Is it time to hire a VP Sales?

Hiring a VP of Sales can be a major milestone for a SaaS start-up. This executive level role is responsible for leading the company's sales strategy and execution, and can be critical to driving revenue growth. However, it's important for start-ups to carefully consider when to bring on a VP of Sales and what qualities to look for in this key hire.

One of the primary factors to consider when deciding whether to hire a VP of Sales is the stage of the company's growth. Typically, a start-up will begin with a small sales team or may even rely on the founders to handle sales efforts. As the company grows and its sales efforts become more complex, it may be time to bring on a VP of Sales to lead and manage the sales team

What are the signs its time to hire a VP Sales?

This depends on a number of factors, including the company's stage of development and its sales objectives. Typically, a SaaS company should consider hiring a VP of Sales when it reaches a certain level of revenue and has a clear need to scale its sales operations. That revenue number will be different for each organization, but when a company is in a phase of developing and preparing for growth, it is ideal to have an experienced leader who can guide the sales team and take charge of the building of the sales strategy and forecasting.

A VP Sales hire should also help you develop and execute a sales strategy that aligns with the company's overall business objectives, and can also provide the experience and leadership needed to build and manage a high-performing sales team. Additionally, as a company begins to expand into new markets or customer segments, a VP of Sales can provide valuable insights and guidance.

Another major sign is when the Founder no longer has the time or capacity to manage the sales team effectively. As the company grows and the sales team expands, the founder may find that they are spending more and more time on sales-related tasks, rather than focusing on the overall strategy and direction of the company.

What to look for in a VP Sales

When hiring a VP of Sales, it's important to look for candidates who have a proven track record of building and leading successful sales teams. The VP of Sales should have a deep understanding of the company's target market and be able to develop and execute a sales strategy that aligns with the company's overall goals. They should also have excellent communication and leadership skills and be able to motivate and support the sales team to achieve their goals.

The VP of Sales should also be able to work closely with other members of the executive team (especially the VP Marketing) and be able to contribute to the overall direction and strategy of the company. They should also be able to adapt to the fast-paced and constantly changing environment of a start-up.

A VP of Sales needs to be able to switch between strategic and tactical thinking in order to effectively lead a sales team. A strategic mindset allows the VP to set long-term goals and develop a sales strategy, while a tactical mindset allows them to focus on day-to-day operations and make quick decisions. The ability to switch between these two modes of thinking is crucial for the success of the sales team, as it enables the VP to adapt to changing market conditions and effectively lead the team towards achieving their goal.

What to watch out for when hiring a VP Sales

When hiring a VP of Sales, it's important to be aware of a few potential pitfalls. One thing to be cautious of is hiring someone who has a history of making big promises and not delivering results. While a VP of Sales with a track record of success is certainly an asset, it's important to carefully evaluate their past performance and ensure that they can deliver on their promises.

It's important to consider how their previous experience aligns with your company's ICP, market and sales program. A VP of Sales with previous experience in a SaaS company with a similar sales cycle length, average deal size, and customer profile will have a better understanding of the unique challenges and opportunities that come with that specific market. This previous experience selling to similar industries will mean your new VP Sales should have a straightforward understanding of the key drivers, pain points, and decision makers in your market, which in-turn, will make designing your sales strategy much easier.

Another thing to be mindful of is hiring a VP of Sales who is not a good fit for the company culture. While a VP of Sales with a strong resume and proven track record may be highly qualified for the role, if they do not share the company's values and vision, they may not be the best fit for the role. Therefore, it is essential to consider if the candidate's values align with the company and if they have the ability to lead, inspire, and mentor the team.

Never hired a VP sales before?

Having a sales consultant help with recruiting your VP of Sales can be highly beneficial for your organization. A sales consultant can bring a wealth of experience and knowledge of the industry, as well as a deep understanding of the specific skills and qualifications needed for a VP of Sales role. They can help to identify and evaluate potential candidates, and they can also provide valuable insight into what a successful VP of Sales looks like and what they should bring to the table in order to achieve the company's sales objectives.

Additionally, A sales consultant can act as a neutral third party and provide an unbiased view on the candidate that can be hard to find within the company. With their experience in interviewing, assessing and leading sales teams, a consultant can help ensure the company finds the best fit for the role, considering not only the qualifications but also cultural fit, values and vision alignment.

Furthermore, a consultant can assist in facilitating the negotiation process and in setting expectations and goals for the new VP of Sales to ensure that they hit the ground running and make an impact as soon as possible.

Check out our next article on the characteristics to look for in your VP Sales hire