From Founder-Led Sales to Your First Sales Team. How to Master The Transition.
Hey Friends,
I have worked with 40+ founder-led startups, and today, I want to discuss their involvement with the sales team.
In the early days of any startup, the Founder often wears multiple hats, one of which is leading the sales team.
However, as the startup grows, continuing this approach becomes unsustainable.
That is when you should consider transitioning sales from the Founder to a dedicated sales team.
I have worked with many founders and have seen the good and the bad of this transition.
I'm going to share with you the 6 crucial steps every founder should take to do this successfully:
Understand the Right Time
Transitioning doesn't mean waiting until you're overwhelmed or can't keep up.
Signs you're ready include:
You are spending 30% of your time on sales-related activities.
You have 10+ paid customers.
You have crossed >100K bookings / closed won yourself.
More generally, you may also face a moment of chaos.
What has worked so far is not working.
Processes are becoming messy.
Deals are becoming too close with lower conversions and more time.
That might be an excellent sign to realise you need to consider a transition.
Hiring Your First (Fractional) Leader
You will need somebody who can take the sales team off your shoulders. You will also need someone who will transition you.
If you are <5M ARR mark, a fractional sales leader might work well for you. (am I biased?).
They must refine or build the sales cycle, CRM and the overall sales process, including your inbound and outbound.
Start working on the hiring and onboarding structure for your future sales team.
Finally, consider hiring the first team members.
Hiring Your Sales Team
It sounds harsh and unfair for the job market, but start by hiring people you know or people with strong referrals.
Also, be sure to look out for soft skills first.
Your founding team members should be adaptable, eager to learn, and, most importantly, curious and accountable.
Early hires are crucial; they set the tone for the rest of the sales team.
You may start from an SDR first, who can then transition to an AE role.
If you hire an SDR, you must keep the demo, proposal and closing.
If you find an AE, you want a complete cycle (prospecting to closing) resource.
Transitioning Relationships
One of the trickiest parts of the transition is handing over customer relationships.
Start by introducing your sales team members as trusted colleagues handling day-to-day sales activities.
Involve them in meetings and calls, gradually shifting the customer's primary contact point from you to them.
Ensure you communicate this transition to your customers, highlighting the benefits it brings them, such as more dedicated attention.
Maintaining Continuity
Continuity is critical to retaining customer trust and satisfaction.
This means ensuring the sales process remains consistent and that the quality of interaction does not drop.
The founders should attend weekly sales meetings and be informed async through Slack.
As a founder, you should continue selling to large enterprises and staying informed about the KPIs and conversions.
Measure and Adjust
Finally, transitioning is not a set-it-and-forget-it process.
Regularly measure your sales team's performance against set KPIs and be ready to adjust your strategies.
For example:
Deals Created / month
Deals Won / month
Lost / month with reasons
Conversions
This might involve revisiting your training programs, refining your sales process, or revising your product offerings based on new sales insights.
Summary
The transition from founder-led sales to a dedicated sales team is a significant milestone for any startup.
Unfortunately, most founders make the transition too early or too late.
Finding the right time and managing the transition is crucial to scale your company.
Also, finding the right people to help you transition will help.
Ensure you do it right, and your company's growth will be unlocked.
Thanks for reading this far. See you next week!
