HOW TO SPEND IT — PART 11
The Essential Elements for Startup Sales Success
For startups, effective sales are the lifeblood of growth and sustainability. However, achieving success in sales is not as simple as having a great product and hoping customers will come knocking on your door.
“Build it and they will come!”
The idea of a genius inventor with a brilliant idea conquering the world has become obsolete since we left the scarcity economy. Nevertheless, many startup founders seem to follow this logic, and it is not limited to founders with a technical background; economists also act similarly.
“We invented a new AI technology that will revolutionize [insert a use case of your choice]!”
“With our innovative transactional business platform, we will disrupt the entire [insert a market of your choice] market!”
Investors hear stories like this every day. They sound bold. But can we trust them? At the end of the day, it’s about whether a startup can generate revenue. And this is a question of sales.
Let’s focus on the basics. They may seem boring, but they are the foundation of prosperity. Further articles will deal with more sophisticated aspects and dedicated sales tactics.
Step 1: It’s Not Sales, it’s Product Development and User Research
Sales success doesn’t start with a great idea, but with a perfect product-market fit.
This means that a product or service addresses a real need in the market and resonates with the target audience. Before even considering scaling sales efforts, it’s crucial to validate the product-market fit.
There are many ways: market research, product tests, user feedback, and after that — most important — initial sales. It should be clear that close communication with users and customers is crucial to develop a profound understanding of what they really need. Without this foundation, any sales efforts will lack direction and will result in wasted resources.