Entrepreneurs: Focus on Sales, Not Marketing for Early Growth

This article presents a compelling argument for entrepreneurs to prioritize sales over marketing in their early stages. It argues that by focusing on sales and achieving measurable returns, entrepreneurs can achieve sustainable growth and retain a larger share of the wealth they create. The article draws on the experiences of billion-dollar entrepreneurs and provides actionable advice for entrepreneurs to adopt a sales-driven approach.

Why Sales Over Marketing?

The article highlights the importance of sales over marketing for early-stage entrepreneurs. It argues that marketing can be expensive and ineffective, while sales provide measurable results. By focusing on sales, entrepreneurs can avoid wasting valuable resources on marketing campaigns with uncertain returns.

• Cost: Venture capital (VC) is a very expensive form of capital, often requiring annual returns of 80% to 100%. Early-stage VC can be detrimental to entrepreneurs, as they often retain a very small share of the wealth created. Those who avoid VC generally retain a significantly larger share of their wealth.
• Control: VCs frequently exert control over early-stage ventures, leading to the replacement of entrepreneurs with CEOs who further dilute founder ownership.
• Chances: The likelihood of building a billion-dollar unicorn through early VC is only 6%. The majority of billion-dollar entrepreneurs avoided or delayed VC to improve their odds of success.
• In-Come vs. Out-Go: Sales generate income, while marketing can lead to expenses. Entrepreneurs must prioritize strategies that bring in revenue.

Learning from Billion-Dollar Entrepreneurs

The article examines the strategies employed by billion-dollar entrepreneurs who prioritized sales over marketing in their early stages.

• Dick Schulze (Best Buy): Used weekly flyers to local markets, with the cost subsidized by manufacturers, targeting specific customer segments.
• Bill Gates (Microsoft): Focused on sales to PC makers, a strategic customer group.
• Michael Dell (Dell): Targeted PC buyers via direct mail campaigns, a measurable and effective sales driver.

Billion-Dollar Entrepreneurs' Focus on Sales

The article details how billion-dollar entrepreneurs prioritized sales before marketing. By adopting this approach, they optimized early-stage growth and retained control of their ventures.

• Finding the Right Customer Segment: Billion-dollar entrepreneurs identified their target customer segment precisely, avoiding wasted capital on broad marketing efforts. For example, Sam Walton targeted rural America, and Brian Chesky targeted New York landlords.
• Finding the Right Sales Driver: Entrepreneurs must identify the most effective sales driver that attracts customers at the lowest cost for fast cash flow. Joe Martin, who built Boxycharm.com into a unicorn, leveraged his online sales expertise.
• Developing Sales Skills: Sales prowess is crucial for early-stage success. Many billion-dollar entrepreneurs started their careers in sales, such as Dick Schulze, who emphasized sales skills when promoting employees.

Conclusion

The article strongly advocates for entrepreneurs to prioritize sales over marketing in their early stages. By focusing on measurable sales strategies, entrepreneurs can achieve sustainable growth, retain control of their ventures, and build significant wealth. The article provides a clear roadmap for entrepreneurs to avoid costly mistakes and learn from the successes of billion-dollar entrepreneurs.