Trying to double from $10 million in revenue to $20 million. 10 salespeople today, growing to 20. Competitor B spends money on marketing, and salespeople cold call, but no one really tracks pipeline metrics. But the VP Sales and the salespeople have had a knack for hitting their numbers each month so far (with some scrambling). They think their new salesperson ramp time is 3-6 months (but they really will end up at 6-15 months... if their salespeople ramp at all). Which competitor would you bet will hit their goals? Here's the scenario I personally see playing out for too many companies in the next 12 months as they plan next year’s operational goals and plan: 1. The board and/or CEO set an aggressive revenue target for the coming year (mostly based on new customer acquisition). 2. The Sales VP and/or CEO divides the revenue target by the expected quota of each salesperson to determine the number of salespeople needed to hit the target. 3. It takes longer than expected to hire the new salespeople, and salespeople miss their targets after ramping MUCH more slowly than planned. 4. As the end of the year approaches with a big results gap to make up, everyone has an extra helping of frustration with a side of stress for Thanksgiving. A Fatal Mistake The root assumption that gets Sales VPs fired (although the Board and CEO are equally responsible) is the false assumption that salespeople will find new business on their own from past Rolodexes or lots of cold calls, with a minimum of help or investment from the company.
Predictable Revenue Page 21 Page 23