In part three of his series on the first sales hire in seed-stage B2B SaaS, Mads Jensen sets out six things to test candidates for, from experience at your ACV and stage to seniority, and how their importance varies by role.
- The post distinguishes three first-hire profiles: the Account Exec, the Sales Lead and the Pathfinder.
- The six things to test are selling at your ACV, operating at your company stage, team building, knowledge of your customers' industry, comfort with startup chaos, and the right seniority.
- The best test is to have candidates walk through, in detail, how they solved specific problems in relevant situations.
- For a sales leader, understanding your stage matters most: growing a big-company division from $10m to $15m is nothing like taking a startup from $0 to $1m.
- Recommended seniority is junior to mid for an Account Exec, mid-level for a Pathfinder and mid-level to senior for a Sales Lead.
Getting the first sales hire right in seed-stage B2B SaaS – part 3 (what)
Once you’ve decided to hire, what should you be looking (and looking out) for?
Who is the ideal hire?
You’ve now decided which profile to hire:
- Account Exec -to implement a sales playbook already developed by one of the founders
- Sales Lead – to help the founders systematize prior sales work into a playbook
- Pathfinder – to bring enterprise sales capability into the team and land the first lighthouse accounts
You also know that the timing is right, because you have at least an MVP.
But how do you make the right hire?
6 things to test for:
Do/are they:
- Know how to sell at your ACV?
- Know how to operate at your company stage?
- Know how to build a team?
- Know your customers’ industry?
- Comfortable working in a semi-chaotic startup environment?
- Of a seniority that’s right for the job?
How to test and interpret the results
The best way to test is to ask candidates to talk you through how they have solved specific problems in relevant situations in the past. Go into lots of detail. And use the guide below to interpret the results:
How to sell at your ACV
Deal size is closely aligned with the sales process. If you need someone who can hit the ground running, look for reps who’ve sold at your price point before.
How to operate at your company stage
If you are looking for a sales leader, almost nothing is more important than whether they get the stage you are at. Taking a division of Bigco from $10-15m is nothing like taking a startup from $0-1m. Nothing.
How to build a team
If you are looking for a leader to build your team, look for someone who has seen how it is done at a successful company. Doesn’t need to have been the VP. Better if it was number 2.
Your customers’ industry
If you are looking for a pathfinder, customer empathy goes a long way. On the other hand, Account Execs can quickly learn an industry from the existing revenue leader.
Comfortable working in a semi-chaotic startups environment
Your candidate might have had a long and successful career at Bigco. But startups are just different. Make sure the person you hire can cope with chaos.
Of a seniority that matches the job
It is as easy to hire too senior as too junior. Account Exec, go junior to mid, Pathfinder, mid-level, Sales Lead, mid-level to senior.
Below there is a matrix mapping importance to the roles:
| Role Type | ACV | Stage | Team Building | Industry Knowledge | Startups | Seniority |
|---|---|---|---|---|---|---|
| Account Exec | L | L | L | L | M | Junior to Mid |
| Sales Lead | M | H | H | L | H | Mid to Senior |
| Pathfinder | M | H | L | H | H | Mid Level |
Now you’ve mapped out who to target and what to test for.
Tomorrow I’ll look at common pitfalls.
Frequently Asked Questions
How should I interview candidates for a first sales hire?
Ask them to talk you through how they solved specific problems in relevant past situations, in lots of detail, then interpret their answers against the six criteria in the post.
What is the difference between an Account Exec, a Sales Lead and a Pathfinder?
An Account Exec runs a sales playbook a founder has already developed, a Sales Lead helps founders turn prior sales work into a playbook, and a Pathfinder brings enterprise sales capability to land the first lighthouse accounts.
Does a first sales hire need to know my customers' industry?
It matters most for a Pathfinder, where customer empathy goes a long way. Account Execs can learn the industry quickly from the existing revenue leader.