Note: The following is an excerpt from the Scale Smarter Newsletter.

Developing quotas and analyzing your sales funnel allows you to build repeatability around your revenue. It also makes it a smoother transition as you shift from founder-led sales to having SDRs drive sales activities.

I’ve been working with a new startup client in my startup B2B sales bootcamp. We’re focused on building a repeatable sales system that prioritizes cold outbound over the phone.

While we were getting ready for their first Lead Sprint, they asked a great question:

How many prospects do we need to reach out to and how many calls do we need to make to reach our goal?

Introducing the Math of Sales Formula:

Let’s use an example and work the formula backwards to answer their question: You’re selling product management software (similar to Clickup or Asana) by the user (seats) to growing startups via outbound outreach.

And let’s say your goal for a salesperson is to close 60 seats each month.

Now let’s do the math...

Win: 60 seats/mo = 12 Accounts

If your goal is to reach 60 seats per month, then you need to win 12 new business accounts with an average of 5 seats per account.

Need to perform 48 Demos

(Close rate of 25%)

Not every demo that you perform will close or win. A common industry and historical average is 25-35%.