Tweetstorm: Under-estimating the importance of sales capacity is dangerous

1/ A common mistake I see in growth stage SaaS is under-estimating the importance of planning for & building sales capacity in advance.

2/ In the daily grind of meeting quarterly targets, fighting fires, while still innovating on product…

3/ …it’s easy to forget how important it is to think of sales capacity you’ll need a year from now.

4/ Hiring and training reps, SDRs & SEs takes a lot of time. They ramp to full productivity in months. Can’t turn on sales capacity overnight

5/ Goes back to planning 24 months ahead instead of 12 months:


Tweetstorm: SDR productivity being a leading indicator of PMF in SaaS

1/ One of the leading indicators of product-market fit in SaaS is when your first couple of SDRs are getting uber productive super fast.

2/ Keep a close eye on: (1) Conversion rate from cold calls/emails to demos (2) # of demos each SDR can set up every week consistently.

3/ Of course, there are other metrics that matter: ARR growth rate, user engagement (v. important!), rep productivity etc.

4/ But the earliest indications of whether the product value prop is resonating with buyers can come from the SDR productivity metrics.

5/ What other qualitative/quantitative factors can be early indicators of product-market fit in SaaS?


Tweetstorm: Preparing budgets in SaaS startups

1/ A common mistake I see in SaaS during the budget prep cycle is founders making a 12 month operating and hiring plan instead of 24 months

2/ The tendency is to put together a detailed plan for the next 12 months and high level projections for the following 2 years.

3/ This most often first happens at ~$1m ARR, when founders are beginning to make detailed plans for the first time.

4/ One reason this is tough at ~$1m ARR is bec this is the 1st time you’re going from finding-product-market-fit-while conserving-cash to…

5/ …growing-as-fast-as-you-can mode.

6/ You got to $1m by iterating, while conserving cash. You’ll go from $1m to $5m by doubling down and investing ahead!

7/ What you will achieve in 2018 is directly contingent on the hiring you do in H2-2017, especially for enterprise sales driven models.

8/ As you put together your budget for 2017, think about your 2018 plan too. Plan ahead for success!