Startups and even growing companies can often forget the importance of setting realistic sales goals when trying to grow in the B2B space. Very few companies go viral and experience explosive growth. Most of the time, growth comes through hard work and consistent effort over a sustained period.
The Startup Dream
Many entrepreneurs have visions of grandeur and ambitious growth plans, often over a short period of time. We’ve seen this before with firms setting goals for $1 million in sales revenue in Year 1, even when they currently have $0 and no sales funnel . They create impressive spreadsheets showcasing explosive product uptake and quarter-over-quarter growth. While these numbers may look great in a PowerPoint presentation, they are often impractical and fail to reflect the realities of the B2B sales process. This highlights the importance of setting realistic sales goals to avoid disappointment and wasted effort.
Overconfidence in Growing Companies
Growing companies can also fall into the trap of believing that a little extra effort will lead to explosive growth or that their established presence will make growth easier. While this may occasionally be true, in most cases, consistent effort over time is required to achieve growth. This is especially true when trying to penetrate a new market segment or launch a new product. Again, the importance of setting realistic sales goals cannot be overstated, as it helps align expectations with the actual effort required.
It Starts Small
In reality, when you successfully convert a prospect into a customer, they often won’t go “all in” right away. Instead, they’ll want to test you out first.
We work with a number of startups, and in most cases, prospects prefer to test-drive the software or product for a short period to get a feel for it and understand the work involved in using it. From the customer’s perspective, there are real risks involved. Can the product be trusted to deliver on its promises? What happens if the startup providing the solution goes out of business? These are valid concerns.
Even for companies with an established track record, the process is often the same. For example, we have a client with a product in the design and construction market. Although the product has been globally available for 25 years, it is relatively unknown in North America. When prospects show interest, a small pilot program is often the best way to build trust and provide a tangible experience with the product.
Be Realistic
Whether you’re a startup or a growing company, remember that in most B2B sales situations, it takes 6 to 18 months to close new business. The importance of setting realistic sales goals lies in understanding this timeline and aligning your expectations accordingly. Start with the basics – qualification calls, meetings, and proposals. Based on these activities, you can build your sales funnel and establish realistic timelines to achieve your revenue goals.
Need Help with B2B Sales?
If you’d like assistance with your B2B sales efforts, our team at VA Partners can help you build and execute an outbound sales strategy that delivers results.
Contact us today and start driving more revenue!
