The Ultimate Sales Playbook for Tech Founders

When tech founders embark on the entrepreneurial journey, they often find themselves struggling with sales—a skill that's fundamentally different from building a product. This is where many tech founders fall short. Richard Harris, founder of Harris Consulting Group, shared key insights on why tech founders often fail in sales and how leaders can better approach hiring, developing, and managing sales teams.

1. Why Most Tech Founders Fail in Sales

Tech founders often struggle in sales because they set unrealistic expectations for their teams and processes. As Richard Harris points out in the podcast, "Founders often expect things to move much faster than they realistically can." This impatience leads to pressure on sales teams to deliver quick results, despite the fact that building relationships and closing deals takes time.

Another key issue is that founders lean heavily on their title and deep knowledge of the product. As Harris explains, "Founders use the CEO or founder title to get meetings and can overcommit on product features because they have the authority to make promises sales reps can’t." This can create friction when the sales team, lacking the same level of influence or inside knowledge, cannot meet the expectations set by the founder.

Solution:

• Let Go of Unrealistic Expectations: Founders need to understand that sales take time and shouldn’t expect immediate results. Align sales goals with realistic timelines and avoid creating undue pressure.
• Empower Your Sales Team with Essential Information: Rather than overcommitting, collaborate closely with your sales team to ensure they have access to the right information and tools for success. Equip your sales reps with comprehensive product knowledge, sharing insights and details that you possess. Additionally, keep them informed about upcoming product launches and developments in the pipeline, so they can clearly communicate these updates to prospects. Empowering your sales team with this knowledge enables them to sell the product truthfully and effectively, without being overshadowed by the founder's unique position.

2. Why the Average Tenure of a VP of Sales is Only 16 Months

Another major challenge founders face is hiring and retaining senior sales leaders. According to Harris, "The average tenure of a VP of Sales is just 16 months." Why? Many times, founders and leadership teams set unrealistic expectations, fueled by pressure from investors or a rapid growth mindset.

The misconception is that with the right sales VP, growth will happen in a matter of months. But, as Harris notes, "It takes at least 18 months to build a successful sales channel program, but most companies want to see results in six."

Solution:

• Set Realistic Expectations: It’s crucial to align sales targets with the reality of the market and sales cycle timelines. Overambitious goals only lead to burnout and quick turnover.
• Give Your Sales Teams Time: Sales isn’t an instant success—teams need time to build relationships, understand customer pain points, and create momentum.

3. Tips for Hiring in Sales: How to Hire Faster & Cheaper

Hiring salespeople can often be costly and take up a lot of time, but there’s a smarter way to approach it. Instead of hiring one sales rep at a time, consider bringing on two or three at once. Here’s why:

When you hire just one person, you’re committing to their full salary for a year. If they don’t turn out to be a good fit, you’ve already spent months on their training, onboarding, and salary, and you’ll have to start the hiring process all over again, losing both time and money.

Instead, by hiring two people at once, you’re not committing to both for the full year. You’re essentially committing to two full salaries over six months. During that time, you can see who’s performing better and keep the stronger hire. If one doesn’t work out, you won’t have wasted an entire year’s salary on a bad hire, and you still have someone productive to continue with. This approach saves time, money, and reduces the risk of hiring the wrong person.

Additionally, exploring new talent sources can be a game changer. Don’t limit your search to traditional channels hiring. For example, ZoomInfo successfully scaled their SDR team quickly and affordably by hiring part-time college students, providing fresh talent at a lower cost.

4. Most Overlooked Competency in Sales Reps

When hiring sales reps, companies often focus on qualities like being competitive or aggressive, but they tend to overlook two key skills: listening and willingness to learn. Listening is crucial because sometimes it’s more important to hear what the prospect is saying rather than rushing to pitch a solution. A salesperson who listens well can understand the customer’s true needs and build stronger relationships, making it easier to close deals.

In addition, the willingness to learn is often underrated. Sales reps need to be coachable and open to new strategies, tools, and feedback. Those who are eager to learn will improve faster and adapt better to changing environments, which is critical for success in a fast-moving field like sales.

5. The Importance of Hiring Quick Learners in the Age of AI

In today’s world, new AI tools are released every four weeks, not months. This means that hiring salespeople who can quickly learn and adapt to these tools is more important than ever. Someone who can master new technology fast will outperform others by using these tools to boost their productivity and results.

But it’s important to remember that AI isn’t a magic solution. While it can enhance a sales team’s abilities, it won’t replace the human skills needed to build relationships and understand customer needs. Sales reps still need to connect with prospects and solve problems—AI just makes it easier for them to do so more efficiently.

Conclusion

Tech founders often struggle with sales, but by understanding common pitfalls and implementing effective strategies, they can improve their chances of success. Trusting sales teams to drive results and setting realistic expectations are crucial. Additionally, prioritizing adaptability and a willingness to learn in candidates will prepare teams for the evolving sales landscape. Embracing these practices will help founders build strong sales teams and drive sustainable growth.

At inventive.ai, an AI-first RFP software company, we understand the importance of leveraging technology to streamline processes and enhance team performance. If you want more wins for your sales team, consider using our software. Reach out on gaurav@inventive.ai for a demo and see how we can help drive your success in an increasingly competitive market.

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