I received a question recently regarding adding a non-tech salesperson that understands tech products to a tech company’s business plan. The techpreneur has developed a PaaS (Platform as a Service) that’s useful for most common types of data warehouses and lakes.
Should she find a non-tech salesperson who can pitch her product to the market?
Our company writes business plans for many tech companies. A couple of coders usually come together and have a great idea; however, it’s hard to get funding or business growth without someone focusing on sales.
There are different types of salespeople that can be hired for a position like this.
Appointment Setter – Many techpreneurs are great at closing sales; however, they don’t have enough time to set appointments. If that’s you, then hiring an appointment setter could be key to your growth. If you’re hiring an appointment setter as a new company (and including them in your business plan), then think about the best type of person to help you.
Individuals with current relationships: Does that individual already have established relationships with your core market? If so, you may have to pay them for each appointment they set. That individual must also feel secure that you will not weaken their current relationships. They must believe your product will benefit their current clients/networks. They must also believe that you – as the tech founder – can close the deal when the meetings are set up. Within your business plan, investors will want to know how and why you selected the individual, examples of the relationships they have, and how influencial they are in their “circles.”
- Telephone appointment setters: Sometimes you aren’t able to engage a person with current relationships (or you may not need to pay the high costs). Sometimes you’re able to locate someone who can make 100 calls a day and convert 2-3 appointments. Within your business plan, you can offer this person $30K-$60K per year plus commission on each qualified appointment that’s set. Within the business plan, investors will want to know your selection process for this person and the training you’ll offer to ensure they are successful. A great book to read about onboarding these individuals is Predictable Revenue by Aaron Ross.
Closer: If you are not great at closing, you may need to hire a salesperson who knows how to close. This individual should know both technology and sales. It’s important to note that some salespeople are great at “gathering” leads (appointment setting) and some are great at “nurturing” leads (consistent follow up until the deal closes). Within your business plan, you may need to identify two different salespeople to help with sales. Investors will want to know that you have a great onboarding, training, and compensation package for these individuals.
Marketing Lead Generator or Chief Revenue Officer (CRO): If a technology has a wide audience (mostly consumers or small businesses), an appointment setter may not be the answer. Sometimes entrepreneurs need a lead generator. Chief Revenue Officers have become very popular in tech companies that require tens of thousands to millions of people to know about their companies. Their job is to drive traffic and your job as the tech founder is to make the experience so unbelieveable that it turns into revenue for the company. Investors will want to know about your CRO’s previous experience and why they’re qualified to assist your startup company.
The answer to hiring a non-tech salesperson is very complex; however, it can make a big difference in your invest-ability. It’s important to think through your current team and what you need in order to reach your milestone. Then write your business plan to answer the question, “How will we get there?”
Cheree Warrick is a business plan writer that helps companies nationwide. She writes business plans for bank loans, angel investment, government certifications, immigrant visas, and more. Contact her at wewritebusinessplans.com.