Four common myths stifling startup growth and how to overcome them
Any startup can strategise extensively, but it will never grow without increasing sales. There are effective ways to achieve this, but also many pitfalls to avoid along the way. Let’s focus on those pitfalls.
Founders are the best people to sell
From experience, this is not true. In most tech startups, founders are usually technically savvy individuals who have invented new software or SaaS platforms and evangelise about this to everyone they meet. However, they often fail to realise that clients aren’t really interested in what functions the tech can perform. Listening to long, detailed demonstrations or pitches can cause potential clients to lose interest. Instead, what they really want to know is how your offering addresses their specific challenges and why your tech is the best option compared to other alternatives they are considering.
Clients prioritise price when buying
This is a classic myth that leads companies to adopt a commoditised approach, often resulting in an inevitable drop in margins. Clients rarely buy purely on price; they make decisions based on value, which should be defined as the ‘customer's perception of worth over price.’ Salespeople need to stand firm during price negotiations and recognise that when a client tries to negotiate, it’s either a buyer's tactic or a sign that the seller has not sufficiently built the value for the client to see the difference between them and a competitor who may have offered a lower price. Rarely does the lower price offer a better solution, which is why many premium brands that charge more than their competitors do become market leaders.
Industry/product knowledge is all that matters
This is one of the most dangerous myths that almost inevitably leads to poor hiring decisions. If you only ever recruit people from your sector or with relevant product experience, you inevitably miss out on some of the best salespeople who can accelerate your growth. These ‘significant few’ can translate their skills across multiple sectors, as these attributes are transferable. Additionally, if you only hire from the competition and are not offering a promotion or significantly more money, ask yourself who is really applying for these roles. Most likely, it is their lower performers who may be at risk of losing their jobs; why else would a well-paid top performer from the competition want to join you?
The customer is always right
Not true. The customer is usually right about the outcomes they want to achieve; however, they don’t always know the best way to get there. You know much more about your product, how it fits in the market, what has worked well for similar companies, and what should be avoided, so you need to leverage your expertise and coach your client through the process. For example, if the client has gone out to tender or sent an RFP, don’t be afraid to question the brief and suggest how it may be improved. If you never get to meet or speak to the client, it will be almost impossible to influence them or handle any resistance they may have, so the aim should always be to have a face-to-face meeting or, at the very least, a virtual one.
Dispel these myths, follow the process and watch the sales grow.
