If your sales team is too small, then you may be missing out on valuable opportunities – but too large of a sales force can be a problem for your payroll and bottom line. Even if your sales team is on commission, they still need a place to work, support staff, benefits and more. Finding the sweet spot for your business – enough salespeople to reach your goals without overwhelming your budget or support team – is a must if you want to thrive.
If you know you need to make a certain amount of sales next year – and you also know the average amount one of your salespeople brings in, simple division can give you a good idea of how many reps you’ll need to meet your goals.
If your goal is to make $1 million in sales next year, and your average salesperson brings in about 100K, the math is easy; you’ll need 10 salespeople to meet your goals. Can you support 10 salespeople – with leads, territory, salary and more? If you can, then this model can help you decide how many sales reps are on your ideal team.
If the math doesn’t work – if you need many more sales reps than you can afford to meet your goal, then you need to look at the other parts of the equation. Are your reps performing as well as they could – and are you giving them enough tools to work with? Adding additional team members to an already crowded field could actually reduce the amount of sales each rep brings in.
Defining exactly how many team members you need on your sales force is both an art and a science; the math and logistics both matter when you decide on just how many reps you actually need. Knowing what capacity each member of your team is capable of can help you decide if you need more reps – or if you need to part ways with some of your reps.
Contact us to learn more about optimizing your medical device or biotech sales team – and to find the right professionals for the job.