Top Line Crucial To Start-Up

The adage “nothing happens till somebody sells something” has plenty of meaning for every business but is particularly important for start-up entrepreneurs who must decide WHO should be doing the selling.

Q. Less than a year ago I purchased the remnants of a business that used to produce wooden playground equipment for the institutional market. Given my turn-around efforts, the quality of my new product, and early reactions from potential customers, I think I’ve got a winner. To date, I’ve been doing all of the selling. Is this the smartest approach or should I recruit an established sales rep organization to do it for me?

A. Reps definitely can be a big help, but in the start-up phase of an enterprise, I believe that selling is “job No. 1” for the entrepreneur. The lifeblood of every business is its “top line” sales revenue.

The “bottom line” is important, to be sure, but the fact of the matter is that, without a substantial, consistent, enduring income stream at the “top” of the income statement, there is no business. All of the MBAs in the world can’t produce a black bottom line if there’s no top line from which to work.

At this stage of your undertaking, It is especially important for you to be immersed in the sales process. Customers, existing and prospective, will want to see the “new kid on the block” to personally judge your talent, commitment, staying power, and prospects for success. Remember, people prefer to do business with people, not impersonal “organizations,” so it’s important to establish your firm’s “personal profile” early on.

An “intimate” connection is especially important at the beginning of a relationship, when glitches most likely occur. Moreover, your vision of the future and your enthusiasm for its realization can best be conveyed by you.

We all prefer to do business with winners and, at this point, you are the only one who can convey that image effectively. Direct customer contact during the start-up phase will also provide critical information with which you can adjust and fine-tune your approach to the market and develop the most effective “pitch.”

Feedback concerning your product, pricing, delivery practices and service policies will enable you to make important adjustments before you launch a “full-court press.” Your initial meetings with customers will constitute valuable market research, too. In addition to the feedback they produce, you’ll be able to determine, firsthand, the best market channels to use and the most appropriate sales team to eventually put in the field.

Obviously, hiring one or more salespeople to do this for you full time would maximize your firm’s clout in the marketplace. But the associated payroll and support costs would be substantial. Then there is the difficulty of finding someone who is experienced, familiar with the market you want to serve, and who is willing to join your fledgling venture.

It could be tough to get the right full-time person at this point in your firm’s development. That’s why many businesses like yours turn to “reps” once the founding entrepreneur has established a presence with customers and has developed a thorough, personal understanding of his or her market’s proclivities, potentials and idiosyncrasies.

Professional reps who sell products like yours or deal with the same markets you have targeted can give your firm the sales boost it needs at a cost that is directly related to the sales volume generated.

While these people won’t be devoted exclusively to your company’s interests, they will be able to feature your product at the times and places that are most appropriate. A good rep will have established a meaningful rapport with his or her customers so your product should get adequate attention from prospects.

Even though you may only command a fraction of his or her time, the proven rep will work hard for you in the field since his remuneration is based entirely on his success in selling your product.

Companies like yours will often recruit a number of reps to their service. However, it is critical that you find the right representative or sales agency.

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