When is it time to ditch founder-led sales for a more professionalised playbook? We wanted the VC perspective so we asked Kiran Mehta, Investment Manager at Mercia Asset Management.
Founder-led sales can be great, but:
- It likely won’t attract VC funding or lead to explosive growth.
- There’s a limit to how scalable it can be.
Here’s when to consider a playbook:
- You’ve achieved a certain level of revenue or funding. Mehta suggests £200,000 to £2 million in Annual Recurring Revenue (ARR) as potential tipping points.
- Your sales process needs to be documented and systematised.
Shifting from founder-centric to playbook sales involves:
- Building a Sales Development Rep (SDR) team: This frees up the founder to focus on strategic initiatives while the SDRs handle lead generation.
- Creating a repeatable sales process: A documented playbook ensures consistency and reduces risk.
- Hiring for specific skills: As you move away from founder-led sales, you may need to bring in salespeople who complement the founder’s deep domain knowledge.
What does this mean?
While founder-led sales can get you started, building a professionalised playbook is essential for long-term success, especially if you’re aiming for VC funding.