Podcast Episode: Building the Sales Team from the Ground Up

In this episode of Extraordinary Pursuits, BIP Ventures CPO Christy Johnson speaks with John O’Brien from sales placement firm Sales Talent Group. The discussion focuses on the ways that hiring skilled sales professionals or managers can make or break business growth. John shares the key considerations for sales hiring in a company, including knowing when to hire, core qualifications, and spotting the signs that it’s time to replace a sales manager. Investing in hiring skilled sales professionals or managers is essential for business growth. They are critical in driving revenue, expanding market presence, building customer relationships, and staying ahead of the competition.

In this value-packed episode, we discuss key considerations for sales hiring in a company. John highlights when to hire a salesperson or sales manager, emphasizing the importance of assessing current workload, market demand, and growth projections. He also gives insights into the qualifications to look for in candidates, including strong communication skills, resilience, industry knowledge, and previous sales experience. It also touches on indicators for when it might be necessary to replace a sales manager, such as declining performance, poor team morale, or a misalignment with company goals.

What is the ideal timing for a startup to make its first sales hire? The ideal timing for hiring a first sales team member often coincides with a company reaching a critical inflection point. The founder is overstretched so sales can no longer be founder-led. This point happens earlier than you might think. The startup has a few employees and under a million in revenue.  ‍

3 Signs That it's Time to Hire a Sales Lead

1. Bandwidth issues
2. Stalled revenue growth
3. Initial networks are exhausted   

What are the key qualities to look for in this first sales hire? The first sales hire should have an entrepreneurial spirit, be adaptable, resourceful, and team-oriented. They should have a genuine passion for the product and ideally, experience in similar market environments. A risk-oriented mindset and a track record of success in sales are also crucial. ‍

How should the role of the first sales hire be structured?  Focus on hiring a doer, not a manager. This person needs to be primarily focused on selling without being bogged down by administrative or non-sales duties. The role should be clearly defined with specific expectations and goals outlined in what we term as 'job design'. Job design is a thoughtful process that goes beyond a traditional job description to ensure the role is clearly understood by the hiring team and the candidate, and that all efforts align with strategic company objectives. Job design forms the basis for evaluating the success of the hire long-term. ‍

2 Pillars of Job Design

1. Specific expected outcomes and accomplishments  
2. End results and contributions crucial for the success of the business

What common mistakes do startups make when making their first sales hire?  Common pitfalls include not aligning job expectations with the company’s actual needs, overvaluing experience from big brands, and failing to integrate the new hire into the company's culture effectively. Startups often fall into the trap of failing to adequately prepare the hire to succeed in a lean and dynamic environment, particularly if they are not coming from a startup environment.

Making the first sales hire is a pivotal decision for early-stage startups. The process of identifying and hiring the most appropriate candidate requires a thorough understanding of the company's current stage, clear definition of the role, and a strategic approach to recruitment. This is not a process to rush. Invest time and resources to define the role and expectations clearly, ensuring alignment with the company's goals and culture. This preparation sets the stage for the hire's success and significantly impacts company trajectory.

Timestamps:

• [00:01] Introduction to the show with John O’Brien and his backstory in sales  
• [02:21] When is the right time to do sales hiring in a company?
• [06:01] The two different schools of thought in sales
• [08:05] The process of job design in sales hiring 
• [10:38] The role of the company’s board in finding the right sales candidate
• [11:43] Key qualifications to consider in your first hire of a sales professional
• [14:58] Why attitude, aptitude, and desire are key considerations when hiring a salesperson 
• [16:08] The financial aspect of the sales manager and how startups can navigate
• [22:17] Job titling mistakes to look for
• [30:10] Common mistakes entrepreneurs make when hiring a sales manager
• [31:35] Guidelines on when to let a sales professional leave the company
• [38:49] What portfolio companies mostly struggle with as it relates to hiring

Points of Wisdom:‍

• “Frequently, the first sales hire is super difficult because most of the times we don’t know what the trigger is.”- Christy Johnson [2:21]‍‍
• “Job design boils down to what needs to be done. Nobody ever gets fired for their lack of doing. Usually, it is for what they did not get done.”- John O’Brien [08:31]‍

About John O'Brien:

John O’Brien is a seasoned executive in the field of sales, specializing in placements across the United States. As the Founder, CEO, and Managing Partner of Sales Talent Group, he oversees the day-to-day operations of the Professional Sales Search Division, focusing on both outside and inside sales professionals across various leadership levels. With a track record of success, John has consistently ranked in the top three among over 600 nationwide sales professionals during his 15-year tenure at Lanier Worldwide. His experience includes roles such as Sales Manager in New Orleans, Louisiana, National Sales Trainer, and Director of Marketing & Sales Center in Atlanta, Georgia.

Christy Johnson is a General Partner and the Chief Performance Officer for BIP Ventures, where she provides comprehensive and tailored advisory support and resources that help the firm's portfolio companies grow further and faster.