In the world of entrepreneurship, the debate between investing in marketing or sales is a common one. However, recent trends in the corporate world, such as the elimination of the Chief Marketing Officer (CMO) position from the C-Suite, suggest that prioritizing sales over marketing may be the way to go for entrepreneurs looking to grow their ventures efficiently and sustainably.
One of the key early-stage goals for entrepreneurs should be to grow more with less. This means focusing on sales, where the return on investment can be measured, rather than on marketing, which often leaves entrepreneurs wondering where their money went. As the famous quote by John Wanamaker goes, „Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.“
There are four key reasons why prioritizing sales over marketing can help entrepreneurs grow more with less. Firstly, venture capital (VC) is a costly form of capital, with early-stage VCs expecting high annual returns. However, statistics show that few entrepreneurs actually grow rich from early-stage VC investments. In fact, those who avoid or delay VC tend to retain more of the wealth created by their ventures.
Secondly, VCs have a tendency to replace entrepreneurs, firing up to 85% of them, especially those seeking additional rounds of early-stage VC. This loss of control can have detrimental effects on the founders and their ventures.
Thirdly, the chances of building a billion-dollar unicorn are significantly higher for entrepreneurs who avoid or delay VC investments. Only 6% of billion-dollar entrepreneurs built unicorns by getting early VC and losing control, while 94% took a different approach to improve their odds of success.
Lastly, sales can be seen as income, while marketing can be seen as an outgoing expense. By focusing on sales, entrepreneurs can generate revenue and cash flow, which is essential for the growth and sustainability of their ventures.
Billion-dollar entrepreneurs have shown that focusing on sales before marketing can lead to success. By finding the right customer segment, sales driver, and developing sales skills, entrepreneurs can optimize their early-stage growth and retain control of their ventures.
In conclusion, prioritizing sales over marketing can lead to more efficient and sustainable growth for entrepreneurs. By focusing on sales, measuring the return on investment, and avoiding or delaying expensive VC investments, entrepreneurs can control their ventures and retain more of the wealth created. Ultimately, the key to success lies in growing more with less, and sales may be the best way to achieve this goal.