You probably need to hire an SDR.

EARLY-STAGE TECH companies spend a lot of time selling. That’s hardly surprising—businesses need clients or customers—but in the highly competitive tech space, customers serve as a kind of validation. After all, it’s hard to convince the world that you’ve developed a great product when no one appears to be interested. And this also has implications for scaling: selling is a major agent of growth in those businesses ready and hoping to move to the next level.

B2B businesses have an especially difficult time of this. According to B2B Sales Benchmark research by Salesforce, the average time for conversion from lead to opportunity is 84 days, and the average conversion rate is 13 percent. Of that 13 percent, less than 1 percent of total leads end up becoming customers. And we can assume that, since the research describes companies across the board, early-stage companies have an even rockier ride.

Typically in those early years, founders or co-founders play a major role in selling. They might have another person juggle their usual duties with sales as well. But in the medium to long-term, the shortcomings of this approach become impossible to ignore. For one thing, both have responsibilities that require their full attention. And, since outbound lead generation is the simplest area of sales to leave until last, it generally is. Companies, therefore, are always on the back foot.

The obvious solution to this problem seems simple: hire a salesperson. But this is easier said than done. There is a supply-and-demand problem that is especially prevalent in the B2B space, in that, though many companies are looking, great salespeople are hard to find. As a result, salespeople with even just a year of selling experience command high base salaries (to say nothing of commission). Startup businesses therefore have to take a risk: make a hefty investment in someone experienced, or try to bring in someone inexperienced and develop them.

Those who take the latter approach have much of their work still ahead of them. Sales requires a particular set of personality traits and skills, as sales acceleration specialist Ben Wright explains. He looks for ‘work ethic, attitude, intelligence and “coachability”’ but urges businesses not to underestimate the importance of curiosity, adaptability and a willingness to listen in salespeople. These are the foundational qualities you hope to find even in those expected to ‘grow into’ a new role.

Even hiring experienced salespeople has drawbacks, however. The problem faced by early-stage companies isn’t so much about the speed at which the sales are made but the availability of outbound leads right at the top of the sales funnel. To create a conveyor belt of outbound leads, what you need is a sales development rep.

The most cost-effective time to hire an SDR is generally when there are two people already selling. Fundamentally it’s a proactive role involving the constant pursuit of new leads, and as a result the companies which have an SDR move from a position of relative weakness—sealing deals, perhaps, but never completely confident of where the next potential customer might come from—to one of strength. Needless to say this has positive implications for a business's ability to make accurate predictions and forecasts. It also gives the founder, CEO and other high-value and senior company people the security of knowing that the lead pool won’t dry up.

With someone exclusively responsible for prospecting, other salespeople can focus their attention not only on closing deals, but on follow-ups, cross-selling, upselling and engagement with new customers. The division of labour between the ‘finder’ and the ‘closer’ has an almost immediate impact on productivity and growth.

What’s more, the SDR’s contribution to the bottom line (and therefore value to the overall business) is refreshingly clear to see. And though you’re throwing someone new into the mix, an SDR actually simplifies the entire sales process, simultaneously keeping the pipeline full, scrubbing it clean of dead or irrelevant leads, and allowing specialisation.

An SDR, then, is a major agent of productivity and growth. It’s a role that ensures new customers and therefore validation to other, potential customers, as well as investors. Hiring an SDR is simply the most cost-effective way to optimise the sales arm of your business, and for early-stage companies, this is especially important. It means (slightly) less stress for those at the top as well.

If you're ready to take the next step, find out how JobLab can get you 10 pre-screened SDR applicants within one hour. Get started here.