There is no clear-cut approach when building a sales team. Find out how to fuel pipeline with the right headcount and resources by checking out this sales capacity template.
Sales capacity model
Sales team performance and revenue targets go hand in hand. Think of your sales function as the fuel that keeps your company running. Without sales reps, your organization would never be able to achieve ambitious company goals and reach its fullest potential.
So how can you ensure that you have enough sales leaders to fuel a solid pipeline? By implementing a robust sales capacity planning strategy.
A sales capacity financial model uses sales rep performance to create revenue forecasts for the future. Taking into account average deal sizes, ramp time, and quota attainment for top-line planning allows you to map out revenue growth projections and see how changes to your sales team will impact company goals.
By bridging the gap between sales and finance teams, your organization can establish ownership of priorities, create strategic hiring plans, set realistic quotas, and better support your current headcount in sales.
Sales capacity planning and headcount
The sales process is complex. Between establishing a qualified pipeline to setting realistic sales targets, there are several components that make up a complete sales cycle. One way sales leaders can gain a holistic view of their sales organization and how they influence ARR targets is by creating a sales capacity plan.
With this template, easily create your sales forecasting model by inputting the monthly quota for each AE, ARR target, attainment, and new hires by month. Once you have an overview of how your sales team influences your ARR goals, you can then make more analytical decisions around future sales capacity planning and headcount.
