We've just launched our guide on how to sales capacity plan, and we're pretty hyped about it - We believe it to be the most extensive guide going, and a real reset in the way that the math and formula behind revenue planning is looked at.
We've been banging the drum of the need for proper capacity planning for almost 2 years, and have been building Clevenue to make the process simpler and easier for teams to build and model the effects of their plans, however the knowledge of the math that we believe in was either undocumented or incorrect in every single place we looked.
Clevenue's Revenue Academy
With the rise of AI written articles, bad practice and approaches are endlessly regurgitated, and even expensive paid for memberships perpetuated the belief that top-down planning approaches are more than sufficient for growth, even now that businesses care a hell of a lot more about profitable efficient growth (PEG).
This is why we set out to build our Revenue Academy - A completely free and ungated resource for revenue leaders from wannabe through to seasoned, where you can learn everything from the basics of revenue through to more advanced concepts.
Our first full guide to Revenue Capacity
We've written a tonne across our blog on some of the fundamentals, and picked concepts apart, however this is the first time that we (or anyone else) has pulled into one resource everything from the initial calculation of sales quota, right through to linking spreadsheets to model scenarios.
With an estimated read time of 45+ minutes, it's hefty guide that will take you time to get through, however it took us a hell of a lot longer to write!
With the guide are step by step walk throughs of the formulas behind the revenue plan, as well as worked examples & spreadsheet templates to help get you going.
What is covered
Like we say, the guide is pretty comprehensive, so here's an overview of what is covered in it:
What is Sales Capacity
A quick overview of what it is, and where it comes into the sales planning process
Golden Rules of Sales Capacity
Some key rules that should dictate how you go about planning, which might conflict with how you've approached planning previously.
Calculating Sales Capacity
Calculating the actual capacity that sales reps have to sell, at an individual level.
Calculating Sales Quota
Linking sales capacity to quota, showing how sales quotas should be calculated and modeled.
Modeling Sales Capacity
An overview of how you should start to model it, including building in top-down objectives into a bottom up model.
Bottom-Up Modeling
How to build and calculate a bottoms up model, as well as key errors, mistakes and assumptions that are typically made.
Sales Cycle Modeling
How to model the sales cycle as part of your capacity plan, and the effect that it has.
Sales Ramp Modeling
Modelling the ramp of new starters, how it's incorrectly done EVERYWHERE and what it really means for performance.
Headcount Modeling
Building a headcount model across both SDR and AE teams, to understand what resource is needed where
Scenario Modeling
Taking all of this to create linked spreadsheet models that can be used for light scenario modeling.
Model Limitations
Highlighting the issues that come with building the models in a spreadsheet, as well as how to try and mitigate them
Sales Capacity Software
An overview of how dedicated software can help with the planning
Helpful Templates
Links to a load of helpful templates that we've built that can help with the process.