What I Wish I Knew Series: Hire Sales Early
As an early-stage tech founder and current CEO of Elastio, there's a whirlwind of experiences and, of course, a fair share of mistakes. But the great thing is that you get to learn from all of it. As I look back on the many lessons I’ve learned as a founder, one in particular stands out to me: it’s crucial to invest in sales from the get-go.
Why Sales is needed early?
In the early days of a company, the allure of building a perfect product is consuming; you want to pour resources into product development. And I agree, this is a crucial part of building a strong, competitive software business. However, looking back, I see how important it is to have a healthy balance between R&D resources and a sales team that is on the front lines every day understanding customers' needs firsthand.
There is so much value in having real-time feedback streaming into your product cycle—insights into use cases, deployment issues, and customer pain points upfront. This early interaction with customers not only accelerates product iteration but also fosters a deeper understanding of their needs, enabling companies to tailor our offerings more effectively.
Our current success is largely attributed to the establishment of a robust sales model—one centered around high-volume conversations, dozens of customer interactions each week and real-world feedback on what's working with our product and service and what can be better. By closely listening to our prospects and customers, we can swiftly iterate on messaging, positioning, and product features; ultimately prioritizing and optimizing development.
Why didn't we invest in Sales sooner?
When you are at a seed level of funding, you need to make efficient decisions on how to invest the cash. At that time, we were fixated on development, believing it to be the cornerstone of our success. In hindsight, shifting even a modest portion—say, 20%—from development to sales could have propelled us further, sooner.
It's clear to me that investing in a high-touch sales team early in the product life cycle, before general availability (GA), makes the product vision a reality sooner, accelerating revenue earlier.
Prioritize an Inside Sales leader
As you think about your first sales hire, you need to start with an Inside Sales Leader: a dynamic player/coach, with a knack for training and motivating a team, empathy for customers, and a relentless drive.
But building a solid sales engine requires more than just a leader; it demands a cohesive team. From Business Development Representatives (BDRs) to technical support, each member plays a vital role in understanding and supporting customer needs. When the team is in place, integrating sales with product development is paramount. Having the product and engineering team join sales calls provides invaluable insights and fosters a customer-centric approach to innovation. After all, understanding our customers is the cornerstone of our success.
While the allure of perfecting the product is enticing, the investment in sales (even a small team of 2-3) helps to propel a start-up forward. By embracing sales early on, companies not only gain a deeper understanding of our customers but also accelerate their journey toward revenue. To all the up-and-coming tech founders out there, remember to prioritize sales, listen to your customers, and never underestimate the power of human connection in the world of tech.