Panel discussion: Hiring and Structuring Sales Teams at different stages

Scaling a startup is challenging, with 80% failing to reach critical size, according to McKinsey. The demand for Chief Revenue Officers (CROs) has surged, with over 2,000 positions open on LinkedIn. Fortune 100 companies with CROs see revenue growth 1.8 times higher than their peers, benefiting from combining marketing and sales under one role.

The CRO’s responsibilities include creating a unified revenue engine, from lead generation in digital marketing to sales closing. They handle market analysis, the customer journey, and strategic expansions. CROs ensure alignment among employees, processes, and technology throughout the revenue cycle.

This panel explores:

• Where CROs make a difference: Identifying critical areas for CRO impact.
• When to hire a Sales Leader: Determining the right timing for hiring.
• Who is best suited for the role: Understanding the ideal profile.
• Why CROs are essential for growth: Discussing their increasing importance.

By addressing these points, the panel highlights the crucial role of CROs in driving high growth for companies.

Expert Panelists

• Veselin Penchev, VP Sales @MyTraffic
• Charles Beneteau, VP Sales Europe @PlayPlay
• Jonathan Trepo, ex-Chief Revenue Officer @Alma

Hosts

• Antoine Freysz, Entrepreneur & Cofounder @Kerala
• Cyrille Lafont & Thibaut Dousset, Cofounders @Sonnar

We heard

• “If the founder doesn’t have a sales DNA, it quickly becomes complicated to grow.
• Previously, with only 3/4 salespeople on the team, there was no point in hiring a sales leader. They need to manage at least 10 people.
• I should have hired a Sales leader earlier who could close deals and explain to 10 salespeople how to do the same. At that point, I had to manage too many people as a cofounder and lost a lot of time.
• At the beginning of the company, you need entrepreneurs, not executors, but "sales-entrepreneur" profiles are very rare.
• The key to success for companies at this stage is client contact. You need to deeply understand your client's expectations to immediately impact product marketing. Structuring too early loses this link, which is dangerous.
• The founder is very passionate, so he could sell anything to anyone. This can only be a temporary setup and doesn't solve the PMF (Product-Market Fit) question.
• Even with rigid processes, salespeople will always be creative and work around them! (laughs)
• In recent years, we've tried to process too early and too quickly. We've seen ready-made kits, coaches with very elaborate playbooks, but inapplicable.
• Regarding the collaboration between Marketing and Sales, what worked well was having a VP Sales Ops who bridged the gap between the two teams and brought the issues rationnally to the CRO/CEO.
• The mantra of a sales leader should always be "simplify."
• At Napta, we made the opportunity qualification process as objective as possible, which helps maintain alignment between the sales and marketing teams for as long as possible. And it works.
• When the sales and marketing teams don't talk to each other, it’s often a people issue.
• The ability to recruit very mature profiles is one of the main reasons for the success of the companies I’ve invested in from the start. These profiles will change the game.
• Most of the time, you don't need a CRO. A good VP Sales and a good VP Marketing are better than a CRO unless you’re launching new markets or geographies or need to optimize a very elaborate funnel.”

Key learnings

1. Timing for Hiring a Sales Leader:

• Founder’s Sales Role: Initially, founders often take charge of sales. Founders have a unique connection with the product and customers, making them effective early on. Staying as the lead sales until there are 5/6 people on the sales team as a co-founder is vital because the key to success at this stage is client contact. You need to deeply understand your client’s expectations to immediately impact product marketing. Structuring or recruiting too early may break this link, which is dangerous.
• Early Scaling Challenges: As the company grows and the ACV increases, founders should consider hiring a sales leader. When the ACV is between €50k and €100k, a "business entrepreneur" profile is ideal to build and refine sales processes. This profile is capable of fieldwork, as well as constructing playbooks and helping the team replicate the recipe. When you hire someone too senior early on though, they often don’t find their place.
• Large Accounts: For targeting large accounts, a proactive leader who can be creative, not too reliant on scripts, and able to handle complex negotiations is crucial.

2. Structuring Sales Processes:

• Simplicity and Efficiency: Initially, allow for creativity and adaptability in sales approaches. Implement structured processes gradually to ensure consistency and scalability without stifling innovation. Remember, the mantra for sales leaders should always be "simplify."
• Incremental Playbooks: Start with fundamental processes (e.g., lead qualification, elevator pitch) and build upon them. Avoid over-complicating early on to prevent misalignment and inefficiency. It’s already a good challenge to get the whole team to follow the basics.

3. Collaboration Between Sales and Marketing:

• Shared Objectives: Establish common goals for both sales and marketing to ensure alignment. CROs can bridge the gap between the two teams and bring the issues to the CEO if need be. Because he/she is neutral, they can address the situation rationally.
• Role of a CRO: A good VP Sales and a good VP Marketing are better than a CRO unless you’re launching new markets or geographies or need to optimize a very elaborate funnel. The CRO isn’t a miracle solution and is too often a band-aid.

4. Role of Experienced Profiles:

• Impactful Leaders: Bringing in experienced leaders is one of the first reasons for the success of the companies. Combining marketing and sales team can help attract a profile who is looking for a large team to manage but also have the capacity to acclimate and work with young team members.
• Motivational Dynamics: Experienced hires also signal to the team that the company is entering a new phase, which can boost morale and productivity.

Conclusion:

In summary, the timing and nature of hiring a sales leader, the balance between flexibility and structure in sales processes, and the collaboration between sales and marketing are crucial for scaling a startup. Founders need to leverage their unique position initially, gradually introduce structure, and ensure alignment across teams to achieve sustained growth.