Budget dilemma for start-ups: How much product and how much professional sales?

For every start-up in the software industry, the focus at the beginning is on developing the product. However, after the first presentable prototype, there is nothing to stop you from tackling the marketing of the new baby. A product demo is quickly developed and the website has already been prepared.

But how do you go about sales? And above all, who?

Well, someone in the team will be found for it. If in doubt, one of the founders will do it anyway. Perhaps there is already a COO or CFO. A dedicated sales colleague? It will work out somehow, anyone can do that - the main thing is that product development progresses. If necessary, you give a discount to get through to the customer. An experienced salesperson can always be brought onto the team later.

The list of important tasks and functions in a start-up is varied. This abundance must be distributed across a few shoulders. It is quite clear that you have to make compromises here before you can take the next step in growth. But I keep seeing start-ups with interesting ideas and business models that underestimate the complexity and effort that a promising sales approach entails. And the tight budget does not allow for professional salespeople and a sales manager. Additional staff is particularly painful because of the long-term commitment that this entails. It is of little help to be told that the total costs of an established software product provider are roughly distributed as follows: one third product development, one third administration and management, one third sales and marketing. Development comes first.

It certainly will not work without investing in building up market access. Of course, it is best to do this with experienced staff right from the start in order to place the product on the market with force from the very beginning and to quickly win the first customers. This is exactly where you can achieve a lot with an external consultant as an interim manager for the sales that is being built up. Of course, such a service is not free. However, you still have the flexibility to stop this advice at short notice. You get some breathing room with a tight budget. If the interim manager is experienced, the training is manageable and productivity remains high.

Well, there you go! There is a way to implement the same excellence in sales early on as the product promises anyway. Both are possible with BizConz.