Starting a business is the dream of many individuals. Beginning with an idea, identifying a market need, developing a solution, to launching a new venture – this is just the start of an exciting but challenging journey.
In the United States, hundreds of thousands of new companies are formed each year. However, very few of them survive with the unfortunately reality being that approximately 90% of startups fail. There are many reasons why new businesses go under, but chief amongst them is an inability to generate revenue via sales.
That is why it is not only critical for a company to have a good sales strategy, but also an effective and highly trained team that can execute it properly. That is where sales outsourcing comes in.
Every startup needs to ensure consistent sales growth to survive. It is quite literally the lifeblood of any business.
This, however, is easier said than done. Without having the necessary process and team in place with a sole focus of reaching your target market, generating leads and revenue will be a challenge. It is for this reason that many choose to outsource their sales process as it ensures experienced sales management, proper implementation of the sales workflow, while also reducing the administrative burden and overall expense of hiring internally.
For a more detailed discussion on this topic, please read Top 5 Benefits Of Outsourcing Sales For Your Startup.
The decision to outsource a company’s sales process is not one which should be entered into lightly as it requires a very close and long-term partnership. So, it is crucial to choose the right service provider.
While the cost of service is important, especially for startups, it should not be the sole consideration. Companies may need to research the service provider and evaluate its industry experience. Doing so will minimize the risks and may help yield great results.
Here are some of the things you have to consider:
The first thing a company has to do is to determine what it wants to accomplish. Set expectations and goals. This way, you can better weigh your options. It would also help to keep realistic goals.
A service provider’s track record can tell you if it is a perfect fit for your company. Find out if they have projects with similar needs and circumstances as your company. You can also check out reviews from previous and current clients to know how they work.
Outsourcing sales is a way for companies to reduce expenses. When you outsource your sales team, you do not have to set up a system in place, prepare infrastructure, and invest in tools and systems. However, all of these are necessary to execute your company’s sales strategy. Make sure the service provider has access to different communication channels. They should also have up-to-date equipment and an effective system that helps the sales team fulfill its function smoothly.
After ensuring the credibility and reliability of the outsourced sales agency, you have to make sure that the people who will be part of the sales team in charge of your company has both the technical knowledge and project experience to meet the requirements you have set. The right service provider will have well-trained professionals to handle clients’ needs.
Revenue growth and
new client acquisition
Reduced and controlled
cost of sales
Brand protection by using
dedicated full-time employees
Sales Intelligence – All
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Startups face various decision-making situations. What you choose to do will affect the company for a long time. In some instances, it may even determine the business’s success or failure.
A question that many entrepreneurs ask is if they should outsource sales or create an in-house team. When it comes to this aspect, an immediate decision should be made.
What you can do is figure out and understand what you are selling and the market you plan on entering. Determine if you and your team will be able to perform the duties necessary in executing a sales strategy.
Generally, outsourcing sales is beneficial for startups. However, the company will have to consider various factors. For instance, check if the timing is right. For more information, read Is Outsourcing Sales For Startups A Good Step?
Asking the right questions can help startups decide whether outsourcing sales is for them or not. Here are some of the more common questions:
Brand and company culture are essential to companies. After all, your startup’s image is something you have worked hard to build. So, ensuring the preservation of company values is a concern for many entrepreneurs.
Your company will not lose its values despite hiring a separate sales team. You need to build a good relationship with the outsourcing sales agency. Establish a partnership with the sales team leaders and invest time in sharing your startup’s culture and values. Make sure there is clear communication.
Additionally, choosing an outsourcing sales agency that provides special training to the sales team members in charge of a client. This training should be specific to the needs and goals of your company. This way, you can make sure that the sales representatives understand your brand, products, and services.
Startups have the freedom to choose on what to outsource. So, it does not mean you will have to give up full control.
Some companies outsource the whole sales program. That means the third-party organization will handle the cycle from prospecting to finalizing a deal. Others opt to outsource only a certain function or some parts of the sales cycle.
To prevent any issues, you have to discuss your requirements with the service provider. Clarify the responsibilities.
Sales come with expenses. That is also true when your company decides to outsource sales.
But contrary to what many people may think, outsourcing does not have to be expensive. Additionally, it would be best to consider the cost-effectiveness of the service.
For instance, managing an in-house sales team includes hiring competent candidates and training them to become experienced sales representatives. You should also take care of their salary and benefits as employees. The company will also have to invest in necessary systems, tools, and infrastructure.
On the other hand, getting an outsourced sales team onboard means the company does not have to do those things. The service provider will take care of training the sales team members. It would also ensure that they have the necessary skills and knowledge. Their experience can also help widen your brand’s reach and increase revenue. All of these will cost the company an agreed-upon fixed rate.
The simple answer to this is yes.
Outsourcing sales helps in a lot of ways. Not only does it give your company access to professionals who practice tried and tested techniques, but you also get a team focused solely on helping your company gain new customers. The sales representatives will not be distracted by other tasks, such as administrative.
Additionally, outsourcing this aspect allows you to commit and focus more on the different aspects of the business.
Like in any other business partnership, there are risks in sales outsourcing. Problems may arise due to miscommunication, security concerns, lack of oversight, inconsistent delivery, and agents’ skills. Miscommunication can lead to misunderstandings about setting expectations and accepted practices.
Fortunately, it is not hard to overcome these. All you have to do is to make sure you choose a reliable service provider. Check if they train the sales team. Do they make sure that the team understands the company, products, and services assigned to them? Ultimately, finding the best sales outsourcing agency will help prevent all of these issues.
As stated earlier, choosing the right service provider is crucial. Finding the right one will help startups maximize return on the outsourced sales.
Look for a third-party organization that is willing to understand your company’s brand and values. They should be able to mesh with the sales strategies you have in place. Additionally, they have to be able to deliver measurable results.
To help you get started, here are some characteristics you should look for in an outsourced sales agency:
Driving revenue is necessary for startups to grow. That means employing a solid sales strategy will be necessary. Fortunately, it is not something that one has to do independently.
Startups can rely on an outsourcing sales service provider. It involves hiring an agency to handle and manage an external sales team. Additionally, it can help create new opportunities, reach new and underserved markets, and generate more leads.
Depending on a company’s specific needs, it can outsource only some sales functions. That means professionals will only be involved in particular steps. Another option is to hire an outsourced sales agency to handle the whole sales cycle for you. If you choose this, make sure you have clear communication to prevent any issues.
To maximize the benefits, it is essential to make sure that your company is working with a reliable third-party organization. Knowing what characteristics to look for and questions to ask can help you find your company’s best fit.