Based on Stephanie Friedman's 20 years of sales
experience, her new book, Built to Grow: A Handbook For High-Performance Sales Teams, is the perfect step-by-step, go-to-market
field guide for startup founders.
Friedman offers readers a
structured and repeatable methodology for building a high-performing sales
function from a company’s earliest days. The book is divided into three phases
of startup growth—Experiment, Build, and Scale.
Within each of the three phases,
Friedman covers:
No matter how experienced
your salespeople are, any high-performing sales organization should follow one
simple but important rule: No call without an agenda. This helps reinforce the
necessary discipline around call preparation and ensures your customers have
the best possible experience when talking to your sales team.
It’s so important that
your sales team stays calm in the face of challenges. If they can’t solve a
problem themselves, they need to feel comfortable bringing it to you or your
sales leader as quickly as possible, without fearing you’ll be angry or will chastise them.
Never bring up a
competitor first. Understand your competition inside and out.
As a CEO, lead by example,
celebrating successes and offering praise for great work, while also taking
responsibility for failure and explaining how you intend to change course when
necessary.
A good salesperson will be
able to tell a succinct and compelling story. They’ll read the audience and
tailor their message to that audience. The more naturally this comes to them,
or the more time they’ve spent honing this skill, the better. The best
salespeople tend to be natural storytellers who have also spent time sharpening
their storytelling abilities.
Friedman shares these
additional insights with us:
Question: Of the three
phases, Experiment, Build, and Scale, which do startup founders and CEOs
struggle with most, and why?
Friedman: The reality is that
every phase of a startup is incredibly challenging and intense. There are
different challenges at each stage, but I think the hardest part for founders
is that building out your go-to-market has traditionally been a “black box”:
filled with trials and errors without clear metrics or milestones that signal
if you are on the right track, or concretely if you are ready to hire more salespeople,
for example. This is exactly why I wrote this book as opposed to publishing a
series of blog posts - to give founders a framework to hold on to while they
build out their sales organization, and to give founders, investors and startup
executives a joint vocabulary to talk about and strategize about a startups
go-to-market process and maturity together.
But to answer your
question more specifically: The answer will depend on the background and
personalities of the founders as well as the trajectory of the startup. So, I
wouldn't necessarily say that one phase is easier for startup founders and CEOs
than the others. That being said, a big theme of my book is that there is one
thing you need to figure out early in your startup’s journey: Who will buy your
product, who won’t, why or why not, and how best to sell to them – and become
very clear and intentional around that.
This means that in the
early days of a startup–I call this phase Experiment– founders need to work on
experimenting with, identifying and documenting their repeatable sales motion.
They need to figure out who their ideal customer is, how they best find them
and communicate with them, and how they best close a sale with customers of
that profile. Very concretely this means that– once the founders have
successfully sold the product to a series of paying customers–they need to
bring their first couple of trailblazer sales hires on board: a special profile
of early-stage startup salespeople who will team up with the founders on a
mission to figure out and document their repeatable sales motion. This will
produce a startup's first version of a written sales playbook - which is the
foundation of a scalable business: knowing who to sell to, why, and how.
Now, are the early days –
the Experiment phase – the hardest? Well, it’s easy to underestimate how
time-consuming and difficult that first phase can be. And it’s hard to figure
out if your early sales success is just a series of relatively easy to fulfill,
pent-up demand from early adopters, or if you have discovered a market that
will have sustained and continued demand for your product. All of this is
especially hard to do when – as a founder in the early days of your company--
you've got a million other things to do.
But is getting the basics
right really harder than Build - the phase where you pressure test your
repeatable sales motion, prove that non-trailblazer salespeople can sell your
product using your playbook, and create a foundation of excellence for your
revenue management? Or is it harder than scaling from, say, $10m to $100m in
sales, as in the Scale phase? I wouldn’t say so, as the latter two phases often
involve a painful overhaul of leadership, management style, and capacity.
In the Scale phase – the
phase where you hit the gas pedal and heavily invest in the growth of your
business –comes with plenty of its own challenges and struggles. I sometimes
say, if you don’t grow fast, you have problems. And if you do grow fast, you
also have problems, just different ones.
- Sales Playbook
- Hiring
- Revenue Management
- Customer Success
- Compensations
- Culture
- Internal Collaboration
Stephanie Friedman
So as a startup founder you really are
the problem-solver-in chief, and during the Scale phase it really matters to
bring the right executive team on board - additional problem-solvers so to
speak – so you can build out each function with capable leadership and a
well-run team. That phase of building out the right executive team to
complement the founders’ strength is also incredibly challenging for two
reasons.
To start with, most executives interview well, and it can be very
difficult for founders to figure out if, for example, a candidate for a VP
Sales or CRO role is actually great, or just good, or maybe not even that good.
And secondly and maybe even more importantly is that it’s not just about
finding a great executive, it’s about finding the right executive for the
right type of company for the right stage.
But of course, a lot of
businesses never make it to the scaling phase–so it does seem to me that
‘Experiment’ is especially important. If you can emerge from your
experimentation phase with a clear vision of your first market, the first ideal
customer profile you want to target, and a good idea how to win those
customers – then anything that comes after will be much easier and much less
stressful than it could be.
Question: How can a leader
of an existing business, rather than a startup founder, best apply the
teachings in Built to Grow?
Friedman: I wrote this book with
startup founders, investors, and executives in mind. In fact, I was thinking
specifically of enterprise software companies, since that is the area, I know
best and spent most of my time working in.
But you know, I've been passionate about sales since I started working in a flower shop at the age of 11. And it’s as much about psychology, motivation, leadership, and team management as it is about business. So, I think there is a lot in my book that can be a huge help to different kinds of businesses at different stages in their lifecycle.
My GTM methodology starts with that, then you add frameworks for managing a sales pipeline, accurately forecasting revenue, and ensuring customer success. At that point, so long as you hire the right salespeople – something I recommend taking very seriously and spending a lot of time on – and build a culture of excellence and winning, you have the building blocks of success, whatever kind of business you're in.
She joined her last startup, Xamarin, in
2012 as their first non-engineering hire and built the customer-facing
organization from zero to 100 sales and customer success people and from zero
to almost 50 million dollars in run rate sales in less than four years. Xamarin
was acquired by Microsoft in 2016.
Thank you to the book’s
publisher for sending me an advance copy of the book.


Comments
Post a Comment