Strategizing the Sales Hiring Timing
In the initial stages of a startup, it is typical for the founder or co-founder to be responsible for sales. Though tedious, this period allows founders to develop a deep understanding of their product and how to connect with their target audience.
During the founder-driven sales stage, entrepreneurs should create a sales playbook, which will eventually guide the sales team. This document should outline the target audience, unique selling propositions, and sales methodologies. The goal of the first playbook is to maintain consistency as the team grows.
This early hands-on involvement allows founders to make informed decisions when hiring salespeople later in the growth process. Instead of rushing through this organic sales period, founders should take advantage of the opportunity to get a feel for this unique role.
Crafting the Sales Job Description
As the startup grows, expanding the sales team will eventually become necessary. The most important part of this hiring strategy stage is identifying the roles you need to fulfill - such as sales representatives, account managers, and business development professionals - and the skills required for each position.
In general, job postings need:
- A job summary
- Responsibilities and duties
- Qualifications and skills
- Salary range and benefits
Indeed has specific examples of salesperson job postings, which often include a mix of both hard and soft skills.
By creating a robust sales playbook and engaging in founder-driven sales early on, entrepreneurs can create deliberate job postings to attract the perfect candidate.
Determining Salesperson Candidate Requirements
Let's take a closer look at identifying what you want from a candidate. Knowing your salesperson's requirements will streamline the process as you receive applications and begin early interviews.
Consider factors such as:
- Sales experience, ideally with a similar product or industry
- A proven track record of meeting sales targets
- Demonstrated knowledge of sales techniques
- Experience with startups or small businesses
- Soft skills like effective communication, relationship-building skills, resilience, and adaptability
Additionally, because startups often have smaller teams, your future salesperson will likely have more responsibilities than in a larger company. This means the ideal candidate should be comfortable taking on multiple roles, including sales, marketing, and customer support. They should also be able to balance the demands of these different tasks while maintaining their focus on establishing and growing sales.
Finally, as the startup grows, the salesperson may have the opportunity to take on leadership roles within the sales team. It is advantageous for the candidate to have leadership experience or demonstrate the potential to develop into a successful leader. This will ensure that as the team grows, an experienced and capable individual is already in place to manage and mentor new hires.
However, keep in mind that no one will check every single box. It's always a good idea to rank these qualifications by priority and remain open-minded while selecting your final candidates. Focus on finding someone who can contribute to the company's overall growth - whatever that means to your unique organization.
Where to Find Potential Salespeople
Several resources and strategies can help you discover potential salespeople for your company.
One of the most effective approaches is to leverage one's professional network. This includes reaching out to colleagues, former coworkers, and acquaintances within the industry to ask for recommendations or referrals. It is not uncommon for someone within a person's network to know or have worked with a sales professional who would be ideal for the position.
LinkedIn is another valuable tool in searching for potential sales candidates. A startup founder can use the platform to search for salespeople within their field or with relevant experience. The advanced search feature allows users to filter results by location, industry, and other criteria. LinkedIn groups focused on sales professionals in specific sectors can also source potential candidates.
Numerous job boards also cater to specific industries and job types. Some popular job boards for sales positions include AngelList (specifically for startups), SalesTrax, and SalesHeads. By posting a job listing on these platforms, startups can attract sales professionals actively looking for new opportunities.
Another option is to start an employee referral program within the company. Current employees may know qualified sales professionals within their networks, so offering incentives for successful referrals can motivate employees to participate in the search. This can effectively uncover candidates that align with the company culture.
Lastly, for B2B startups, attending industry events, trade shows, and conferences can connect founders and sales professionals with relevant industry experience. These also serve as an opportunity to assess a candidate's abilities up front.
Using a combination of professional networks, LinkedIn, job boards, referrals, and attending industry events will increase the chances of finding a skilled salesperson who aligns with a startup's needs and culture.
Screening and Interviewing Salesperson Candidates
Screening and interviewing candidates can be challenging, so let's explore recommended methods to help you narrow your search.
By this point, you've hopefully completed the first step of a good interview process: creating a comprehensive job listing with an accurate overview of the role and responsibilities.
Next is pre-screening. This is where the startup evaluates a candidate's skills, experience, and qualifications through resume reviews, online assessments, and initial phone interviews. This step ensures that only qualified individuals proceed to the in-person or video interview stage, saving time and resources.
You can then proceed to the interview stage, which is your chance to assess a candidate's sales aptitude, communication skills, and problem-solving abilities - usually over the course of a few interviews. Some key questions to ask might include:
- How do you manage your sales pipeline?
- How do you handle objections?
- Describe a situation where you closed a difficult deal.
CEO involvement in the interview process can be helpful, as it underscores the importance of the sales role within the organization. The CEO can provide the candidate with insights into the company culture and vision, evaluate the candidate's alignment with the startup's values, and ultimately contribute to the decision-making process.
After the interviews, the startup should conduct thorough reference checks for the top candidates. Reach out to their former employers, colleagues, or clients to gather input on their performance, work habits, and overall suitability for your startup's needs.
By organizing an effective interview process, asking the right questions, and involving key decision-makers, startups can establish a sales team that drives the organization's growth and success.
Setting Up Compensation and Commission Structures
A comprehensive compensation and commission structure can aid in attracting talented sales reps and motivating them to perform at their best. This step should be completed by the time you send out official offers, as it can determine whether or not a candidate accepts the role.
Begin by considering the base salary for your sales reps. This should be competitive for your industry and geography and reflect the level of experience and skills possessed by potential candidates. Set a fair base salary that acknowledges the sales experience and proficiency required to successfully sell your products or services.
Next, design a commission structure tailored to your startup's product/services and salesbook. There are several ways to approach this, but they often involve a percentage of each sale or a fixed amount per sale. As the sales cycle length varies across industries, it's essential to tailor the commission structure to match the specific characteristics of your sector.
To create an effective commission system, consider taking the following steps:
- Determine the performance metrics: Clearly define the goals and targets for your sales reps. Such metrics include the number of deals closed, new customer acquisitions, or revenue generated.
- Establish thresholds and tiers: Create different levels of commission percentages based on performance. This can help incentivize your sales team to strive for higher results to secure higher commission rates.
- Align commissions with company goals: Ensure that commissions reward sales reps for outcomes that contribute to the overall success of your startup. For example, prioritize new business acquisition or customer retention.
- Regularly review and adjust: Continuously evaluate and adjust your commission structure based on your company's growth, market changes, or your sales team's performance.
By following these steps, your startup will be well-equipped to attract top talent, retain your team, and incentivize rapid growth.
Onboarding and Training Salespeople
A well-designed training program will help new sales reps become familiar with the company culture, sales strategy, and their roles on the team.
The first onboarding phase should involve a standardized process that lasts a few months to a year, encompassing company values, goals, and team expectations. This is where your sales playbook will help solidify customer profiles, sales tools, messaging, and sales techniques you expect your salesperson to employ. You should also provide a comprehensive sales training manual to help new hires get the lay of the land.
As the salesperson becomes familiar with the company and team, begin conducting role-specific training. This includes mentorship sessions, product knowledge seminars, and practical exercises to refine their selling skills. Regular coaching during this initial period will create a culture of constant improvement. The goal is to foster an environment where salespeople can learn, grow, and excel.
Thoughtful onboarding, ongoing training, and engaging mentorship during a candidate's early days will ensure sales success - both for the individual and the business as a whole.
Measuring the Success of Your Sales Hires
By measuring your sales hires' performance, you can continually optimize your sales strategy to achieve better results.
One key indicator of a successful sales hire is their ability to contribute to the company's revenue growth. As sales reps close deals, they should bring in a consistent revenue stream to help your startup grow. Monitoring their performance and comparing it against your revenue targets can provide valuable insights into their contribution to your overall growth.
Another factor to consider is their performance within the sales cycle. Assess your sales hires' ability to move potential clients through each stage of the cycle, from lead generation to closing deals. A successful sales hire will show a strong understanding of the cycle and be able to maneuver it efficiently, which can ultimately lead to increased sales and success for your company.
In addition, evaluate your sales hires' abilities to adapt and implement new sales strategies. A high-performing sales rep should be able to understand your startup's evolving goals and sales objectives and then effectively execute that new strategy with clients. A key indicator here is how they receive and implement feedback.
Various key performance indicators (KPIs) - such as the number of deals closed, average deal size, and time spent on each stage of the sales cycle - can track progress across all these areas. And by collecting and analyzing this data, you can establish benchmarks and make informed decisions on how to continually evolve your sales team.
Measuring each person's impact on revenue, sales cycle performance, and strategy implementation can optimize your sales team for continuous growth, ultimately contributing to the prosperity of your startup.
