In the fast-paced world of tech startups, hiring the right Chief Revenue Officer (CRO) or Vice President of Sales (VP of Sales) can be the difference between scaling successfully and stagnating.
This decision is crucial, given that your company’s survival hinges on your CRO delivering the revenue they forecast. This post explores the key qualities and experiences to prioritize when hiring a CRO or VP of Sales to ensure they can effectively scale your sales operations and drive revenue growth.
The tech startup environment is characterized by rapid growth, constant change, and fierce competition. To navigate these challenges successfully, you need a CRO or VP of Sales who not only understands the sales landscape but is also equipped to lead your company through its next phase of growth. While hiring someone who has held a similar title before is not always necessary, their career trajectory should indicate readiness for the role. This blog post will guide you on what to look for in your next sales leader to ensure they can help scale your operations and drive significant revenue growth.
Key Qualities and Experiences to Look For
1. Proven Track Record of Scaling Sales Operations
When evaluating candidates, look for those who have been part of companies that have seen great sales execution and scaled effectively. These individuals should be able to articulate what world-class sales execution looks like and demonstrate a strong track record of meeting or beating forecasts.
Internal Promotions: A history of being internally promoted is a good indicator of their competence and ability to take on greater responsibilities.
Steady Growth: Avoid candidates who hop around too frequently without getting promoted; they might not be ready for a CRO role.
2. Talent for Hiring and Retaining Sales Reps
Recruiting and retaining top talent are critical for any sales leader. The best CROs understand that sales capacity and productivity are the biggest levers they can pull to increase revenue.
Sales Capacity and Productivity: They should have experience planning for the sales capacity needed to meet future revenue targets and be adept at attracting and quickly ramping up good salespeople.
Enablement Materials: Look for candidates who have implemented successful training programs, enablement materials, and technologies to support their sales teams.
3. Accurate Forecasting and Territory Management
A good CRO must accurately forecast revenue and effectively manage territories and targets as the company scales.
Pipeline Management: They should have a keen understanding of pipeline and outbound sales, especially as the company scales into new territories.
Territory Adjustments: Experience in redrawing territories to match company changes while still hitting revenue forecasts is crucial.
4. Experience with Specific Go-to-Market Strategies
Your ideal candidate should have experience scaling a company from your current Annual Recurring Revenue (ARR) to the ARR you aim to achieve in 12-18 months.
Relevant Experience: If you’re scaling from $50M ARR to $150M ARR, ensure the candidate has actively developed processes rather than just benefiting from already established ones.
Willingness to Build: Gauge their willingness to roll up their sleeves and build what your company needs to scale.
5. Cultural Fit and Leadership Style
A successful CRO should be a cultural fit for your company and possess a leadership style that resonates with your team.
Team Development: They should be passionate about developing their team, ensuring that salespeople are earning, learning, and enjoying their work.
Energetic Culture: Building an energetic and enticing culture that retains top sales talent is essential.
Screening Questions for Potential CROs
To ensure you’re making the right hire, consider asking these screening questions:
Team Size: "How big a team do you think we need right now, given what you know about our company?"
Deal Sizes: "What deal sizes have you sold to, on average and range?"
Team Management: "Tell me about the teams you’ve directly managed and how you built them."
Recruitment: "Who are the top reps you’ve recruited in your previous roles?"
Revenue Forecasting: "How do you approach revenue forecasting and territory management?"
Conclusion
Hiring the right CRO or VP of Sales is a critical step in ensuring your tech startup can scale effectively and achieve its revenue goals. Focus on candidates with a proven track record of scaling sales operations, talent for hiring and retaining sales reps, accurate forecasting skills, and relevant go-to-market strategy experience. Additionally, ensure they are a cultural fit and possess a leadership style that will inspire and retain top sales talent.
By prioritizing these qualities and experiences, you’ll be well on your way to finding a sales leader who can drive significant revenue growth and help your company navigate the complexities of the tech startup landscape.
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Ready to find your next sales leader? Start your search with these key criteria in mind, and set your company on the path to accelerated growth and success.
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