Should Your Agency’s Sales Function Be Founder-led or Team-led?
The debate of founder-led versus team-led sales in agencies unveils the crucial balance between founder involvement and team autonomy in client acquisition. Founders often tap personal networks for initial business growth, leading to short-term success but long-term limitations. Over-reliance on the founder hampers scalability and sustainability.
Shifting to a sustainable sales strategy, including a clear founder-led vision, collaborative culture, and balanced investment in internal growth, becomes pivotal. Nurturing a self-motivated team aligned with the agency’s vision is key.
Recognising the founder’s role as a leader, not just a doer, and delegating tasks ensures future-oriented growth. Adopting these strategies, even late in the agency’s journey, promises a more successful outcome, according to Adam Graham, Founder & MD of Gray Matters, a consultancy that helps B2B businesses of various sizes.
What Sales Is and Isn't.
When it comes to growing an agency, as the founder, it can be challenging to determine how hands-on or hands-off you should be in acquiring new clients. Should you take charge, or is it someone else’s responsibility? Before delving into what agencies should be doing, it’s crucial to differentiate what sales is and isn’t.
Many founders start businesses because they want to do more of the work they love. They leave established agencies to make it on their own. However, having never run a business before, the first instinct is often to reach out to their immediate network, including friends, family, past colleagues, old clients, and LinkedIn connections, to pitch their business. This approach helps validate the proposition in the market and refine the offering. Sales start to come in, and referrals grow. In the short term, this method appears effective and fruitful.
While seemingly a good starting point, this approach can be a double-edged sword. It’s a gift because it generates some revenue, but it can also be a curse because it gives a false sense of security in perceived sustainable sales.
The cracks in this strategy usually become visible around three to five years into the business journey. This is when new business starts to slow down, and referrals become less frequent. Panic sets in. What should you do now? You’ve tapped your network to its limit, and returning to the same people isn’t an option. The pressure intensifies, especially when you’ve hired staff during the ‘sales boom’ phase, and now you’re responsible for others’ livelihoods and financial well-being. The need for more sales becomes a pressing demand, creating stress and a sense of desperation as it becomes a necessity.
Paving A More Promising Future Through Sustainable Habits
The key distinction between this approach and what truly works is the need for a sustainable sales strategy. Ideally, it’s better to hit the ground running from day one, but life never goes to plan. If you find yourself reading this and kicking yourself because you’re well into your fourth year with your agency and recognise the scenario I’ve described, don’t fret. It’s never too late to develop and integrate more sustainable habits into your business, redirecting your path toward a more promising future.
The challenge with an unsustainable sales scenario is its heavy reliance on a single person, often you—the founder—who holds the entire vision, charges for services, and sells the concept, leaving the rest of the team in the dark. But what happens when you’ve exhausted your personal network and need to scale? How do you get your team on board to sell effectively?
3 Pillars For Avoiding The Founder's Trap
The critical issue here is that vital components such as the business vision and strategy exist solely in your mind; they’re not documented, and no processes have been created to make the system duplicatable. This marks a significant turning point where your agency needs to shift its approach.
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Developing a founder-led strategy
You will always be your biggest advocate because of your passion for your concept. However, not everyone will communicate about your business as you do. What you’ve created is your life, your source of income—it's not just a job, but your heart and soul. Passion is key for a successful salesperson, especially for your own business, as it's irreplaceable. When pitching to those who know, like, and trust you, there's a risk of a false sense of security. Commercially, this is detrimental to your pipeline.
Moreover, complacency can lead to shock when investing in real infrastructure. A substantial investment to improve can be jarring if you've survived on a tight budget for years. As a business, comfort has set in, and now it's necessary to invest in building a sustainable and successful sales ecosystem with the right systems and processes.
To counteract the security from selling to familiar connections, shift focus to a sustainable sales strategy led by a clear founder vision. This involves defining your agency's market position and maintaining focus. By clarifying your audience, services, and value, you can effectively communicate this vision to your team and inspire them to achieve your goals.
Fostering a collaborative culture and self-motivated workforce
Sales is a culture, not just a job, encompassing various aspects of a business. Your digital channels, online presence, offline efforts, team reputation, and business relationships intertwine. To succeed, communicate your vision clearly to your staff, inspiring them to work towards your goals. Your team needs to know where you're heading and how to get there, or motivation will falter, and the business will drift.
Your company vision shouldn't just focus on financial gain; it should inspire your team, clients, and prospects to be part of something bigger. By defining your purpose and the impact you want to make, you attract those who want to join that journey. This is how you harness your team's passion to drive your business, and when everyone feels responsible for growth, the company thrives.
Making time for and investing in your agency with the same priority as a client
It’s easy to feel subservient to clients and overextend yourself. However, remember you are also a client of your agency. Dedicate 10-20% of your agency’s time to your own business. Create processes for your team to ensure agency growth and sustainability, just as you do for clients. This approach ensures a steady pipeline and prevents relying solely on your efforts.
Decide whether to deliver the work or steer the ship. As the founder, focus on leading, setting the vision, inspiring your team, and onboarding clients. Delegate and let others take ownership for your company to grow. Understanding your strengths and building a team to support them is key to successful management.
Regardless of team organisation, have someone focus on the present and someone on the future aligned with your vision. Both roles are essential for thriving sales. Choose your focus and delegate the other. Shift towards a sustainable sales strategy early, and remember, it's never too late to develop these habits and guide your agency toward success.
“When you define your purpose, and the impact you want to make on the world, you start to attract the people who want to be part of that journey.”
