A lot of new companies decide to go after the ‘elephant’ and blow their brains out doing it

I started selling in the mid-1980s, by accident, really. I was hired right out of university to sell products for American Hospital Supply. They wanted to implement a new automated order entry system solution and I wound up launching the program for them. From there I moved on to selling departmental solutions.

I worked in that space for six-and-a-half years, then moved to London where I sold manufacturing and distribution solutions in the MRP2 days.

Then I went to Descartes, where I worked on the transportation logistics side in selling and sales management for another six-and-a-half years.

Can you talk about your experiences at early-stage companies?

I wanted to work for an early-stage company because I’d learned so much that I wanted to apply to helping get a new company on its feet. I wanted to make decisions about how to run the business and how best to serve the employees and customers. So from Descartes I moved to Covarity in 2004.

What was the situation at Covarity when you started?

Be prepared to structure deals for the way your customer wants to buy

What was your next move?

From there, we moved to building out our applications. We asked, “What do we need to do to expand our footprint and functional capability to support our clients?”

A lot of new companies decide to go after the ‘elephant’ and blow their brains out doing it. They don’t have the necessary support to get the big deals done. We started with the little guys and made sure they were happy before moving on. We secured a deal with a Schedule 2 bank (Laurentian), then moved to Schedule 1 banks. It took 15 months to get RBC and HSBC signed, which was okay because we had other paying customers. But if you try to do that right out of the gate you can flop.

Putting a package together is fun but it takes a creative thinker. And that’s where lots of sales people fall down: they get into rote thinking.

Start by identifying a couple of key anchor customers that you can get your arms around — you really need more than one. In any business I’ve worked in, that’s been critical. Without references from well-known clients, no one wants to work with you.

They should be clients with whom you can build strong long-term relationships; they must understand what you expect from them and the extra service they’ll get in return. Our key clients have become important spokespeople for us and they’ve been instrumental in driving production requirements.

What’s your approach from an on on-the-ground tactical perspective?

Be prepared to structure deals for the way your customer wants to buy. If you’re selling to someone who doesn’t want a sub deal, you have to figure out how you can get recurring revenue over the life of the agreement, while accommodating the client.

One way is through term licenses rather than perpetual licenses. With term licenses the client pays in advance every six months or annually.

As you move up-market there is greater resistance to sub deals. However, these companies are very accepting of term licenses. And once you have a couple of larger clients, you can start to get a true model for the way you want to do business.

I use a personality test for sales people, which is a very accurate predictor . . . in one case, it turned up someone who’d sell his own mother. We didn’t hire him.

Managing relationships, both within and outside the company. In early-stage companies, the manager deals directly with clients. Company insiders must understand what you’re doing and how you can all work together to achieve your goals.

What makes a good startup salesperson?

Persistence, good organizational skills, the ability to manage relationships, and creativity. It takes a certain kind of person to understand the buyer’s business requirements and figure out how to package the solution in a way that meets the needs of both parties. Putting a package together is fun but it takes a creative thinker. And that’s where lots of sales people fall down: they get into rote thinking.

In my experience there are two sets of traits. You can teach people the market and the product, but lateral thinking, like good inter-personal skills, is innate.

How do you go about finding good startup salespeople?

The best way is through your network. Get out the Rolodex or call everyone you’ve ever worked with.

I use a personality test for sales people, which is a very accurate predictor. Someone may interview very well but the profile often turns up hidden stuff. In one case, it turned up someone who’d sell his own mother. We didn’t hire him.

You can also work with an experienced headhunters but nothing replaces personal references.

Have you ever hired the wrong person for a sales job? What did you learn from that experience?

Once I got a personal referral for someone with no sales experience. I wasn’t going to look at his resume because enterprise selling requires experienced people.

But I was told he could handle any challenge. He’d been a commercial lender and we were moving into the U.S. and looking for someone with marketing experience so I hired him. Unfortunately, he didn’t know how to sell — what to ask or when. I had to hold his hand all the time. I don’t have time for that. You need someone who knows how to execute the sales process. It didn’t work out because I ignored my gut instinct.

You mentioned in an earlier interview with Red Canary that you prefer to hire females. What can men learn from women that would make them better sales people?

Women relate better to clients of both genders. This business is all about building relationships and women are better listeners.