As a startup founder you should ensure your sales staff are aligned to the success of the business - not just revenue goals.
Revenue maximising can sometimes conflict with profit maximising.
Its okay to emphasise revenue in the early days. But sooner or later your business needs to be profitable!
Revenue focus can cause the following challenges with sales staff:
- Sales staff are inclined to oversimplify deals in order to keep the wheels turning, ignoring risk factors that will “bite the company in the bum” down the track.
- It is easier to leave money on the table to achieve revenue growth. This is because getting fairer deals require more effort to negotiate and ads risk to closing the deal!
So be aware of these issues. Changing from revenue to profitability focus is a good challenge to have as your business expands!