Fractional Sales Part 2 – Scaling from Founder-led Growth
Part One in this series about fractional sales covers how fractional sales and business development work.
Part Two outlines fractional business development as a go-to-market (GTM) strategy for small and medium enterprises (SMEs) – from founder-led growth to scaling sales revenue, and unpacks where to use fractional sales for best results.
Founders of SMEs have a tough job. There’s the whole business of getting set up, creating solutions to support your clients, and then having to sell to them. This is especially challenging as most founders did not go into business to do sales.
In the beginning, most SME founders do sales themselves as they often have no budget for sales capability. Richard Liew (NZ Entrepreneur) recently defined ‘founder-led growth’ as when ‘early-stage company founders lead growth by building trust and awareness, and transferring it to their company’.
Like fractional sales, the term founder-led growth is new language for something that’s been happening for a long time.
Founder-led growth starts by building in public, then sharing the highs and lows to grow your audience and grow trust. The founder does those early sales, and trust gradually transfers to the brand.
It’s at this point, usually around five years after the business began (or when you’ve got about seven people in your team) when many founders look to finally transfer sales over to somebody else. So, they go to market for a sales and business development manager, relieved to be getting rid of sales.
Not so fast. Hiring full-time for sales may be a good idea, but that first sales hire is a big jump. In many cases, the jump is too big, and the founder stays doing sales.
To safely onboard that first sales hire, you need to have $100K to $150K to cover their costs. Most founders don’t have a spare $100K sitting around, so their sales remain stuck. Even if they have access to this level of money, it’s much less risky to hire another technical expert you can immediately charge out to clients or get them busy coding something you can sell. Cashflow is king, and good founders ensure that the business remains solvent.
This is a where fractional or outsourced sales helps founders to scale sales in a more sustainable way, without breaking the bank.
Your fractional salesperson or business development manager (BDM) works part-time in your business, for one or two days each week. They’re doing the essential activities you need to put money into your business bank account. As an experienced salesperson, they know exactly where to tap to release sales revenue as quickly as possible.
NINE USE CASES FOR FRACTIONAL OR CONTRACT SALES:
1. Your SME has not yet hired your first salesperson
Congratulations – you’ve made it this far in the entrepreneur journey! You’ve proven the need for your business, and created solutions to your customer problems. You’re now ready to scale, ready to move from founder-led growth to bringing on others who will also be responsible for sales.
Key focus for your fractional salesperson is to set up the business for sales success – and prepare for your first sales hire.
- Sales strategy – refine your sales targets, establish milestones for your GTM strategy.
- Sales process and CRM – set up your systems for success.
- Business development – book appointments to attend; run discovery, sales pipeline, and sales proposals.
2. Evaluate your need for sales resource
Having a part-time sales resource helps founders evaluate your need for full-time sales resource.
- Still too busy even with your fractional sales expert onboard? It may be the right time to hire full-time.
- Happy with your sales results from one or two days per week of targeted sales resource? Part-time business development may be all that you need, on contract or as a permanent hire.
- Feeling more confident with your sales set up and sales process? Your sales function is set up for sales success. You may want to take sales back inhouse.
3. Specific projects or timeframes
Your project-based fractional sales resource ramps up quickly, ready to deliver results.
- Trade shows, conferences, and events – maximise your return on investment.
- New product or service launch – get contract sales support leading up to sales growth campaigns.
4. Sales strategy, sales systems + CRM, sales process set up
Optimise your sales efforts to deliver the best results.
- Full sales strategy or just enough strategy to kickstart your sales.
- Your fractional BDM will work with you to deliver the right level of sales resource to achieve your sales growth goals.
5. Senior sales capability – without the full-time budget
- Ideal for businesses of all sizes, not just SMEs.
- Senior sales talent comes with a significant price tag. If you don’t need them forever, and aren’t sure how to manage them, going with a contract or fractional option makes a lot of sense.
6. Executing on your go-to-market strategy and other GTM initiatives
- The need for serious sales capability often becomes more urgent when you have big growth goals.
- Need someone to do sales for you, but not sure if it’s a permanent thing? Go fractional.
7. Entering new markets or selling into a new country
- Establishing a beachhead in Australia or the US is a common path for New Zealand companies.
- That first overseas salesperson is often a contractor, responsible for establishing the first overseas sales and launching your brand into a new geography.
8. Increase your sales firepower without your competitors knowing
Your fractional BDM is part of your team, but there is no need put them on your website or your company LinkedIn page.
- Test a new offering.
- Run a soft launch for new products or services.
- Increase your business development resource, especially in a new market.
9. On-tap sales capability to cover extended leave or holidays
- Parental leave, overseas holidays, or unexpected family needs mean your full-time sales team may suddenly need additional sales capability.
- Fractional BDMs and sales leaders know how to slot into your team quickly, roll up their sleeves and get to work supporting your growth goals.
So, there you have it – nine reasons to hire your fractional, outsourced sales and business development resource on contract. Your sales growth doesn’t need to stall when things change unexpectedly. Flexible sales expertise is available to support your growth goals, whatever the stage of your business.
Ideas and insights from Mary Crampton, Magnify Consulting
