This article dives into the unique sales skills that investors seek in founders, based on a conversation we had with Kiran Mehta, Investment Manager at Mercia Asset Management.
Kiran spoke about that while founders need to be able to sell their vision and product, it’s a different skill set than that of a traditional salesperson.
Here’s what Mehta highlights as key qualities:
- Domain expertise is king: A deep understanding of the industry and problem your product solves is crucial.
- The network effect: A strong network within your industry can be a powerful tool for early customer acquisition.
- Focus trumps fireworks: Founders don’t need to be professional closers, but they should be able to identify and target a specific, well-defined use case for their product.
- Scaling up from founder-led sales: While founders might secure early traction with a variety of use cases, demonstrating a plan to transition to a more scalable sales model is important for investors.
Mehta argues that assessing a founder’s “sales” skills is not about high-pressure tactics
But rather a strategic ability to:
- Leverage industry knowledge: Founders who are deeply entrenched in their industry can build trust and credibility with potential customers.
- Targeted outreach: Founders should have a system or strategy for reaching out to a defined set of ideal customers.
- Focus on scalability: While founders can be successful with a scrappy, “one-off” sales approach early on, they need to demonstrate a plan for building a repeatable sales engine as the company grows.
By honing these skills, founders can not only secure early traction but also position themselves to attract investment and achieve long-term success.
