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What Makes a Good LBO Candidate
Discover the key financial, operational, and strategic traits that make a company an ideal Leveraged Buyout (LBO) candidate in this comprehensive guide.
As a founder just starting out in sales, your sales process often will look different than a seasoned sales team. Here are some of the key things that make founder-led sales unique:
When you are the only one selling, you have the full context of every sales conversation and can connect insights across your different prospect calls. Use this to your advantage by using customer feedback, taking note of objections that come up repeatedly in sales calls, and adjusting your messaging. Look for common pain points across your prospects to improve product-market fit.
Founders typically start off with a simple or non-existent sales process. As you make your first calls and demos, document what is working and standardize a basic workflow for future sales call. For example, you may want to develop a pre-call questionnaire, demo script, pricing tiers, and follow-up cadences. Having a documented sales process, even if basic in the beginning, will help you scale.
Demo calls are your opportunity to showcase your product and have an interactive conversation. Prepare by outlining the key points and benefits you want to convey. Make sure to balance product features with listening - your goal is to understand the prospect's needs and how you can provide value. Focus on nailing your demo narrative and flow first before moving to advanced demo techniques.
Transitioning from a startup founder to a sales rep requires some key mindset shifts. As a startup founder, you're used to building products, not selling them. Developing a growth mindset, mental toughness, and a focus on constant improvement will help you thrive in your new sales role.
Approach selling as a learnable skill, not a fixed ability. With practice and perseverance, you can improve at prospecting, pitching, handling objections, and closing deals. Don't let the early days of rejections or 'nos' discourage you. See them as opportunities to learn and improve. Celebrate small wins and focus on progress vs perfection.
Sales require dealing with constant rejection and hearing 'no' from prospects who aren't a fit. Build resilience by reframing rejection as a numbers game. Only some prospects will be interested, no matter how good your product is. Let rejection roll off your back and keep moving forward. Develop routines to manage stress and bounce back from difficult days.
Be a student of selling throughout the early stages of your career. Read books, take courses, listen to podcasts, and learn from mentors. Analyze both wins and losses to identify areas for growth. Role play pitching and objections to sharpen skills. Commit to daily practice and tracking activities, not just results. Success comes from the compound effect of small improvements.
Don't expect overnight success or massive deals immediately. Building a sustainable funnel takes time. Set realistic targets for calls, demos scheduled, and pipeline generated based on your product and market. Avoid comparing yourself to more seasoned salespeople and other startup founders. Focus on improving sales efforts against your own metrics week-over-week. Celebrate small wins while pursuing bigger goals.
Before you go to market strategy or even think about pitching your product, you need to understand what makes it unique and valuable to potential customers. As a founder, you'll craft the positioning and messaging your future marketing and sales teams will rely on.
With clarity on positioning and messaging, you'll be equipped to start baking your founder-led sales narrative. Make sure your pitch aligns closely with the product's intended use cases and audience.
When you're getting started with founder-led sales activities, having the right sales materials can make a big difference in effectively communicating your value proposition and sales efforts to potential customers. Here are some of the key materials you'll want to create:
One-Pagers
A one-pager is a single-page document that provides a high-level overview of your product or service offering. It should focus on articulating the core benefits and differentiators. Make sure to highlight customer proof points like logos and testimonials.
Demos
Crafting an effective product demo is critical for founder-led sales. Take the time to script and practice your demo flow. Make sure you can clearly articulate your product's capabilities and how it solves real customer needs and pain points. Focus on tailoring the demo to your prospect's specific needs.
Presentations
In addition to a demo, you may need a more in-depth presentation to walk prospects through your solution. This is especially important for those selling directly to enterprise prospects. Make your presentation visually compelling and focus on conveying your value prop.
Email Templates
Having email templates ready for prospecting outreach and following up with your sales team reps after conversations will maximize your productivity. Create templates for the first outreach, schedule demos, send pricing, and follow up post-meeting.
CRM
Using a CRM is vital for tracking your prospects and customers in one centralized place. Make sure to log all your prospect interactions and track deal progress. Popular CRM options include Salesforce, HubSpot, and Pipedrive.
Investing time upfront in creating polished sales materials will pay dividends. These materials help you efficiently communicate your company's value, grow your offering, and progress opportunities through the early stage of the sales funnel.
As a founder making those initial sales, prospecting for initial revenue from potential customers is critical but can feel daunting when you need an existing sales pipeline to tap into early-stage sales. Here are some strategies for finding those first customers:
Clearly define the target customers and verticals that best fit your product. Resist the temptation to be everything to everyone early on.
Develop detailed buyer personas that outline your ideal customer's role, goals, challenges, and buying criteria. This will help you craft targeted messaging.
Identify where your ideal customers are most active online for targeting outbound campaigns. Look at communities, forums, publications, etc.
Make a list of companies that fit your ideal customer profile. Start with ones you have existing relationships with or warm introductions to.
Use tools like LinkedIn Sales Navigator to search for additional target companies based on criteria like industry, size, tech stack, etc.
Compile a spreadsheet of contacts at each target account for outbound messaging. Identify key roles like product managers, engineers, CXOs, etc.
Respond promptly to inbound sales inquiries coming in through your website, events, referrals, etc. These leads are already engaged.
Ask happy early customers for introductions and referrals to similar companies or contacts. This provides social validation.
Follow up on any referrals ASAP while interest is warm. Mention the mutual connection to start conversations.
When you're a new company doing founder-led sales, prospect outreach is key for filling your sales pipeline. As a top founder-led sales, you need to craft compelling outreach messages that capture attention and make prospects want to learn more.
Your prospecting outreach should be personalized and demonstrate you understand the prospect's needs. Highlight your product benefits that align with their goals or pain points. Keep the message concise while showcasing your expertise.
Avoid generic sales pitches. Research the prospect's role, company, and industry to tailor your message. Use language that resonates with their business objectives. Focus on the value you can provide, not just product features.
Include clear call-to-action in your outreach to direct prospects to your website, online demos, or other helpful resources. Provide links to make it effortless to access relevant materials.
You want prospects to be able to self-educate and move down the funnel. Make sure your website has explanatory content, product brochures, case studies, sales collateral, pricing, and contact forms. Optimize these assets for mobile-friendliness and quick loading.
Once a prospect expresses interest, aim to schedule a 30–60-minute discovery call or product demo. Confirm their availability in your reply and send a calendar invite.
Come prepared with an agenda tailored to what you know about their needs. Ask smart questions to understand their challenges and objections better. Position the next conversation with your solution as the answer. Close by summarizing the value proposition and next steps.
Set a goal for each call, whether for sales conversations determining product fit, generating excitement, or identifying the decision-maker. Track results to refine your demo and messaging.
In the early days as a founder-led startup, you need to make it as easy for interested prospects to find you and learn about your offering. Optimizing your website and digital presence for lead capture will help you gather those critical first inbound inquiries that drive growth further.
When you do start to get inbound leads, you must have a system in place to respond quickly. Nothing is more frustrating for a potential customer than reaching out for information and never hearing back. Set a goal to respond to all inquiries within 24 hours, if not sooner.
It's also important to qualify each inbound lead. Just because someone reached out does not automatically mean they are a serious buyer persona and a good fit. Ask targeted questions to understand their needs, challenges, and budget. This will help you determine whether you should invest time pursuing them as a potential sale. Don't get stuck wasting effort on prospects that will never convert more deals.
Stay focused on the leads that align closely with your ideal customer profile. Provide these promising inbound prospects with helpful information on your offering. Seek to move the conversation forward and get them to the next step, such as a demo call or trial signup. With persistence and excellent follow-up, inbound leads at an early stage can become your earliest evangelists.
When you're doing founder-led sales, one of the most important skills is being able to pitch your product effectively and handle objections during demos and presentations. Here are some tips:
Once you've had initial conversations with qualified prospects and given your demo presentation, it's time to focus on the down-funnel selling process with potential clients. This iterative process involves having more detailed discussions with potential clients, around pricing, next steps, negotiating contracts, and ultimately closing the sale.
After capturing interest with your demo, start to have more in-depth pricing conversations. Explain your pricing model and packages in detail. Ask questions to understand the prospect's budget and expectations. Be prepared to discuss payment terms, contract length, onboarding timelines, implementation plans, and other next steps. Provide any requested quotes, agreements, or paperwork. Use this pricing discussion to gain commitment and move the deal forward.
Don't view negotiation as a battle. Approach it with a win-win mentality. Uncover the prospect's motivations and constraints. Be willing to negotiate on terms, concessions, or additional services to create an appealing offer. But don't negotiate just for the sake of discounting. Hold your position on the core value you provide. Negotiation is a normal part of business deals. Maintain a friendly, trust-based tone.
Once terms have been negotiated, directly ask for the business. Have a specific call to action prepared. "Are you ready to get started with our [package name] monthly plan?" Listen for any final objections. Address concerns professionally and reassure the prospect. Convey confidence in your offering. If needed, allow time for the prospect to go to market or confer with other decision-makers. Follow up promptly to answer final questions. Gain commitment for the next step, whether it's a verbal agreement, signed contract, or deposit payment. Persistence pays off.
Ensuring your customers find success with your product is critical for founder-led sales. The goal is not just to close deals but to build relationships and create a huge network of happy, referenceable customers that drive your company to sustainable growth through referrals, expansions, and renewals.
After closing a new customer, immediately focus on onboarding them properly. Create a smooth transition plan and assign them a customer success manager. Spend time on deeply understanding their use cases and goals, and onboarding them onto your product. Provide training resources and documentation to get users up to speed quickly. Monitor product adoption across the account and check in regularly to resolve any issues.
Ongoing success plans involve quarterly business reviews, executive business reviews for larger accounts, and regular touchpoints based on the customer's needs. Use these interactions to continually add value to prospective customers by providing product tips, new feature announcements, or offers to help optimize their usage. Look for opportunities to expand by adding more users or products.
As renewal approaches, start the conversation early and make the process easy. Highlight the value they've seen from your product and any new capabilities. Offer incentives or discounts for multi-year renewals. Use customer feedback, testimonials, and case studies to reinforce customer satisfaction. For any accounts at risk, negotiate with decision-makers to save the renewal.
The founder's role in ensuring customer satisfaction, sustainable growth, and success is providing VIP treatment to top accounts, resolving escalated issues, and maintaining executive relationships. This engagement, care, and reciprocity turn customers into vocal advocates who drive referrals, case studies, and organic growth.