Founders Need To Bring In The First $20M Of Sales

Thomas Taylor - Wednesday, November 23, 2016

Are you tempted to employ a salesperson?

These days business is changing away from sales-based organisations to where everyone is responsible for bringing in revenue (check out Daniel Pink, To Sell Is Human). But as the leader(s) of the business, the most responsibility falls on you, it's your dream, your business model, your risk.

Hopefully other people in the business will bring in some revenue but until you get to 20 million it will be your responsibility. If a healthy business has a 25% profit margin you should have about 5 million in profit. Then it's ok to take risks on hiring top flight sales people.

Once you get to annual revenue of 20 million there should be sufficient momentum in the business to step back a bit. That usually means, if you've done it right, that other people in the organisation have grown into their roles and have built good customer relationships.

Avoid thinking a team of BDMs will kick start the growth for smaller businesses. That's a 1980's Wall Street model and takes 1980's Wall Street money and risk. Also don't allow yourself to get lost in busy work like admin because you are uncomfortable pursuing revenue. It can be intimidating but the most critical thing you can do.

Happy hunting.

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