Inside sales activities include selling products or services via phone calls, emails, LinkedIn, or other online communication channels. Many businesses believe that handling these activities in-house will save them money and get better results. This, however, is not the case for new businesses or startups.
As they may lack the tools, personnel, or expertise required to generate leads, qualify them, and convert them into customers. Furthermore, managing inside sales activities can be a distraction from other critical business areas such as product development, marketing, and customer service. It can consume valuable time and resources to determine the best approach, then draft emails, train for cold calls, and so on.
On the other hand, let’s look at what are the advantages of outsourcing sales activities:
1. Cost Savings: It’s a cost-effective way for startups to access the expertise and resources they need without the expense of hiring a full-time team.
2. Access to Expertise: They have a wealth of experience in sales and business development, and can provide valuable insights and strategies that can help startups succeed.
3. Scalability: An outsourced sales team can be easily scaled up or down to meet changing business needs. This makes it easier for startups to respond to market changes and grow their business.
4. Faster Time-to-Market: Outsourcing can help your startup to get your products or services to the market more quickly, as you can leverage the expertise and resources of the outsourced team.
5. Focus on Core Competencies: Startups can focus on their core competencies, such as product development, while leaving sales and business development to the experts.
According to a study by the International Data Corporation (IDC), businesses that outsourced their sales and marketing functions experienced an average revenue growth rate of 31.2%, compared to businesses that did not outsource these functions, which experienced an average growth rate of only 7.5%.
Not that you know of the advantages, what are the factors that you should consider while outsourcing sales? The following points will help you decide:
1. Reputation and Track Record: It's important to work with an outsourced sales team that has a good reputation and a track record of success.
2. Industry Expertise: Look for an outsourced sales team that has experience in your industry and can provide valuable insights and strategies.
3. Communication: Communication is key when working with an outsourced sales team, so make sure you have a clear understanding of how communication will be handled and how often.
4. Goals and Objectives: Make sure your outsourced sales team understands your goals and objectives, and that they have a plan for achieving them.
5. Performance Metrics: Establish clear performance metrics and expectations for your outsourced sales team, and monitor their performance regularly to ensure they are meeting your goals.
Overall, outsourcing sales and business development can be a smart strategy for startups looking to grow quickly and efficiently. By working with an experienced and reputable outsourced sales team, startups can focus on their core competencies while leveraging the expertise and resources of the outsourced team to drive sales and business growth.