We’ve covered some important themes around B2B sales teams, from what it takes to build a new team from the ground up to when to hire a sales development team. Now it’s time to focus on what you should know before making your first sales hire.
The first sales hire in a startup is crucial because they lay the groundwork for revenue generation, establish sales processes, and shape the sales culture. They close initial deals, create a scalable sales model, identify target markets, and provide essential customer feedback for product development. Their success directly impacts the startup’s growth, investor confidence, and market position. So, before you hire, here’s what to know:
Time it Right
The best time to make your first sales hire is when you have a clear product-market fit and a have successfully sold to a strong cohort of ICP customers through founder led sales. This usually occurs after the initial development phase, when you have validated your product with early customers and gathered enough feedback to refine your offering. Hiring too early can lead to wasted resources, while hiring too late can slow down growth and cause you to miss market opportunities.
Hire a Founding Account Executive
The first sales hire shouldn’t really be a salesperson at all, but rather a “founding AE.” This means that they’re a true partner, and an entrepreneurial thinker who can drive results independently. Think of this approach as building the plane while flying it. We’re not looking for big company sellers accustomed to extensive resources and systems. Startups operate differently; we’re in the phase of building, selling, testing, and iterating.
Hold Out for These Key Skills
There are certain skills and traits that are extremely important to seek out in your founding AE, including:
- The ability to absorb, process and leverage information quickly. This looks like active listening, asking questions, digging deeper, and feeling like they already know your space even if they don’t.
- Curiosity. This also manifests as active listening, but takes it a step further and involves never taking what someone says at face value. Someone with great curiosity asks one more question, poking and prodding relentlessly until they get to the meat of the issue.
- Confidence. Major caveat here: don’t mistake this for false bravado. True confidence comes when you understand it’s ok if you don’t know everything, asking instead of telling, and being willing and able to learn. At the same time, it involves having the killer instinct to strike when the iron is hot–and be the one to create the heat, if necessary.
Be Open to Taking a Big Risk
A bold hire with entrepreneurial spirit and a high-risk tolerance can bring fresh perspectives, challenge the status quo, and push the company beyond its comfort zone. This can lead to breakthrough sales strategies and market penetration.
On the other hand, playing it safe might lead to hiring someone who sticks to conventional methods, potentially stifling creativity and slowing down progress. A cautious hire may be less likely to take the necessary bold steps to capture early market share and drive the aggressive growth needed in the startup phase.
Pay Attention to Where They’re Coming From
Look for proven achievers who have scaled companies from $500K ARR to $5M or $10M—they understand what it takes. While they come at a premium, their track record may justify the cost. Ensure they understand the job’s initial sales targets are on them; they must crack the code to scale sales before building a team.
Another promising pool are early-stage entrepreneurs with sales experience, eager for a chance to contribute meaningfully. They seek more than a role; they want to be part of something transformative. Though less costly, they bring risk appetite and value equity. I’m a big fan of these folks (full disclosure: this was my exact profile when Justin Gray hired me at LeadMD in 2014).
If there’s one thing you take away from this blog, remember: don’t treat your first sales hire like any other hire. Your first sales hire is infinitely more important and has the power to positively impact your startup in countless ways. Stick with the recommendations outlined here, and your startup’s growth trajectory will be better for it.
