A founder who has reached $1 million in annual recurring revenue (ARR) by selling their SaaS product themselves is advised to hire a VP of Sales only after establishing a solid sales foundation. The guidance comes from SaaStr, which recommends ensuring at least two sales representatives consistently hit quota before bringing in a VP of Sales to scale the process.
The recommended approach emphasizes hiring a "stretch" VP of Sales—someone who has been a Director or Senior Director of Sales at a similar company and is eager to take on their first VP role. This candidate should be hands-on, willing to build the sales function, and have proven experience recruiting at least two successful sales reps. The advice cautions against hiring a veteran VP who has scaled much larger companies, as they may not fit the current stage of growth.
This hiring strategy matters because a VP of Sales cannot build a scalable sales operation without an existing repeatable process and a capable sales team. SaaStr highlights that founders should first focus on recruiting and training sales reps who can consistently meet quotas, creating a foundation for the VP to expand. This approach aligns with best practices in SaaS sales scaling, where incremental team growth precedes leadership hires.
SaaStr’s guidance underscores that the right timing and candidate profile for a VP of Sales can significantly impact a SaaS startup’s growth trajectory. Founders approaching or surpassing $1 million ARR should prioritize building a reliable sales team before appointing a VP, ensuring the new leader can effectively scale the business.