Hiring Your First VP of Sales: 7 Crucial Tips
Hiring your first VP of Sales is a pivotal decision for any SaaS startup. A successful hire can propel your revenue growth, while a misstep can cost you valuable time and resources. Follow these seven essential tips to find the right VP of Sales for your company.
1. Time it Right
Don't rush into hiring a VP of Sales. Wait until you have a repeatable sales process and at least two sales representatives consistently hitting their quota. Aim for around $1M in Annual Recurring Revenue (ARR) before making this key hire. A VP of Sales scales existing processes, not creates them from scratch.
2. Prioritize Recruiting Ability
A VP of Sales's primary responsibility is building a high-performing sales team. Ask potential candidates about their recruiting track record. Look for evidence of directly hiring at least three to four successful reps in their previous role. Inheriting a team doesn't demonstrate this crucial skill.
3. Avoid the Big Company Trap
Candidates from large corporations may not be the best fit for a startup environment. Prioritize experience scaling sales in a smaller, faster-paced setting (e.g., from $1M to $10M ARR). Look for a "scrappy" candidate comfortable with the challenges of a startup.
4. Recruit Proactively
Finding the right VP of Sales takes time. Start networking and building relationships with potential candidates months before you're ready to hire. Top talent is often not actively looking for a new role, so you need to sell them on your vision.
5. Test for Realism
Ask candidates about their realistic revenue projections for your company within the first 120 days. Overly optimistic answers can be a red flag. Look for candidates who are confident yet grounded in reality.
6. Seek Player-Coach Capabilities
In the early stages, your VP of Sales should be able to close deals themselves while building the team. This "player-coach" mentality is essential for a startup.
7. Watch for Red Flags
You'll typically know within the first 30 days if the hire is a good fit. Poor recruiting, an inability to close deals, and a lack of urgency are all warning signs. Don't hesitate to make a change if necessary.
Hiring a great VP of Sales requires effort, but the payoff is significant. Focus on recruiting ability, scaling experience, and a realistic outlook to find the right leader for your sales team.
More resources:
What Makes a Great VP of Sales and How to Hire One: The Complete Guide
