By Patrick Clements (SherpaDesk CO-Founder & CEO)
Why do tech startups fail? Misunderstanding the market? Mismanagement of funds? Poor product design? I believe those are all symptoms of a bigger problem: Sales.
Too often, startups focus all of their energy on building a product without spending any time gaming out their sales strategy. "Deliver first, monetize later" has become an oft-repeated axiom in Silicon Valley, and while this approach can work for certain businesses, it is not a catch-all solution.
Just because you built a functioning product doesn’t mean there was a market need for it or that you have figured out the best way to reach your potential customers. In fact, there's a big risk that you might not even understand who your real customers are!
Building tech startups is hard, but it will be significantly more challenging without a sound sales strategy. You also might be surprised by some of the most successful strategies I've discovered after much trial and error, learning from past mistakes, and fine-tuning. Hint: It's about more than just market research and competitor analysis.
Let's explore some of my battle-tested strategies that can help turn your startup into a success story.
Strategy 1: The Mad Scientist
Remember Sid, the creepy next-door neighbor in Toy Story? I say he was just misunderstood. Like a mad scientist, Sid pulled apart existing toys and combined their pieces to create something new. Similarly, you can do unpredicted experiments with traditional product-selling approaches.
Maybe that means renting a billboard even though you're a digital startup, or maybe it involves launching a guerilla marketing campaign. The key here is to test different sales strategies, monitor the results, and recalibrate as necessary.
You might fall flat on your face, or you might stumble onto a sales strategy that’s incredibly effective. Regardless, by being open to new approaches and willing to experiment, you'll gain useful insights about what works and what doesn't for your business.
Here are three tips to keep your experiments from blowing up in your face:
EMBRACE A DATA-DRIVEN APPROACH
Innovation is important, but blind innovation can lead you astray. Use data as your guiding map. If an unconventional practice brings significant results, focus, understand, and optimize. If efforts aren't showing results in one direction, don't be afraid to pivot. 
UNDERSTAND THE PATH TO PURCHASE
Within your conventional or unconventional sales strategies, understand your customers—specifically, how they journey from discovery to purchase. This will help you place your efforts where they matter most. No matter how innovative your method is, it could miss the mark if not aligned with how your customers shop.
DON'T BE AFRAID TO GO SLOW
When experimenting with different approaches, it can be tempting to rush, especially in tech startups where the pace is lightning-quick. But good results take time. Taking a step back might sometimes give you the perspective you need to push your sales strategy in the right direction.
Strategy 2: The Fire-Starter
Just like pouring gasoline on a fire can intensify the flame, focusing on what's already working can supercharge your results. If a specific sales strategy or marketing channel shows promise, it's time to double (or quadruple) down on it.
LEARN TO IDENTIFY YOUR 'GAME CHANGERS'
In every business, specific strategies or channels bring in disproportionate results. These are your "game changers." They could be a particular product, a specific marketing channel, or a particular sales strategy. Identifying these game changers earlier on and focusing on them can accelerate your growth.
OPTIMIZING FOR SCALE
Once you've identified your game changers, the next crucial step is to scale them. This means investing more resources into them to maximize their output. Scaling is a delicate process; you need to increase your efforts sustainably without compromising the quality of your leads or sales.
DON'T HOLD BACK
Once you've found what works and have figured out how to scale it, it's time to channel your inner Grant Cardone and pour the gasoline. This involves getting bold, taking calculated risks, and pushing harder on your successful tactics.
While keeping a balance is important, hesitating or holding back can stunt your growth. Being nimble and quick can be breathtakingly valuable traits for tech startups trying to push ahead in this cutthroat competition. It's okay to experiment and stretch your limits. Just keep sight of your end goal, which is a successful, sustainable business.
Strategy 3: The Optimizer
Have you ever been on a sales call, only to realize 35 minutes in that you need to talk to someone with the authority to make a purchase? That indicates inefficiency and "The Optimizer" won’t have any of it. Your goal is to streamline your sales processes and maximize your resources, ensuring that every effort (no matter how insignificant) contributes towards your goal.
DEFINE YOUR IDEAL CUSTOMER PROFILE
To ensure your team is spending time wisely, create a clear profile of your ideal customer. This goes beyond demographics to include the following:
• Problems • Needs • Values
• Sources of Information
This clarity helps your sales team focus their efforts efficiently on high-value leads that won’t waste their time (or your resources).
MAP OUT AND STREAMLINE YOUR SALES PROCESS
Your process should be a clear, step-by-step roadmap for your sales team to follow. Each stage should have clear objectives and actions, removing ambiguity about what is next. Regularly review and update your process to ensure it remains effective and efficient.
USE TECHNOLOGY TO YOUR ADVANTAGE
Tech startups have the advantage of using leading-edge technology to drive efficiency in their sales processes. This can include CRM systems to track leads and sales, automation tools to handle repetitive tasks, or AI to analyze data and provide insights. Leveraging these tools can drastically reduce time waste and increase productivity.
Final Thoughts
So, who do you want to be? Building a sales strategy doesn't just mean paying for competitor analysis and undercutting their prices (I might call that "The Serpent").
It's about choosing a philosophy and approach that aligns with your company's vision, your product, and the specific needs of your customers. You might conduct experiments one day, drip some gas the next, and slash inefficiencies on the weekend.
What's important is refusing to be static. Always be ready to adapt, grow, and pivot based on market conditions and data insights. Remember, startup culture is inherently dynamic. An over-reliance on a single strategy or a failure to innovate can spell doom. Instead, encourage flexibility, foster creativity, and promote a culture that celebrates failures as lessons. After all, as a tech company, your advantage lies in your agility and capacity for innovation. Harness that, and your sales strategy will shine.
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