Startup Founders, We Need to Address the Elephant in the Room

Last Saturday, I attended an eChai Ventures startup meet at DevX Andheri (W). It was an enriching experience to meet and interact with a bunch of amazing people - young, ambitious, and full of ideas. But what struck me the most was the number of entrepreneurs who had failed in their startups and were now looking for jobs.

During an engaging discussion with the panelists a critical insight emerged:

?? Most of these entrepreneurs failed because they couldn’t sell well.

?? Even if they had a great product, they couldn’t sell enough to sustain their businesses.

But here’s the thing: failure isn’t the problem.

Mistakes can be corrected. Skills can be learned. The real problem is when people don’t recognize what they need to learn. And in this case, it was sales.

Based on my 23 year long affair with sales and sales management, I told them that, lack of professional selling skills and customised sales systems is one of the fundamental roadblocks in their way to success.

None of these startup founders were ready to acknowledge and introspect. Rather, they went into defensive mode. "But we have years of sales experience from MNCs! We have been doing good? there and we already know well how to sell." That was their reaction.

But, when I asked them a fundamental question about sales, none of them could answer it. ??

One of them could sell on 23 paid app subscriptions in 2 years or so. And another one was just peddling like "CRM le lo CRM" to everyone he bumped into.

It's important to mention here that, these are not some random young guys. They are ambitious, intelligent and serious about making it big in the business world. All of them are highly educated.

Many of them have graduated from IIMs and IITs and the CRM seller was a proud holder of two MBA degrees! But still they are struggling to sustain and grow their startups.?

Their top tier degrees and MNC job experience is not helping them get success in the startup world.

Studies show only 20% of startups survive for more than 5 years and only 8% manage to survive beyond 10 years. As per a study conducted by the Institute of Business Value and Oxford Economics, 90% of Indian startups had failed within the first five years of operation.

However, in the last 16 years of my sales coaching and consulting career, I have witnessed that the failure rate of startups and MSMEs is significantly higher than what these organised studies could find out.

Data from the official CII website states that, 99% of those who survive and see some initial growth tend to face slow-growth, stagnation and de-growth after a few years. (See the image below)

Why Do Degrees and Experience of Founders Fail in Sales?

Here’s the harsh reality: Just because you’ve closed a few deals or worked at a big company doesn’t mean you’re a sales pro. Your experience may not necessarily equal your skills.

Think about it:

• An engineering degree doesn’t automatically make someone a great engineer.
• A management degree doesn’t guarantee leadership skills.
• Similarly, working in sales doesn’t mean you’ve mastered selling.

Sales is not a job title. It’s a skill. And it’s a skill that needs continuous sharpening. ??

The Hidden Gaps in Traditional Sales Experience

Many salespeople believe they are great just because they have been in the industry for years. However, real mastery in sales comes from deliberate practice and constant improvement. Here’s why experience alone isn’t enough:

? Industry Changes Constantly – What worked five years ago in sales may be outdated today. The way customers buy has evolved, and salespeople need to keep up.

? The Comfort Zone Trap – Many experienced salespeople rely on outdated tactics because they have worked before. But in today’s competitive market, old methods often don’t work as effectively.

? Lack of Measurable Skill Improvement – Many sales reps don’t track their performance. Without measurable feedback, it’s hard to know where they need to improve.

Why Do Successful Ex-MNC Sales Pros Struggle as Startups Founders?

Many sales leaders thrive in their MNCs jobs. But when they become startup founders, they struggle real hard in selling - even they're selling what they are truly passionate about. Why?

1?? They Sell with a Brand Name, Not Their Skills – Selling a Tata or Asian Paints product is easier because the brand is trusted. But can they sell an unknown startup’s product with the same confidence? Many can’t.

2?? They Depend on Process, Not Adaptability – MNCs provide a structured sales process, marketing support, and pre-qualified leads. Take those away, and many sales reps feel lost.

3?? They Avoid the Hustle of True Sales – In a big company, the system brings customers. In a startup, you must hunt for them. That’s a different ballgame.

What Really Makes a Sales Pro?

If degrees and years of experience don’t make you great at sales, what does?

Here’s what truly separates sales champions from the rest:

? A Growth Mindset – Sales is constantly evolving. You must be willing to learn, adapt, and refine your approach.

? Deep Understanding of Human Psychology – Customers don’t buy products; they buy solutions. The best salespeople understand pain points, desires, and decision-making triggers.

? Relentless Practice & Execution – You can read 100 books on sales, but if you don’t practice your pitch, handle objections, and close deals daily, you won’t improve.

? Resilience & Grit – Sales isn’t easy. You’ll hear more “no’s” than “yes’s.” The ones who succeed are those who keep going, refining their approach every time they fail.

? Continuous Learning – The best salespeople invest in learning from experts, training programs, and mentors.

?? In short, the best sales professionals don’t rely on past experience - they sharpen their skills every single day.

Top 3 Reasons Why Most Startups Fail to Sustain and Grow?

Startups fail for many reasons, but the biggest one is lack of sales.

?? Focusing Too Much on Product, Not Customers – Many founders spend years perfecting a product but never validate if there’s demand and if there's enough big market.

For example: Two of the startup founders I met at the eChai event are trying to develop a tech product that wants to reduce insurance premium of gig workers. When I asked, they said they didn't know what is TAM all about!

?? Not Understanding the Market – Just because you have a great idea doesn’t mean people will buy it.

For example: I know of a lady that's an expert in food and micro-biology is obsessed about creating market for a Japanese fermented drink called 'Kombucha' in India.

A few months back they offered the samples at eChai. Sadly, almost nobody liked its due to it's strange flavour. With not enough marketing budget, needless to say, they are still struggling hard (or I bet they do).

?? Not Hiring the Right Sales Team – If your first few hires can’t sell, your startup is doomed. Most startup co-founders focus on building teams consisting of people from tech, finance, ops and marketing backgrounds.

They are so obsessed with the product and tech that they forget the fundamental aspect of business - the sales part of it.

My Final Thoughts: Sales is Your Business Lifeline; Make it Your Top Priority!

Having trained over 1,50,000 people, mostly sales professionals and entrepreneurs I’ve seen countless businesses struggle because they underestimated the power of sales. The startups that thrive are the ones that invest in sales skills early on.

?? Ratan Tata puts it simply, "None can destroy iron, but its own rust can!" In the same way, a business doesn’t fail because of competition - it fails when it doesn’t sell enough.

So, whether you’re a startup founder, an MNC sales pro, or an aspiring entrepreneur, here’s my advice: Master sales. Master success.

?? Stop relying on degrees and job titles. Learn, build and execute sound sales systems. Build your own customized sales systems and processes. That’s the only way to win in sales and succeed in business!

Want to know where exactly do your sales department stand in terms of sales capability today? Try this Sales Capability Assessment Tool and get the instant sales health score in just 5 minutes!

Like this article? Repost it to help more startup founders and MSMEs.

See you in the next edition of Sales Game Changer newsletter.

~ Ashish ??? Mudra

Sales Transformation Coach

Transforming people into performers since 2009