How a Fast-Growing Startup Built Its Sales Team for Long-Term Success

Frank V. Cespedes; David  Mattson

Article | Harvard Business Review (website)

How a Fast-Growing Startup Built Its Sales Team for Long-Term Success

Abstract

It’s common for leaders of sales teams to focus almost exclusively on short-term tactics and current operations while failing to think and act in a way that supports the longer-term needs of their businesses—and it’s hard to fault them. The biggest problem with a short-term approach is that managers develop blind spots around crucial processes such as recruiting, hiring, and training and development. This is a problem because it can stall a company’s scaling efforts. To prevent this from happening, companies must make core processes like recruiting, interviewing, and development a real priority in daily practice. As Aristotle emphasized a long time ago, “Excellence is a habit.”

Keywords: Business Startups; Salesforce Management; Management Practices and Processes;

Format: Electronic

Citation:

Cespedes, Frank V., and David Mattson. "How a Fast-Growing Startup Built Its Sales Team for Long-Term Success." Harvard Business Review (website) (December 4, 2017).

Fred Shilmover and Sam Clemens prepared for their fourth quarter board meeting. They were excited to have scaled their software startup, InsightSquared, to $2 million in revenue and secured an $8 million round of venture capital. However, they disagreed on the path ahead, specifically on the sales and marketing plan. Shilmover preferred a sales-centric approach to growth while Clemens preferred a marketing-centric one. Which strategy was optimal for their venture’s next phase of growth?

Shindigz provides party and celebratory items for various occasions and events through its branded online channel, through third-party retail and wholesale channels, and external online marketplaces. The case focuses on pricing challenges facing a venture with an historically premium-priced strategy in an ecommerce environment where promotions and discounts have become the norm. The case concerns the interaction of branding, channel, and pricing in a firm as well as the impact of Amazon Prime on consumer expectations for “free” shipping from vendors.

In 2011, Canibal launched a machine that could sort and compress aluminum cans, plastic bottles, and cups. Users could play a jackpot-style game on the machine’s digital display, while disposing of their beverage containers and earning coupons or other rewards. The machine could also display advertising or serve as a communication tool. In 2016, the company's new machine, the i3, had more potential than earlier models, due to enhanced reliability and displays that could allow Canibal to pursue new markets. Benoit Paget, CEO and founder of Canibal, must choose a growth path: which customer segment should he focus on? How should he position his product? What would be the implications of these choices for marketing and sales requirements, pricing, and funding?

Faculty & Research

How a Fast-Growing Startup Built Its Sales Team for Long-Term Success

Abstract

Citation:

About the Author

More from the Author