Annual Planning for Sales Organizations: Headcount, Quotas & Territories

OpenView Labs

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.

How Quickly Does Headcount Scale in the Fastest Growing Software Businesses?

Tom Tunguz

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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5 Ways to Keep Your Sales Machine Efficient While Scaling Headcount

Sales Hacker

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.

Why do all the tech giants rely on “shadow forces” of temporary employees?


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.

The Startup Sectors Most Impacted by the Coronavirus

Tom Tunguz

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?

Top 10 Learnings from the Redpoint 2020 GTM Survey

Tom Tunguz

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 Latam special]: How Superlógica grew 10x by improving pricing plans


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.

Transforming Traditional Revenue Operations to Drive Growth


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

What are some of the most overlooked details or challenges when integrating two companies post-acquisition?


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?

Observations about Silicon Valley Two Weeks into Quarantine

Tom Tunguz

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.

8 Finance Mistakes Growing SaaS Businesses Make and How to Fix Them


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).

As Long As You Are Growing 60% Or More — Your Competition Can’t Really Hurt You


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.

Redpoint SaaS Startup Key Metrics Template

Tom Tunguz

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.

Why Self-Service and Product-Led Growth Won’t Replace Sales [Opinion]

Sales Hacker

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 ).

Your Sales Year is Coming to an End. Are you ready?


If you have open headcount for Q1 be interviewing in Q4. Behind headcount equals behind plan. It’s two weeks until December.

Sales 222

1 Key SaaS Sales Metric to Fine-Tune Sales Productivity


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.

The Employee Productivity Patterns of Billion Dollar SaaS Companies

Tom Tunguz

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.

CIOs from LogMeIn, Vonage and More Share How Their Role Has Changed in the Downturn

OpenView Labs

“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.

If You Want to Hit The ’20 Plan … You Gotta Be Making the Hires Now


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.

The Competition You Always Have: Headspace and Budget


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.

SaaS Financial Plan 2.0

The Angel VC

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.

We Haven’t Hit Peak SaaS


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.

Your Sales Efficiency Will Probably Plummet Toward $10m ARR. Plan For It.


But specializing across the sales process will take more headcount.

Sales 268

What Sales Operations Can Learn from Restaurants


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.

Sales 230

Your Product Sells Itself. Now Hire Sales.

OpenView Labs

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.

Why Fast Learning Curves are So Important to Startups

Tom Tunguz

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.

6 Mistakes to Avoid in Your Inbound Lead Follow-Up

Sales Hacker

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.

SaaS Company Benchmarking: Leveraging Metrics for Performance Insights


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.

The 4 Challenges Facing Customer Success Teams in SaaS Startups

Tom Tunguz

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.

These Cost-Reduction Strategies Aren’t Easy, But They Could Save Your Business

OpenView Labs

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.

How to Make the Case for Product Ops at Your Organization


For a cross-functional role like product ops, it’s not only about convincing leadership for headcount and resources. By Sara Estes, Content Marketing Manager.

Top 5 Must Have FinTech Solutions in 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.

By the time you're at $2-3M in ARR, you need a VP of Sales who's done it before

The Angel VC

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 Named Customer Success Leader in G2 Winter 2020 Report


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.

3 (free) tools to help SaaS founders with their 2017 planning

The Angel VC

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 :) ) In case you haven't started to think about your plan for 2017 yet, now's the time.

ChurnZero Leads G2’s Momentum Report for Customer Success Software


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.

5 Ways to Prepare a New Salesperson for Cold Calling

Chart Mogul

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.

CS Platform Increases Team Efficiencies and Optimizes Trial-to-Paid User Conversions – A Success Story


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.

The Pandemic Phase I Stress Test is Over. Is Your IT Team Ready for Phase II?

OpenView Labs

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.

SaaS FP&A – Are You Up to the Challenge?


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.