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If you have a SaaS startup with a higher-touch sales model where revenue growth is largely driven by sales headcount, the plan needs to be modified accordingly. MORE
We can derive the table above if we look over the entire respondent base and bucket headcount by ARR. This post is part of a series leading up to SaaS Office GTM Edition on June 24 in which we’re reviewing the results of the 2020 Redpoint GTM survey. MORE
They’re experiencing billing disputes and mushrooming headcount in sales operations, and a growing reliance upon manual work arounds in Excel® or email. By: Peter Getchell, EVP, ERP Practice, Navint We talk with many CFOs, CROs, and CEOs who are frustrated by the internal friction their teams experience in day-to-day business operations. In many cases these symptoms perplexingly persist even after. Source. Insight MORE
The chart above shows the headcount growth of the median publicly traded SaaS company from year four through year ten of the company’s life. The multiplicative effect of headcount growth and improving productivity fuels the growth of the business. SaaS companies are marvelous businesses. They are more predictable than most other kinds of companies and in addition they demonstrate leverage from technology. MORE
“In any downtown, a leader has a number of tools at their disposal to maintain the health of the organization and keep costs under control if needed: Headcount, programs, automation, discretionary spend and others. We talk a lot about the end-user era at OpenView. MORE
Not that much given the overall headcount I nominally had assigned to me. A common VC-ism is that You Always Have Competition. This probably is mostly true, especially since 70% of the top SaaS companies are really just new versions of old, established categories. MORE
But specializing across the sales process will take more headcount. MORE
SaaS companies tend to have more Finance headcount than traditional, non-Cloud companies. Median Finance headcount in private, growth SaaS companies averaging $25M is 7 Finance executives. Heading into the 2020 planning season, SaaS FP&A teams are working to finalize 2020 budgets and planning. MORE
Imagine you work at a startup that is growing headcount 125% year over year. Startups are business machines engineered to grow quickly. The forces of hypergrowth exert enormous strain on every aspect of the company. Internal break all the time as the company moults into a new skin. This is one of the most important things to keep in mind when hiring. MORE
It has allowed the team to scale to 500+ accounts without the need for additional headcount. . CS Platform Increases Team Efficiencies and Optimizes Trial-to-Paid User Conversions – A Success Story. RFP360 was founded to help customers develop strategic RFP processes that deliver results. MORE
In 2014, Mixpanel’s Series B pitch deck spelled out the company’s expansion plans over the next two years: 3x sales headcount and rapidly race towards distribution. Double headcount every 6-9 months. MORE
Sales now accounts for about 7% of the company’s headcount–a similar share of their workforce as marketing or product management. Among the PLG businesses that have gone public since 2017, sales headcount grew by an average of 45% year-on-year compared to a 33% increase in non-sales headcount. MORE
Financial Plan This template helps you create a full financial plan that includes everything from revenue modeling to costs projections and headcount planning. (As you can see, I really like placeit.net :) ) In case you haven't started to think about your plan for 2017 yet, now's the time. MORE
And they have five times the headcount and have raised $25 million. (Note; an update of a classic SaaStr post, with 2020+ learnings.). A little while ago, I Zoomed with a good friend running a SaaS company doing about $4 million in ARR. A really good SaaS company. And he was beside himself. MORE
Reduce headcount. In times of crisis, no department gets a pass when it comes to reducing headcount. Businesses across the globe are facing unprecedented challenges in the face of the COVID-19 pandemic. MORE
Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. I’ve normalized the years for when all the businesses were roughly at the same headcount - fewer than 50 people. What does the “average” hyper growth software company look like in terms of headcount growth? How quickly do the fastest growing software companies build their teams? The answer is incredibly quickly. MORE
In the last three years, it has grown from 60 to 225 in headcount, 10x in revenue and now serves 4 different verticals. Tune in for an extra bonus episode of the podcast, hosting SaaStock LatAm speaker André Baldini, CEO of Superlógica who tell us how the company grew revenue 10x. MORE
This includes their own technology, reporting, and headcount as well as what Marketing needs from Sales in terms of feedback and accountability. This includes their own technology, reporting, and headcount as well as what Sales needs from Marketing in terms of feedback and accountability. MORE
As you can see in the spreadsheet and in the chart, based on these assumptions your total sales headcount increases from 2 to 9 in year 2 and from 9 to 30 in year 3. PS: As you can see in the chart below, there's a 1:1 correlation (approximately) between ARR and sales headcount. MORE
Benchmarking also provides useful data on spending levels across the major expense categories, i.e., COR, R&D, S&M, and G&A, and well as specific data on headcount for each team within these categories. For example, you can access Sales headcount data for Account Executives, Sales Development Reps/Business Development Reps and Renewal Reps along with compensation data. MORE
Customer success teams must justify the investment of building a CS team, often at the expense of headcount in another team. Constrained by headcount budgets and burn requirements, startup leadership teams often must choose between hiring an additional sales person or investing in a customer success person, for example. MORE
Marketing teams spend 5-10% of ARR on programs (non-headcount expenses), and this is pretty consistent across ARR. Engineering:Account Executive headcount ratios scale from about 3:1 down to 1:1 as a company scales revenue. MORE
Under current financial circumstances, every headcount is important and there should be very little tolerance for individuals who are failing to meet their obligations or are undermining the productivity of others. The Phase I stress test is over. MORE
Headcount Planning. But headcount planning is often a useful place to start because the inputs required to make decisions are the least dependent on factors outside of the sales organization. This decision will drive many of your other headcount decisions. MORE
Sales still makes up 25% of their headcount on average. Sales and business development headcount increased by 45% year-on-year versus just 33% in non-sales roles (the full data is available here ). MORE
The new Customer Success Software Momentum Grid from G2 showcases CS solutions with the highest growth trajectory on a product’s user satisfaction, online presence, and employee headcount growth over the last year. ChurnZero Leads Momentum Grid on G2 For Third Season. MORE
Decreased revenue per rep, High turnover as you scale headcount. “It’s We made our machine more efficient even as we scaled, grew headcount, and skyrocketed our revenue. The post 5 Ways to Keep Your Sales Machine Efficient While Scaling Headcount appeared first on Sales Hacker. MORE
The rule says that all employees of affiliated companies must be considered headcount. What’s going on in Startupland? Venture rounds are closing. We’ve seen seeds, As, Bs, and growth rounds in the past few weeks. And round announcements continue. MORE
As headcount surges, what specific fields mean, why they are useful, and when the business requires that information can be lost in the shuffle. Boston’s Trident Booksellers and Cafe thrums on a Saturday morning. MORE
But starting that week, startups began reducing headcount by about 700 per day. ClassPass, one of the fitness startups to reduce headcount, reported a 95% drop in sales in 10 days. Which startup sectors are most affected by coronavirus? MORE
This INCLUDES headcount-related expenses. If you are utilizing Gusto or a similar payroll tool, your headcount expenses are likely coming into your P&L as one (or maybe two) line item(s). MORE
But let me suggest one reason I learned when I was an exec in a F500 tech company: Headcount was most fixed for a year. Our group had a fixed headcount of about 800 to manage about $800m in revenue. Getting even a single additional headcount was incredibly difficult. MORE
There are a ton of FinTech or RevOps products on the market and you can’t use them all but if your business is growing and you need to keep up without adding a ton of headcount, these are definitely solutions you want to invest in for 2020. MORE
With precise headcount and budget needs. A few seasons back, we wrote a post on hitting how in SaaS, you have to be putting the resources in place by Q3 to hit the plan for the next year. We update this post a bit annually as we head into next year’s planning procress. MORE
At the highest level, SaaS companies look at sales expense, headcount, sales productivity and SaaS metrics like: The cost of new customer acquisition (CAC). Sales is the Growth Engine. Sales is the engine driving SaaS company value. MORE
The new Customer Success Software Momentum Grid from G2 showcases CS solutions with the highest growth trajectory on a product’s user satisfaction, online presence, and employee headcount growth over the last year. MORE
If you have open headcount for Q1 be interviewing in Q4. Behind headcount equals behind plan. It’s two weeks until December. MORE
This section covers employee satisfaction, headcount, and recruiting metrics. Over the last decade or so, I’ve compiled a metrics sheet to summarise a SaaS business. While no living document like this is ever perfect, this is currently the best board-level summary of the overall health of a business I have found. I’m sharing it so that others may benefit and improve it. If you have suggestions, please email me. Redpoint SaaS Metrics Template. MORE
If your new hire represents added headcount to your sales team, you may need to reconfigure your sales territories or lead assignment protocols. Onboarding a new member of your sales team is challenging on its own, but especially so when they have to call prospects out of the blue. MORE
For a cross-functional role like product ops, it’s not only about convincing leadership for headcount and resources. By Sara Estes, Pendo.io Content Marketing Manager. MORE
Because headcount is often fixed in BigCos. Because overall headcount might be fixed at say 15,000. Q: What are some of the most overlooked details or challenges when integrating two companies post-acquisition? MORE
Headcount Related Topics OpenView Labs
OCTOBER 2, 2019
Headcount Planning. But headcount planning is often a useful place to start because the inputs required to make decisions are the least dependent on factors outside of the sales organization. This decision will drive many of your other headcount decisions.
Tom Tunguz
NOVEMBER 28, 2017
Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. I’ve normalized the years for when all the businesses were roughly at the same headcount - fewer than 50 people. What does the “average” hyper growth software company look like in terms of headcount growth? How quickly do the fastest growing software companies build their teams? The answer is incredibly quickly.
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Sales Hacker
JULY 24, 2018
Decreased revenue per rep, High turnover as you scale headcount. “It’s We made our machine more efficient even as we scaled, grew headcount, and skyrocketed our revenue. The post 5 Ways to Keep Your Sales Machine Efficient While Scaling Headcount appeared first on Sales Hacker.
SaaStr
OCTOBER 4, 2019
But let me suggest one reason I learned when I was an exec in a F500 tech company: Headcount was most fixed for a year. Our group had a fixed headcount of about 800 to manage about $800m in revenue. Getting even a single additional headcount was incredibly difficult.
Tom Tunguz
APRIL 5, 2020
But starting that week, startups began reducing headcount by about 700 per day. ClassPass, one of the fitness startups to reduce headcount, reported a 95% drop in sales in 10 days. Which startup sectors are most affected by coronavirus?
Tom Tunguz
JUNE 24, 2020
Marketing teams spend 5-10% of ARR on programs (non-headcount expenses), and this is pretty consistent across ARR. Engineering:Account Executive headcount ratios scale from about 3:1 down to 1:1 as a company scales revenue.
|
SaaStock
MARCH 27, 2019
In the last three years, it has grown from 60 to 225 in headcount, 10x in revenue and now serves 4 different verticals. Tune in for an extra bonus episode of the podcast, hosting SaaStock LatAm speaker André Baldini, CEO of Superlógica who tell us how the company grew revenue 10x.
Navint
MARCH 20, 2020
They’re experiencing billing disputes and mushrooming headcount in sales operations, and a growing reliance upon manual work arounds in Excel® or email. By: Peter Getchell, EVP, ERP Practice, Navint We talk with many CFOs, CROs, and CEOs who are frustrated by the internal friction their teams experience in day-to-day business operations. In many cases these symptoms perplexingly persist even after. Source. Insight
SaaStr
FEBRUARY 11, 2020
Because headcount is often fixed in BigCos. Because overall headcount might be fixed at say 15,000. Q: What are some of the most overlooked details or challenges when integrating two companies post-acquisition?
Tom Tunguz
APRIL 1, 2020
The rule says that all employees of affiliated companies must be considered headcount. What’s going on in Startupland? Venture rounds are closing. We’ve seen seeds, As, Bs, and growth rounds in the past few weeks. And round announcements continue.
SaaSX
FEBRUARY 5, 2020
This INCLUDES headcount-related expenses. If you are utilizing Gusto or a similar payroll tool, your headcount expenses are likely coming into your P&L as one (or maybe two) line item(s).
|
SaaStr
JUNE 13, 2020
And they have five times the headcount and have raised $25 million. (Note; an update of a classic SaaStr post, with 2020+ learnings.). A little while ago, I Zoomed with a good friend running a SaaS company doing about $4 million in ARR. A really good SaaS company. And he was beside himself.
Tom Tunguz
JUNE 18, 2019
This section covers employee satisfaction, headcount, and recruiting metrics. Over the last decade or so, I’ve compiled a metrics sheet to summarise a SaaS business. While no living document like this is ever perfect, this is currently the best board-level summary of the overall health of a business I have found. I’m sharing it so that others may benefit and improve it. If you have suggestions, please email me. Redpoint SaaS Metrics Template.
Sales Hacker
JUNE 1, 2020
Sales still makes up 25% of their headcount on average. Sales and business development headcount increased by 45% year-on-year versus just 33% in non-sales roles (the full data is available here ).
InsightSquared
NOVEMBER 19, 2018
If you have open headcount for Q1 be interviewing in Q4. Behind headcount equals behind plan. It’s two weeks until December.
InsightSquared
MAY 7, 2019
At the highest level, SaaS companies look at sales expense, headcount, sales productivity and SaaS metrics like: The cost of new customer acquisition (CAC). Sales is the Growth Engine. Sales is the engine driving SaaS company value.
Tom Tunguz
FEBRUARY 4, 2015
The chart above shows the headcount growth of the median publicly traded SaaS company from year four through year ten of the company’s life. The multiplicative effect of headcount growth and improving productivity fuels the growth of the business. SaaS companies are marvelous businesses. They are more predictable than most other kinds of companies and in addition they demonstrate leverage from technology.
OpenView Labs
JUNE 9, 2020
“In any downtown, a leader has a number of tools at their disposal to maintain the health of the organization and keep costs under control if needed: Headcount, programs, automation, discretionary spend and others. We talk a lot about the end-user era at OpenView.
SaaStr
OCTOBER 18, 2019
With precise headcount and budget needs. A few seasons back, we wrote a post on hitting how in SaaS, you have to be putting the resources in place by Q3 to hit the plan for the next year. We update this post a bit annually as we head into next year’s planning procress.
SaaStr
JULY 18, 2019
Not that much given the overall headcount I nominally had assigned to me. A common VC-ism is that You Always Have Competition. This probably is mostly true, especially since 70% of the top SaaS companies are really just new versions of old, established categories.
The Angel VC
MARCH 23, 2016
If you have a SaaS startup with a higher-touch sales model where revenue growth is largely driven by sales headcount, the plan needs to be modified accordingly.
Hitenism
JANUARY 16, 2017
In 2014, Mixpanel’s Series B pitch deck spelled out the company’s expansion plans over the next two years: 3x sales headcount and rapidly race towards distribution. Double headcount every 6-9 months.
SaaStr
OCTOBER 6, 2019
But specializing across the sales process will take more headcount.
InsightSquared
FEBRUARY 22, 2018
As headcount surges, what specific fields mean, why they are useful, and when the business requires that information can be lost in the shuffle. Boston’s Trident Booksellers and Cafe thrums on a Saturday morning.
OpenView Labs
FEBRUARY 10, 2020
Sales now accounts for about 7% of the company’s headcount–a similar share of their workforce as marketing or product management. Among the PLG businesses that have gone public since 2017, sales headcount grew by an average of 45% year-on-year compared to a 33% increase in non-sales headcount.
Tom Tunguz
AUGUST 18, 2018
Imagine you work at a startup that is growing headcount 125% year over year. Startups are business machines engineered to grow quickly. The forces of hypergrowth exert enormous strain on every aspect of the company. Internal break all the time as the company moults into a new skin. This is one of the most important things to keep in mind when hiring.
Sales Hacker
MAY 21, 2020
This includes their own technology, reporting, and headcount as well as what Marketing needs from Sales in terms of feedback and accountability. This includes their own technology, reporting, and headcount as well as what Sales needs from Marketing in terms of feedback and accountability.
OPEXEngine
DECEMBER 17, 2019
Benchmarking also provides useful data on spending levels across the major expense categories, i.e., COR, R&D, S&M, and G&A, and well as specific data on headcount for each team within these categories. For example, you can access Sales headcount data for Account Executives, Sales Development Reps/Business Development Reps and Renewal Reps along with compensation data.
Tom Tunguz
MAY 14, 2014
Customer success teams must justify the investment of building a CS team, often at the expense of headcount in another team. Constrained by headcount budgets and burn requirements, startup leadership teams often must choose between hiring an additional sales person or investing in a customer success person, for example.
OpenView Labs
APRIL 28, 2020
Reduce headcount. In times of crisis, no department gets a pass when it comes to reducing headcount. Businesses across the globe are facing unprecedented challenges in the face of the COVID-19 pandemic.
SaaStr
OCTOBER 30, 2019
For a cross-functional role like product ops, it’s not only about convincing leadership for headcount and resources. By Sara Estes, Pendo.io Content Marketing Manager.
SaaSOptics
JANUARY 9, 2020
There are a ton of FinTech or RevOps products on the market and you can’t use them all but if your business is growing and you need to keep up without adding a ton of headcount, these are definitely solutions you want to invest in for 2020.
The Angel VC
JUNE 25, 2015
As you can see in the spreadsheet and in the chart, based on these assumptions your total sales headcount increases from 2 to 9 in year 2 and from 9 to 30 in year 3. PS: As you can see in the chart below, there's a 1:1 correlation (approximately) between ARR and sales headcount.
ChurnZero
JANUARY 3, 2020
The new Customer Success Software Momentum Grid from G2 showcases CS solutions with the highest growth trajectory on a product’s user satisfaction, online presence, and employee headcount growth over the last year. ChurnZero Leads Momentum Grid on G2 For Third Season.
The Angel VC
NOVEMBER 23, 2016
Financial Plan This template helps you create a full financial plan that includes everything from revenue modeling to costs projections and headcount planning. (As you can see, I really like placeit.net :) ) In case you haven't started to think about your plan for 2017 yet, now's the time.
ChurnZero
AUGUST 23, 2019
The new Customer Success Software Momentum Grid from G2 showcases CS solutions with the highest growth trajectory on a product’s user satisfaction, online presence, and employee headcount growth over the last year.
Chart Mogul
MAY 7, 2020
If your new hire represents added headcount to your sales team, you may need to reconfigure your sales territories or lead assignment protocols. Onboarding a new member of your sales team is challenging on its own, but especially so when they have to call prospects out of the blue.
ChurnZero
JANUARY 7, 2020
It has allowed the team to scale to 500+ accounts without the need for additional headcount. . CS Platform Increases Team Efficiencies and Optimizes Trial-to-Paid User Conversions – A Success Story. RFP360 was founded to help customers develop strategic RFP processes that deliver results.
OpenView Labs
JULY 1, 2020
Under current financial circumstances, every headcount is important and there should be very little tolerance for individuals who are failing to meet their obligations or are undermining the productivity of others. The Phase I stress test is over.
OPEXEngine
OCTOBER 31, 2019
SaaS companies tend to have more Finance headcount than traditional, non-Cloud companies. Median Finance headcount in private, growth SaaS companies averaging $25M is 7 Finance executives. Heading into the 2020 planning season, SaaS FP&A teams are working to finalize 2020 budgets and planning.
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