Tips for Founders - How to structure your first Sales Team

Tips for Founders -

How to structure your first Sales Team

One of the most important decisions you will make is how to structure your first sales team. The structure of your team will determine the success of your sales efforts, so it’s important to get it right.

Here are some tips on how to structure your team, set incentives, and define roles and responsibilities:

• Define Roles and Responsibilities  
• Set Team Goals  
• Develop an Incentive Plan  
• Offer Training and Support  
• Encourage Collaboration

1. Define Roles and Responsibilities

The first step in structuring your sales team is to define roles and responsibilities. Depending on the size and complexity of your business, you may need to create several positions, such as a Sales Director, Account Executives, Regional Managers and/or Inside Sales Representatives. Each position should have its own set of responsibilities, such as prospecting and lead generation, managing customer relationships, closing deals, and creating and delivering presentations.

2. Set Team Goals

Once you’ve defined roles and responsibilities, you’ll need to set team goals. These should be specific and measurable, such as “generate five qualified leads per month” or “close five deals per quarter”. Goals should be challenging but achievable, and should be reviewed and adjusted regularly as needed. By setting Key Performance Indicators (KPIs), you can ensure that your sales team is on track to reach their goals and that you’re making the most of your time and resources.

However, it’s important to be strategic when creating KPIs for your sales team. The wrong KPIs won’t provide enough insight into the progress of your sales team, while too many can be overwhelming. To help you get started, here are some tips for setting and tracking KPIs for your sales team, along with examples of successful implementations from other businesses. 

• Identify Your Sales Goals: Before you can set KPIs, you need to identify your sales goals. Ask yourself, what do you want your sales team to accomplish? This could be anything from increasing sales revenue to improving customer satisfaction. Once you have identified your goal, you can create KPIs that will help you track your progress towards achieving it.
• Choose the Right KPIs: Choosing the right KPIs for your sales team is essential. You want to choose KPIs that are specific, measurable, achievable, and relevant. For example, if your goal is to increase sales revenue, you could choose KPIs such as “total sales revenue” or “average sale price”. This will give you a clear indication of whether or not your sales team is on track to reach their goal.
• Track Your KPIs: Once you have chosen the right KPIs, it’s time to start tracking them. This can be done using tools such as spreadsheets or customer relationship management (CRM) software. These tools will help you easily monitor the progress of your sales team and make any necessary adjustments to ensure that you reach your goals.
• Monitor Progress and Make Adjustments: It’s important to regularly monitor the progress of your sales team against their KPIs. This will help you identify any areas that need improvement and make any necessary adjustments to ensure that you reach your goals. For example, if you have set a KPI of “number of sales calls made per day”, you could adjust the number if it’s not being met. 

Here are some examples of successful implementations of KPIs from other businesses. For example, Salesforce has implemented KPIs such as “number of leads generated” and “number of sales closed”, which have helped them to improve their sales performance. Similarly, Dropbox has implemented “customer satisfaction” as a KPI, which helps them to ensure that their customers are getting the best experience possible.

3. Develop an Incentive Plan

Incentive plans for sales teams are essential for keeping your team motivated and helping them reach their goals. Depending on the size of your business and the objectives of your sales team, there are a variety of incentive plans that you can choose from. While some of these plans have been successful for other businesses, others have not been so successful. In this article, we will discuss the different types of incentive plans, examples of successful and unsuccessful implementations, and strategies for choosing the right incentive plan for your business.

The most common type of incentive plan is a commission-based plan. Under this plan, salespeople receive a percentage of the revenue they generate. This can be a powerful motivator, as salespeople are more likely to focus their efforts on high-value sales. However, it's important to ensure that the commission structure is fair and reasonable, as commission plans can lead to disputes between salespeople.

Another popular incentive plan is a revenue-based plan. Under this type of plan, salespeople are rewarded based on the overall revenue their team generates. This can be an effective way to incentivize an entire team to work together towards a common goal. However, it can also lead to a lack of focus on individual performance, as salespeople may be less likely to put in extra effort if their contribution is not recognized.

Finally, there are incentive plans that focus on customer retention. This type of plan rewards salespeople for keeping customers engaged and satisfied. This can be an effective way to increase customer loyalty and build long-term relationships with customers. However, it can also lead to salespeople focusing too much on pleasing customers and neglecting sales opportunities.

When it comes to successful implementations of incentive plans, one example is IBM’s “Master Incentive Program”. This program rewards salespeople for achieving high sales numbers, customer retention, and customer satisfaction. This program has helped IBM to become one of the top technology companies in the world.

On the other hand, there are examples of incentive plans that have not been successful. One example is Microsoft’s “Solution Selling” program. This program rewards salespeople for selling complex solutions to customers. However, the program was too complex to be effective and salespeople were not incentivized to close sales.

When it comes to choosing the right incentive plan for your business, there are a few key strategies you should consider. First, it’s important to choose a plan that aligns with your company’s goals and objectives. Second, you should select an incentive plan that is fair and reasonable for your sales team. Finally, you should consider how the plan will be implemented and monitored to ensure that it is effective and successful.

4. Offer Training and Support

Another key element of a successful sales team is training and support. Your team members should have access to the resources they need to be successful, including product knowledge, sales techniques, and customer service skills. You should also provide regular feedback and coaching to ensure that your team is on track and meeting its goals.

There are a variety of training options available for founders to offer their sales staff, from online courses to in-person seminars and workshops. Here are some of the training options that you can provide for your sales staff: 

1. Online Courses. Online courses are a great way for sales staff members to stay on top of the latest trends and gain new skills. Online courses can range from basic sales principles to more complex topics such as customer service, negotiation, and sales process optimization.

2. In-Person Seminars and Workshops. In-person seminars and workshops can be organized by companies to train their sales staff in specific areas. These types of programs are beneficial because they allow sales staff to interact with instructors and other participants, and they provide a more immersive learning experience. 

3. On-the-Job Training. On-the-job training is a great way to give sales staff members an in-depth look at how the company does business. This type of training allows sales staff to understand the company’s sales process and get a feel for the types of strategies and tactics that the company uses.

4. Mentorship Programs. Mentorship programs are a great way to give sales staff members a more personalized learning experience. Mentors can provide guidance and support as sales staff members learn the ropes, and they can also provide valuable insights into the best sales strategies and tactics.

By investing in training for your sales staff, you’ll be able to ensure that they’re up to date on the latest trends and strategies. You’ll also be able to help them become more successful in their roles, which will lead to increased sales and higher customer satisfaction.

5. Encourage Collaboration

Finally, it’s important to foster a culture of collaboration within your team. Encourage team members to share ideas and information, and be open to constructive criticism. This will help ensure that your team is working together to reach common goals. Structuring your first sales team is an important task, and it can be overwhelming. With the right approach, however, you can create a team that’s organized, motivated, and successful.

By defining roles and responsibilities, setting team goals, establishing an incentive plan, offering training and support, and encouraging collaboration, you’ll be well on your way to building a successful sales team.

This article is a part of a new series - Tips for Founders.

This series will include general hints and tips for founders going through the grind of starting their businesses, including ideation all the way through to product market fit, scaling and capital.

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