Avoid 3 Common Sales Mistakes Startups Make During a Recession • TechCrunch

More than 150000 workers have lost their jobs this year as layoffs have swept the tech landscape since June. Constant news cycles have analyzed every aspect of these staff reductions for meaning and lessons. How did we get here? How do companies manage their employees? Are there more layoffs on the way?

And, critically, what’s next for technology? Investors now demand profitability over growth. This extreme shift in the business model that investors want has left companies with tough decisions ahead of them and no playbook. Without the freedom that a low-cost-of-capital environment offers, for investors, new ventures that promise uncertain returns are a thing of the past, or at least, a much smaller focus.

What every company needs now is effective sales.

But there’s a big difference between knowing you need profitable income and knowing how to get it. Leaner teams, fewer resources, and a tough macroeconomic environment mean CROs are being forced to make big changes to budgets, staffing, and how they market and sell.

But maintaining revenue while the CFO cuts costs by 5%-20% isn’t easy for anyone — and doing more of the same won’t get you there.

The unfortunate truth is that if you don’t move beyond the same old buying group, you won’t move the needle.

The biggest mistakes you should avoid

Preliminary data from Databook shows that an unusually high percentage of companies worldwide are in the midst of changing their strategic priorities. Since these are typically multi-year commitments, this unprecedented change dramatically changes the sales landscape for tech startups.

If you stick strictly to traditional sales incentives and levers, you won’t deliver the game changer needed to win.

Don’t raise prices

Most startups rely on VC funding, and in today’s market, VCs are looking for a clear path to profitability. A seemingly “easy” way to improve profit margins is to raise prices.

This is a solution that you can only try once. you don’t want to keep raising prices in a competitive market. This is a temporary solution at best and can easily backfire, as higher prices during a recession can erode customer confidence in the long run. It can also lead to fewer renewals when there is less budget available.

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