are always issues and those should become opportunities to deepen the “partnership” with the customer–again sales. I didn’t realize my passion around this topic, but CEOs need operational and product skills, but the ability to sell, partner and create mutually-beneficial relationships is key at every stage.
Nice post!
the best advice I ever got was that 'sales is the heart of the business – always stay close to sales' – the CEO has to sell to everyone – potential investors, clients, employees, etc.
[...] See more here: Sales is important for Startup CEOs [...]
I am in the midst of starting a business and find what you are saying very truthful. Keeping customers close will not only give them a hightended sense of customer service, but may also give you valuable insight on what you doing right and wrong. I sell CNC Plasma Cutters at the moment and customer interaction is the name of the game.
Thanks for a great post, will read on a regular basis
Ben, you make some good points. I second your emotion and say that early says are the building blocks of your business model–a founder/ceo can't raise money or build a business on the right assumptions unless he or she is selling.
And… the founder/ceo job is tied to sales: he/she will need to sell investors and recruit (sell) critical early team members, leverage relationship skills to manage vendors, partners and the board. And, with so many companies “figuring out their monetization models†I imagine investors need to believe the CEO knows (not thinks!) but knows how to get users/customers/members, etc. to pay and as a result will be central to the first handful of deals. Furthermore, as your company grows and ramps revenue, the CEO needs to be credible with customers as there are always issues and those should become opportunities to deepen the “partnership†with the customer–again sales. I didn’t realize my passion around this topic, but CEOs need operational and product skills, but the ability to sell, partner and create mutually-beneficial relationships is key at every stage.
Nice post!
the best advice I ever got was that 'sales is the heart of the business – always stay close to sales' – the CEO has to sell to everyone – potential investors, clients, employees, etc.
What you said on your article is very true. You need the skills to improve your business marketing and managing. I am a businesswoman, I've traveled from Europe to USA to promote my International Air Ambulance services.
Startup CEOs Need To Do Sales? I actually think they need to lead the company – focusing on one aspect can be pretty hard to do, and might cause even the most talented CEOs not to look at the big picture
Outsourcing is really about the CEO's attention plus the time management. If he should just outsource the business without investing time supervising, training and setting off a project management system, how will the business help you? It's true that when you outsource, you free up your time to do other stuff but then leaving the business to your team shouldn't be the sentence. The CEO should be the guide at all times even if it takes little time to check on, still, he made the responsible effort to share his support to the team and to the business' success. As starting up, these should be their lessons.
I am in the midst of starting a business and find what you are saying very truthful. Keeping customers close will not only give them a hightended sense of customer service, but may also give you valuable insight on what you doing right and wrong. I sell CNC Plasma Cutters at the moment and customer interaction is the name of the game.
Thanks for a great post, will read on a regular basis
[...] Sales is important for Startup CEOs [...]
[...] Sales is important for Startup CEOs [...]
What you said on your article is very true. You need the skills to improve your business marketing and managing. I am a businesswoman, I've traveled from Europe to USA to promote my International Air Ambulance services.
Startup CEOs Need To Do Sales? I actually think they need to lead the company – focusing on one aspect can be pretty hard to do, and might cause even the most talented CEOs not to look at the big picture
Outsourcing is really about the CEO's attention plus the time management. If he should just outsource the business without investing time supervising, training and setting off a project management system, how will the business help you? It's true that when you outsource, you free up your time to do other stuff but then leaving the business to your team shouldn't be the sentence. The CEO should be the guide at all times even if it takes little time to check on, still, he made the responsible effort to share his support to the team and to the business' success. As starting up, these should be their lessons.
Promise: Thank you for stopping by and commenting. I like your point, “CEO needs to be credible with customers…”
CEOs are the leaders of the company, absolutely. And they do so by keeping an eye on the big picture and managing a lot of the details as well. It's not about over-focusing on one aspect of the business or another, but about making sure that sales remains a key focus. With many tech startups, sales is simply not the focus of the CEO.
Definitely agree that founders should be very close to their customers, but don't necessarily agree that they should personally do the selling. Assuming there is some lead time between startup creation and 1st sale (if there isn't then I ask – did you build anything of value?), you likely have time and possibly capital to add to your team. Founders are a key part of the sales process. And in a licensing (vs subscription) sales cycle, they normally need to go in front of the customer at some point. But I am not sure they should personally lead the whole cycle.
One final point: Selling is a key skill for founders (be it selling your product or selling your shares to investors, or selling your company to key hires).
I still believe if you can't / won't do the sales yourself as CEO (or member of the founding team) you're in trouble.
Hiring salespeople is incredibly hard; most of them talk-the-talk through an interview quite well, and most startup CEOs won't really know how to recruit for the sales role effectively. And no salesperson coming in will have the insight + passion to sell quickly. So now you've hired someone that will need 3-6 months to scale up. Meanwhile you could have been out closing deals.
What you said on your article is very true !!
Promise: Thank you for stopping by and commenting. I like your point, “CEO needs to be credible with customers…”
CEOs are the leaders of the company, absolutely. And they do so by keeping an eye on the big picture and managing a lot of the details as well. It's not about over-focusing on one aspect of the business or another, but about making sure that sales remains a key focus. With many tech startups, sales is simply not the focus of the CEO.
Definitely agree that founders should be very close to their customers, but don't necessarily agree that they should personally do the selling. Assuming there is some lead time between startup creation and 1st sale (if there isn't then I ask – did you build anything of value?), you likely have time and possibly capital to add to your team. Founders are a key part of the sales process. And in a licensing (vs subscription) sales cycle, they normally need to go in front of the customer at some point. But I am not sure they should personally lead the whole cycle.
One final point: Selling is a key skill for founders (be it selling your product or selling your shares to investors, or selling your company to key hires).
I still believe if you can't / won't do the sales yourself as CEO (or member of the founding team) you're in trouble.
Hiring salespeople is incredibly hard; most of them talk-the-talk through an interview quite well, and most startup CEOs won't really know how to recruit for the sales role effectively. And no salesperson coming in will have the insight + passion to sell quickly. So now you've hired someone that will need 3-6 months to scale up. Meanwhile you could have been out closing deals.
Agree, start up CEO's have to lead by example.
Agree, start up CEO's have to lead by example.
Ben, your post is yet another example of how hard entrepreneurs have to work in the beginning. I remember when I first ventured out on my own and I thought I would never get more than a couple of hours of sleep in a single night again – all because I was too buys trying to figure out the best way to sell, sell, sell.
The owner, founder, CEO, president (whatever) of a new company has to be willing to work harder, work longer and sell more than anyone else in the company. If the leader won't work hard at selling the company's product or service, then neither will anyone else..Great post. Thanks. Enjoyed it.
Ben, your post is yet another example of how hard entrepreneurs have to work in the beginning. I remember when I first ventured out on my own and I thought I would never get more than a couple of hours of sleep in a single night again – all because I was too buys trying to figure out the best way to sell, sell, sell.
The owner, founder, CEO, president (whatever) of a new company has to be willing to work harder, work longer and sell more than anyone else in the company. If the leader won't work hard at selling the company's product or service, then neither will anyone else..Great post. Thanks. Enjoyed it.
I have been runing my business for years and the sales is the most important part. The good point is you have to know how to run the system first so you can step away and let the system run the business.
I have been runing my business for years and the sales is the most important part. The good point is you have to know how to run the system first so you can step away and let the system run the business.
Ben I agree that early on the CEO should be the main sales force so they can figure out what strategies will and won't work. Without actually being on the front lines the CEO is relying on second hand information. Who has a bigger stake in the success of the company, a hired sales rep or the CEO?
Roy Paeth
Chicago First Time Home Buyer
Ben I agree that early on the CEO should be the main sales force so they can figure out what strategies will and won't work. Without actually being on the front lines the CEO is relying on second hand information. Who has a bigger stake in the success of the company, a hired sales rep or the CEO?
Roy Paeth
Chicago First Time Home Buyer
Agreed. I think it's important for CEOs to work on the sales system, and figure out how to optimize that as best they can, even if they're not experienced salespeople — then pull yourself out of the equation by bringing on others to scale.
Agreed. I think it's important for CEOs to work on the sales system, and figure out how to optimize that as best they can, even if they're not experienced salespeople — then pull yourself out of the equation by bringing on others to scale.
Ben, this is key to a start up having success. If the CEO doesn't wan't to do the nitty gritty, then a start-up will be doomed to failure (or ultimately a large and unnecessary waste of resources,
Ben, this is key to a start up having success. If the CEO doesn't wan't to do the nitty gritty, then a start-up will be doomed to failure (or ultimately a large and unnecessary waste of resources,
Most of the time Start up CEO have a company which has not more that 2 to 3 members and in this case many of the people wear different hat in order to get hold of the business. And it is always better to know you business before relying on an outsider.
Most of the time Start up CEO have a company which has not more that 2 to 3 members and in this case many of the people wear different hat in order to get hold of the business. And it is always better to know you business before relying on an outsider.
Hey Sales and Selling are vitally important! If you can't sell yourself, your idea, your product or service, then you don't have a business! Because at the end of the day, someone has to sell something to somebody! If you can't sell, then you don't have a business. That is business! It's the selling of goods and services for the exchange of money! Start-up CEOs can't outsource this. It is up to her to do it and be successful and create the company unique sales system.
Hey Sales and Selling are vitally important! If you can't sell yourself, your idea, your product or service, then you don't have a business! Because at the end of the day, someone has to sell something to somebody! If you can't sell, then you don't have a business. That is business! It's the selling of goods and services for the exchange of money! Start-up CEOs can't outsource this. It is up to her to do it and be successful and create the company unique sales system.
Good points, especially about what people are good at versus what they need to be able to do. Personally my business partner and I struggle with the actual sales components, but have been helped immensely by our social media presence which seems to break down a few of the doors for us.
Good points, especially about what people are good at versus what they need to be able to do. Personally my business partner and I struggle with the actual sales components, but have been helped immensely by our social media presence which seems to break down a few of the doors for us.
Good points, especially about what people are good at versus what they need to be able to do. Personally my business partner and I struggle with the actual sales components, but have been helped immensely by our social media presence which seems to break down a few of the doors for us.
[...] your business. And they’re not the right place to validate a sales strategy either. You should have a fairly well-oiled machine in terms of sales and marketing before you build out a channel strategy. That way you can provide a lot more cohesive [...]
[...] mentioned before that startup CEOs need to do sales. At the same time I’ve also recommended that startups get a ton of help for non-core [...]