The Four T's of Startup Sales
Weighing team, tech, timing, and TAM
It’s no secret that 2023 has been a challenging year for most tech sales teams, but companies seem hopeful about 2024, allocating budget toward reqs they intend to open as growth picks up again. Many sales professionals will look for new roles. After being involved with myriad startups over the years, there’s a framework I wish I had followed more consistently when making such decisions. Here are four criteria to consider when evaluating a potential employer:
Team: Who is leading the company? Have they been in this same market before, deeply understanding customer needs and building solutions for them? Do they know how to navigate the next phase(s) of growth? I would argue that the team is the most important criterion - sharp, self-aware people can pivot and iterate, even when their initial product hypotheses are wrong.
Tech: It’s easy for a salesperson to get enamored with a half-baked concept, but will the product(s) actually work? Are there referenceable customers who can articulate the value derived from that solution? Make sure to look for an innovative company with defensible differentiation, but vet their solution to make sure it’s truly going to impact their market.
Timing: Often, tech companies build something amazing, but the market isn’t ready. The term “artificial intelligence” was coined in the 1950’s, and I was selling AI-centric solutions from 2014-2017. Prospective customers couldn’t get their heads around them - they preferred human-led, error-prone, laborious methods. Now, those same people are touting the merits of AI. Consider the timing and the market’s readiness - is the solution a necessary “painkiller” or a nice-to-have “vitamin?”
Total Addressable Market: In many professions, you can enjoy a nice career working for the #5 company in your industry, growing at 10% year-over-year. Sales isn’t one of those professions. The challenge is to find an industry leader with enough market potential to sustain years of explosive growth. Consider this dynamic as you evaluate startups - look for an ocean, not a pond.
The Four T’s will hopefully guide you to great career decisions. Just one missing T can change your experience entirely:
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