When starting a business, it’s like trying to build an airplane while the airplane is already in flight! It is very exciting! However, one of the biggest secrets that founder(s) do not know about is that most founders spend all their energy on startup sales to receive cash in their startup as a source of income; This is very good; however, if there is no clear plan in place for how you plan to deliver what you sell, then it will make it difficult for your startup to be successful.
This guide will show you how to make sure that your sales team (the people who bring the customers into your startup) and your operations team (the people who will keep the customers satisfied after the sale) work synergistically.
1. The Deep Connection: Why Sales and Operations MUST Talk
In the startup world Sales and Operations are like the “Front end” and “Back end” of a website; one part of the website creates visual attractiveness to get someone to click on it; however, the other part ensures that everything works properly when someone clicks on the graphics of a website.
- The Problem: When Sales tells the customers that their delivery will be made within 24 hours but the Operations team does not deliver until 3 days later, it costs the startup dearly the customer has left the startup (lost customers) and the startup now has no customer trust.
- The Solution: The two working together from day one (Sales and Operations) creates: Sales team knows that Operations is capable of doing what they sold allowing the Sales/Operations teams to market their product with confidence!
| Feature | Sales (The Front End) | Operations (The Back End) |
| Main Goal | Finding and converting customers. | Delivering the product or service. |
| Communication | Setting the right expectations. | Managing processes and resources. |
| Quality Control | Checking if the lead is a “Good Fit.” | Ensuring consistency in every delivery. |
2. Master Your Startup Sales (The Honest Approach)
Sales at Startups Are Very Different than Sales in Large Corporations. In the Early Stages of Your Startup, You Are Not Only Selling A Product, You Are Also Selling Your Vision
- Real Problems Solved: Instead of Discussing Product Features, Discuss How You Will Help Solve Your Customer’s Pain
- Simple Solutions Sold: Do Not Sell Products Based Upon Features That You Have Not Yet Developed. Stick To Only What You Can Deliver.
- Honesty Over Hype: The Best Way To Establish A Long-Term Successful Business Model Is To Avoid Overpromising. Being Honest Will Create Trust With Your Customers Towards Your Ability To Deliver The Products You Will Sell
3. Setting a Winning Pricing Strategy
Your Pricing Strategy Will Serve As The Bridge Between Your Company’s Revenues And Its Ability To Continue To Operate. If You Undercut Your Pricing To Build A Customer Base, You Will Undercut Your Profitability. Cover Your Costs (Salaries, Software, Marketing AND Hidden Costs Like Support) When You Price Your Products.
Value Pricing Model: Instead Of Billing Hourly You Should Bill For The Value Of Services Rendered. If You Reduce A Customer’s Expenses By $5,000.00, They Will Pay You $1,000.00 For Those Services Because Of The Value You Provided Them.
Build A Pricing Structure That Will Allow Your Business To Grow Profitably While Maintaining The Quality You Have Created Through Scalable Solutions.
4. Your Landing Page for Startups: The Digital Handshake
A landing page designed for startup businesses is functioning as your unofficial salesperson 24 hours a day, 7 days a week. The landing page is typically the first thing a potential customer sees when they visit your business.
Value Proposition Defined: Your value proposition should be clearly stated within the first five seconds of your visitor arriving on your page. If they need to scroll down in order to read your value proposition, you have likely lost them already.
5. Customer Support for Startups: The Ultimate Test
Promise Fulfilled: If your website says you are “easy to set up” but the operations team sends the customer a 50-page setup manual, then your customers may feel as if they were misled by your sales team.
Next Steps After Payment: Your website should explain your customer onboarding process so that customers know exactly what will happen after they make their purchase. This gives them a sense of security; they will likely return to your business in the future.
When it comes to Customer Service, startups need to provide a connection between the promises made by the Sales Team and the reality experienced by the customer. Customer Service will ultimately turn buyers into lifelong fans of your business.
- Create a Human Connection: Customers dislike dealing with bots when they require assistance. Be professional by using a friendly voice when interacting with your customers.
- Faster Problem Solving: By sharing information between the Sales and Operations teams, your Customer Service representatives can resolve issues without having to ask the customer repetitive questions.
- Establish Feedback Loops: Customer Service should communicate to Sales when customers have general concerns regarding products/services. This feedback allows Sales to make adjustments to their selling pitch.
6. SOPs for Small Business: Turning Chaos into Systems
As you expand, it becomes increasingly difficult to remember all of the things you must remember. This means it’s time for your new best friend – SOPs or Standard Operating Procedures.
- Be Consistent with Your Customers: SOPs ensure that every customer will experience the same quality of service from your company regardless of who is working that day.
- Create Foundations of Freedom for the Founder: A business with systems allows the founder to have more freedom because systems let them be able to operate independently of the founder’s control.
- Speedy Training of New Employees: When you have solid SOPs to train new employees, you’ll be able to get them trained in 1 week versus 1 month.
7. Hiring Your First Employee: A Strategic Move
Finding your first worker is daunting! However, hiring someone to assist is very important. You should hire to meet your bottleneck!
- Understand the Need: If you sell but cannot deliver, find staff for operations!
- Hire for Culture First: Skills can be taught, however, a person must have a “will do” mentality – this is very important in an establishment.
- Find out if a person can work in an establishment/laid back manner and show through 90 day work that they can do the work.
8. B2B Lead Generation for Startups
If you work with business clients, generating B2B leads is essential for any new company. Don’t just look for lots of leads; you should only be looking for the correct leads.
- Target Decision Makers: There is no point in contacting someone who has no authority to make a purchase decision. So, use LinkedIn to identify true owners.
- Create a Personalized Message: If your message is generic, it will likely be deleted quickly. However, when you send a personal note to someone detailing their specific situation and/or problem, it significantly increases your chances of getting a response.
- Focus on Quality Instead of Quantity: 10 high-quality leads are much more valuable than 500 low-quality leads.
9. Managing Your Startup Burn Rate
Your startup burn rate is what you spend each month as you operate. If you don’t monitor it, your startup will be out of “runway,” or the amount of time you have left until you become profitable.
- The CAC (Customer Acquisition Cost) is something you should analyze and control. If your average customer acquisition cost exceeds the revenue that you will receive from that customer, then your burn rate is considered too high.
- Efficiency Must Come Before Expansion: Before employing 10 people, see if you can replace them with automation or by developing better processes that will allow you to perform the same functions at a lower cost.
10. Customer Retention: Keeping the Bucket Full
Small business customer retention methods cost far less than finding new leads.
- 30-Day Onboarding Magic: The first month is critical! Make your customer feel “wow!” instantly upon purchasing your product.
- Routine Check-In’s: Don’t make the sale and then “disappear”. Make sure to periodically ask your customer “What else can we do to help you?”
- The Benefits of Loyalty: Happy customers will refer their friends and those referrals are the easiest sale you will ever make.
Conclusion
There’s no denying that sales and operations play equal roles in the success of your business. Scalable growth results from aligning your small business sales and pricing strategies with your company’s policies and procedures (SOPs).
While sales bring the customer to you, operations will keep the customer coming back. Sales and operations are the foundation of your business success.
