4 QUESTIONS YOU MUST ANSWER WHEN RAMPING SALES

We have spoken to 100’s of tech startups who have received large amounts of Seed or A rounds.

Over 90% admitted that P&L strategies, let alone P&L leadership was not a priority when ramping sales.

On the surface, they are focused on product, market, and the day they will scale the company.

True, the P&L is critical, and still owned by the CFO.

CEOs & Founders are keen when it comes to maximizing profits, minimizing losses, and managing risks.

They watch SG&A, development, people costs, etc.

When I saw this from the CEO, of Pfizer, a Top 100 CEO, it struck me why startup CEOs do not follow this advice?

P&L adherence no longer belongs in the boardroom or with the C-Suite table.

It belongs on all sales calls, demos, and proposals when selling tech.

The preservation of Gross Margin, and EBITDA is the responsibility of EVERY employee in a startup.

Since the sales team is the “growth engine” and is “customer-facing”, they carry this flag.

Founders generally do not go below the surface as to the reasons why sales reps do not have, or will not learn fiduciary responsibility.

When Pfizer implemented a complete overhaul of its performance management system, the goals they set were “outcomes-based – measuring, not our efforts but the results of these efforts.”

Similarly, if tech start-up reps do not sell with “business outcomes”, then how can they sell their P&L responsibility to customers?

Research shows that effective P&L performance can double a company’s chance of outperforming its competitors.

Why then are sales reps not skilled in the basic VALUE AXIOM?

Companies exist to deliver shareholder value and buy based on value, so sales reps must sell in this value chain.

Then why are they not trained in financial and P&L basics?

And the P&L is at the center of this.

Then based on P&L performance, the tech startup CEO and Founder need to ask;

# -Are “Business outcomes:” part of our solution’s delivery?

#- Are the outcomes embedded into ALL sales content, engagement, demos, proposals…?

#- Have we assessed & trained the Sales team on how to sell with them?

#- Do we have an ongoing measurement program to track how our Sales AND margin steadily outpace our goals?

Successfully running a P&L means you have mastered this.

Being good at the new P&L means you have mastered scaling sales based upon profit.

For those who master this, they become the ones who are driving breakthrough change for their companies, their careers & their worlds.

Excerpts were taken from: The New P&L: Performance and Leadership, Albert Bourla, CEO, Pfizer, Feb. 3, 2020

Partners like Colin Kleine & Al West support this.

Follow me.

Always glad to share 100’s blogs & best practices on selling value and getting to the C-Suite for easier deal flow.

If you are a Founder, what do you think? 

#sales #digitalmarketing #leanstartups #technology #startupfunding