The Difference Between Sales at Startup vs. Enterprise Companies
When it comes to selling, startup and enterprise companies have very different needs. Both need to make sales to stay in business, but there are stark differences in how they approach the process. Understanding the differences between sales at startup and enterprise companies is essential for any organization that wants to succeed.
What is a Start Up Company?
A startup is a business that has recently been created and is typically still in the early stages of development. They are typically financed by venture capital companies or angel investors, and often lack the deep pockets of larger organizations. As such, they must be creative and resourceful to succeed.
What is an Enterprise Company?
An enterprise is a well-established company with a large customer base and robust resources. They tend to be more well-established than startups and have more market share. They may have a good reputation in the industry, have access to a large customer base, and be well-positioned to expand.
Differences in Environment
The environment in which sales teams work may vary significantly between startups and enterprises. Startups usually have fewer resources, meaning smaller budgets and fewer personnel. There may also be a less formal environment and more of a ‘startup culture’.
On the other hand, larger companies will have more resources, meaning a larger budget, multiple departments, and a more formal way of working. There is also a greater emphasis on hierarchy, as well as greater accountability from the team.
Differences in Target Market
Startups typically have a narrow market segment, such as a certain type of customer or region. This makes it easier for them to target specific groups of customers. However, they may have a smaller reach and less brand recognition than larger organizations, meaning they have to be creative and resourceful in their marketing tactics.
Enterprises, on the other hand, typically have a much broader target market. They may have products and services aimed at multiple customer segments, as well as having more brand recognition than a startup. As such, they have more access to customers and a bigger reach.
Differences in Approach to Sales
The sales process for startups may differ significantly from larger companies. Startups may be more creative and flexible in their approach to sales, often focusing on building relationships and connecting with potential customers.
On the other hand, enterprises typically have a more established approach to sales. There is usually more emphasis on data and metrics, as well as a greater focus on strategically leveraging the resources available to them.
Differences in Tactics Used
Startups may use a variety of tactics to reach potential customers, including digital marketing strategies such as SEO, social media, influencer marketing, and email campaigns. They may also use more traditional methods such as cold calls and door-to-door sales tactics.
Large companies, on the other hand, tend to focus more on traditional sales tactics such as direct mail, telemarketing, and conferences to reach their customers, as well as digital marketing strategies such as email campaigns and social media advertising.
Differences in Resources
Startups may have limited resources, meaning they have to be creative and resourceful in order to reach customers. They typically have to rely on their own employees to generate leads and close sales.
On the other hand, enterprise companies often have more resources to dedicate to sales. This may include teams of experts focused on specific areas of the sales process, as well as larger marketing budgets and more access to data. This allows them to be more effective and efficient in their sales process.
The differences between sales at startup and enterprise companies can be quite stark. Startups tend to be more resourceful and creative in their approach to sales, while enterprises rely heavily on data and metrics. Understanding these differences can help any organization develop strategies and tactics that are tailored to their unique needs.
