Written by: George Staikos, Boundless Business Consulting

For many small and medium-sized enterprises (SMEs), investing in business development or sales can feel like a major risk. The cost of hiring salespeople, implementing CRM systems, or launching outbound efforts can seem daunting—especially when revenue is not yet predictable. 

However, avoiding an investment in sales and business development can be just as costly. Without a structured approach to customer acquisition, businesses often hit a plateau and struggle to move beyond founder-led sales or word-of-mouth referrals. 

So, when is the right time for an SME to invest in business development or sales? Here is what to consider, along with best practices from industry experts. 

When Referrals and Founder-Led Sales Are No Longer Enough 

Many SMEs get off the ground with network-driven sales—founders leveraging personal connections, referrals, and industry networks. However, this approach will not be scaled. 

Harvard Business School professor Frank Cespedes, author of Sales Management That Works, emphasizes that “businesses don’t scale unless sales scale”. Relying on referrals and opportunistic selling creates unpredictable revenue and prevents SMEs from expanding into new markets. 

Best Practice: If 50%+ of your revenue comes from referrals, it is time to invest in structured lead generation and sales efforts. 

When You Need Predictable Revenue Growth 

One of the biggest concerns SMEs have about investing in sales is the time it takes to see results. Unlike marketing, which can create short-term demand, sales functions take time to ramp up, and results are not always immediate. 

Patience is key with Sales or Business Development. According to the Bridge Group’s Sales Development Report, it takes an average of 3.2 months for a new sales rep to become productive, and full pipeline maturity can take 6-12 months. 

Best Practice: 

• Set realistic expectations on time-to-value—sales development efforts may take 3-6 months before seeing significant ROI. 

• Focus on repeatable processes—build a structured sales pipeline rather than relying on ad-hoc opportunities. 

When You are Struggling to Close Deals or Expand Your Market 

If your business is consistently losing deals or struggling to convert interest into sales, it may be time to invest in business development professionals who can: 

• Expand prospecting efforts beyond inbound leads 

• Refine outreach and sales messaging 

• Shorten the sales cycle by improving conversion tactics 

Gartner’s B2B Buying Study found that 77% of buyers feel the sales process is too complex and that businesses that focus on consultative selling and process efficiency see higher conversion rates. 

Best Practice: 

• Track lost deals and identify whether the issue is lead quality, sales process inefficiency, or lack of outreach. 

• Invest in CRM and sales automation tools (like HubSpot or Salesforce) to track, measure, and improve pipeline efficiency. 

When Competitors Are Outpacing You in Market Share 

If you notice competitors rapidly expanding while your business remains stagnant, it is a sign that their sales and business development functions are working more efficiently than yours. 

According to McKinsey & Company, companies that proactively scale their sales teams and implement structured business development efforts grow 40% faster than those that wait for organic growth. 

Best Practice: 

• Conduct a competitive analysis—what sales channels are competitors using? 

• If competitors have inside sales teams, outbound prospecting, or partnership strategies, it may be time to build your own sales structure. 

How to Make an Investment Without Wasting Money 

SMEs often worry about hiring too soon or spending too much. Here is how to make smart sales investments: 

• Start with fractional or outsourced sales support—before committing to full-time hires, test outbound sales using fractional business development reps (BDRs) or outsourced firms. 

• Define clear success metrics—track cost per acquisition (CAC), conversion rates, and time-to-close to assess ROI. 

• Align sales with marketing—companies that integrate sales and marketing efforts see 38% higher win rates (Aberdeen Group). 

Final Thoughts: When to Take the Leap 

The right time to invest in business development and sales is before you hit a revenue plateau, not after. If referrals are slowing, conversion rates are declining, or competitors are gaining ground, waiting too long to scale your sales efforts could be a costly mistake. 

If your SME is approaching $500K+ in revenue and struggling to scale, now is the time to invest in a structured business development strategy. 

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