Mastering Sales Hires for Unicorn Success
with BOAZ ALBARANES, MANAGING PARTNER AT MINDSET VENTURES
In the fast-paced world of startups, building a stellar sales team is just as crucial as having groundbreaking technology. However, many tech founders are discovering that even with the perfect product, failing in sales recruitment can significantly hinder growth. In a recent episode of Tech Salescraft, Boaz delved deep into the challenges and strategies surrounding sales hires, particularly for startups eyeing unicorn status. Here’s a look at the key takeaways.
Sales Missteps: More Common Than You Think
The conversation began by acknowledging a common issue many founders face: hiring the wrong salespeople. Boaz noted how often companies make mistakes in their sales recruitment, a reality that can be hard to accept. “It’s not just the money—it’s the time and resources wasted. Six to twelve months later, you realise the hire was a mistake,” he explained.
Hiring for sales is often like “flipping a coin,” as Boaz pointed out. Many founders, especially those from technical backgrounds, fail to recognise that sales requires its own expertise and instinct. The lesson here is clear: founders must develop a deeper understanding of their company’s sales needs before bringing anyone on board.
Understanding Unicorn Success
A unicorn startup isn’t just defined by its billion-dollar valuation but by its ability to execute a strong go-to-market strategy. Interestingly, many of the most successful companies don’t necessarily have the best technology. Instead, they master the art of sales and market positioning. As Boaz highlighted, “The graveyard is full of companies with the best technologies but poor go-to-market strategies.”
For companies aspiring to unicorn status, the right sales motion is essential. Tech-centric founders must broaden their understanding of market dynamics to ensure they’re not just building the best product, but also positioning it effectively.
Hire Smart, Not Fast
When it comes to bringing on a sales team, many startups make the mistake of rushing. “Founders often think, ‘We’ve got the funding, so now is the time to hire,’ but that’s not always true,” Boaz advised. The timing of a hire, especially the first Account Executive, is crucial. Founders must first ensure the company is ready, both operationally and strategically, to integrate new hires into the team.
An important aspect of the process is understanding the role and outcomes required from a hire. Is the focus on increasing meetings and POCs, or on driving revenue growth? Without a clear vision of success, even the most qualified salesperson could fail.
“Get Comfortable Being Uncomfortable”
Boaz offered a piece of advice that rings true for many tech founders transitioning into the sales realm: “Get comfortable being uncomfortable.” Founders often default to their technical strengths, leaving sales to others, but that’s a mistake. The truth is, no one can sell a product as passionately and effectively as the founder.
“Become good at it,” Boaz suggested, emphasizing that learning the nuances of sales will not only improve their leadership but also better prepare them to hire and mentor salespeople in the future. A founder who walks in the shoes of a salesperson, even briefly, is far better equipped to lead a successful team.
“Know What You’re Looking For”
The interview process is a make-or-break moment for finding the right fit. As Boaz mentioned, “If you don’t really know what you’re looking for, hiring becomes flipping a coin.” It’s essential to ask the right questions during interviews and drill down into a candidate’s answers. Founders should create a scorecard to objectively evaluate potential hires, ensuring that gut feelings don’t overshadow hard data.
A key quote from the discussion that sums up the importance of preparation is:
“Only at the point when you know exactly what you’re trying to achieve can you say, ‘This person stands a good chance of being successful.’”
This mindset is critical, particularly for companies trying to avoid costly hiring mistakes in the high-stakes game of startup growth.
The CEO’s Role in Expanding to the US
For startups targeting the US market, the debate over whether CEOs should relocate to the US is ongoing. Boaz recommended that if the US is your largest market, the CEO should be physically present as much as possible. The cultural nuances, time zone differences, and value of face-to-face interaction can make a huge difference in building relationships and growing the business.
In conclusion, the episode underscored the importance of thoughtful hiring and strategic market approaches for tech companies aiming for unicorn status. Sales is not just an operational function—it’s a critical piece of the growth puzzle that founders must master to succeed.