One of the biggest mistakes that companies make when entering the U.S. is hiring a local salesperson to initiate the first sales. There are numerous reasons why this approach often fails:
A Short Path to Failure
- Starting from Zero: Local sales reps begin without customer stories, institutional knowledge, or experience relating to your target buyer about your “best fit” solution.
- High Demand and Expense: U.S. sales reps are expensive and in high demand. If they don’t see success quickly, they often move on to the next opportunity.
- Lack of Support: New market entry requires support from key departments in the home office—sales, marketing, operations, etc. Without strong relationships, authority, and gravitas, it can be difficult for the local sales rep to command the necessary support. It can be a lonely and unproductive endeavor.
Difference Between Selling and Discovering a Repeatable Process: There is a significant difference between making a sale, finding the first customer, and discovering a repeatable sales process. Starting your U.S. sales effort by hiring a local sales rep is akin to hiring someone to drive your car but asking them to build the car and the road first.
The Magic of Founder-Driven Sales
Founder-driven sales bypasses these challenges and ensures a higher likelihood of success in the initial phase of U.S. expansion. The founder has all the history and can relate the company story in a way that no new hire ever could. Founders also have the necessary gravitas back at the home office to break through the inevitable issues that come with supporting a new U.S. office.
The founder’s time in the U.S. might start at two weeks per quarter and incrementally grow as demand and opportunity increase. This phase of founder-driven sales continues until a repeatable sales process is established, tested by hiring one salesperson who can make sales on their own. Typically, this initial phase lasts between 12 and 24 months.
US Market-Entry Sales Stages
A simple way to look at the best path to scaling sales in the US is that you will go from
- Phase Zero: This is analogous to a dirt path. The initial sales are difficult and the path is circuitous. The team refines prospect targeting, modes of awareness building, and communication.
- Phase One: A straight single-lane paved road. There is a dense base of customers. A repeatable sales process has been established. The first sales representative can now be hired. Phase One continues until the first sales representative has established a similar dense base of customers. They focus on a new region or industry vertical.
- Phase Two: Now it’s time to build the Autobahn! With the success of the first sales representative, additional sales representatives and sales teams can be hired to expand sales. You can expand increasingly to new regions and industries.
Founder-driven sales also emphasize the importance of personal relationships and trust-building in the early stages of market entry. The founder, as the face of the company, can directly address customer concerns, negotiate deals, and foster long-term partnerships. This hands-on approach not only helps in making the first few critical sales but also lays a strong foundation for future growth.
How to Get US Sales Traction Resources
For more on this topic, we suggest reading The 3 Truths of Gaining U.S. Sales Traction
About
MEET helps international B2B & B2G companies gain traction and scale in the U.S. through trade shows, events, and strategic connections. Contact Bill Kenney for a no-obligation conversation: bill@meetroi.com or +1 (860) 573-4821.
