Many start-ups feel that they have to hire sales people early in the game not realizing how this will likely have a negative impact on the progress of the company.
Most start-ups rightly rely on the CEO to be the top, and only, sales person in the early days of a company's existence.
The CEO normally understands the product and has the passion to convey the message to potential customers.
The CEO is also the most affordable option for most start-ups.
CEO's are multi-tasking, making sales calls on thoroughly qualified and targeted leads.
An equally important consideration is the fact that early stage companies are often still figuring out what the proper positioning for their products/services should be.
They are frequently still trying to determine which segment of their target market they should be focused on initially, and are defining the minimal feature set that will deliver early sales.
Focus is very important as start-ups typically don't have a lot of time to get some initial revenue coming in the door.
Putting someone between potential customers and the CEO has the effect of cutting him off from the valuable feedback that will be obtained from early stage customers, information that will define both product development as well as marketing and sales strategies.
Start-ups typically don't have a lot of money on hand and can't afford to waste it by bringing in expensive and, initially, non-productive resources.
"But they're professionals" you say.
That may be but they're not familiar with your product.
It will take some time for them to come to the same level of knowledge as your CEO.
High tech start-ups are also subject to a bit of a dichotomy.
They really need an experienced and proven salesperson that can understand their complex product very quickly and can work with the company to develop a winning strategy within the market segment that has been selected.
This type of person is not cheap.
You're looking at target cash of six figures here, and the first number, depending on your industry and location, is not (1).
These types of people also need to be convinced that they have a good chance at making money with that particular start up.
Trying to attract them to a start up with an unproven product will be a difficult task, if not practically impossible.
But you say, "I can get someone really cheap.
" I'll bet you can, but they won't meet the criterion that I just described.
Commission only? Not a chance with an experienced sales person.
Outsourcing? Same problem isn't it? The caliber of the person that you need is not likely to be found in this environment.
So when is the right time? That will be the subject of my next article.