Reducing the Break-even Time for New Salespeople
Overcoming a major barrier to growth
The sales team is a significant engine of organic growth for most companies. Unless you already have a dominant market share, or operate in a commodity business where price is the only issue, increasing the size of your sales team would have a major impact on your growth rate.
The problem is that the cost of a new salesperson starts to affect your P&L as soon as you hire them, but, for B2B products with a relatively long sales cycle, they may not start generating significant revenue until at least a year later. As a result, you can only invest in a limited number of new salespeople each year without damaging current profitability. For many companies, this is a major barrier to growth.
“For many companies, the time it takes for new salespeople to generate revenue is their biggest barrier to growth”
At Imparta, we have been researching this issue in depth, because we see overcoming this barrier as vital for us to maintain the growth we have achieved over the past decade.