Before hiring your first salesperson, make sure your SaaS company is ready to set them up for success. Learn how to define the role, plan for the cost and hiring timeline, document your sales process, and prepare your team to make the right hire.
Most SaaS founders spend a lot of time thinking about who they should hire. They look at resumes, compare compensation plans, talk to recruiters, and start interviewing salespeople. But there's a question I ask before we get into any of that.
Are you ready for the person you're about to hire?
Hiring somebody doesn't fix everything that isn't working in sales. If you don't have enough demand, hiring a closer doesn't magically create demand. If your entire sales process is in your head, the new salesperson doesn't automatically know how to sell your product. And if your pricing changes every week, your messaging isn't clear, or you haven't figured out who your best customers are, you're handing that person a difficult job.
That doesn't mean everything needs to be perfect. Especially if you're running a $1 million or $2 million SaaS company. It won't be. But you should understand what's working, what isn't, and what you expect this person to walk into and own.
One of the first questions we ask founders is what they're actually trying to accomplish with the hire. That sounds obvious, but the answer isn't always as clear as you'd expect.
Let's say you're the founder. You're running all the demos, closing most of the deals, and spending more time selling than running the company. You might need an Account Executive.
But what if you love doing demos and closing deals? You're good at it, and you want to keep doing it. The problem is that you don't have enough opportunities. Now you might need an SDR or BDR.
An SDR is generally focused on working inbound leads and creating qualified opportunities. A BDR is typically focused on outbound prospecting, turning cold prospects into conversations and meetings. Those are different jobs from closing business. And if you already have a sales team but nobody is building the process, managing the people, or owning the number, you may need a sales leader.
The mistake is deciding you need a particular title before defining the work. What do you need this person to take off your plate? Be specific. Running demos? Prospecting? Closing deals? Managing the pipeline? Building a sales process? Leading people? Once you understand the problem, you're in a much better position to determine the role.
I regularly talk to founders who want someone producing revenue next month but haven't started recruiting. You have to account for the time it takes to find candidates, interview them, make an offer, and get someone started.
Great candidates may already be interviewing with other companies. They may need to give notice. And even after they join, there's a ramp period before they're fully productive.
Let's say you need someone consistently closing business in September. That doesn't mean you should begin recruiting in September. You need to work backward from when they must be productive, accounting for recruiting, hiring, onboarding, and ramp.
The timing depends on the complexity of your sale, the candidate market, and how much of your sales process is already established. But one thing doesn't change. Your hiring timeline and your revenue timeline are not the same thing.
Compensation is another area where founders sometimes start interviewing before they've done the math. They know what they want to pay in base salary, but salary isn't the entire cost. You also have commissions, benefits, software, equipment, onboarding, and the time it takes for the salesperson to start producing.
If this person is going to cost your company $150,000 or $200,000 all in, what do they need to produce for the hire to make financial sense? That answer should come from your business economics, not from a candidate's compensation expectations.
Consider your average contract value, margins, sales cycle, and expected ramp. A salesperson who closes $5,000 annual contracts has a different production requirement from someone selling $100,000 enterprise agreements. And a salesperson who needs six months to ramp creates a different cash commitment from one who can begin closing business in the first few weeks.
You don't need a complicated financial model to start. But you should be able to explain what success looks like and how much the company can afford to invest before reaching it. Do the math before you fall in love with a candidate.
This is where hiring readiness becomes real. Imagine your new salesperson starts Monday morning. They have six questions.
Can you answer them? Better yet, can you give the salesperson something they can review without needing you in every conversation?
You don't need a hundred-page sales manual. A small SaaS company probably doesn't have the resources or the need for one. But there should be something. Maybe it's a handful of recorded demos, a simple description of your ideal customer, your discovery questions, CRM stages, and a few examples of successful follow-up. That gives the salesperson a starting point.
Compare that with telling someone to follow you around for the next month and figure things out as you go. The second approach might feel normal when you've been doing founder-led sales for years. But it makes the new salesperson dependent on you for everything. And wasn't getting some of your time back one of the reasons you wanted to hire them?
I learned a simple approach from Dan Martell years ago.
If you're doing it, record it.
If you're still the primary salesperson in your business, spend a week or two recording what you already do. Record your discovery calls and demos. Record how you prepare for meetings, follow up with prospects, and handle objections. Show what you enter into your CRM and how you decide when an opportunity should move to the next stage. Capture what you do after a prospect says they're interested, and what you do when they stop responding.
Then use those recordings to create your onboarding materials. That might involve your executive assistant, another team member, an AI tool, or you. The point isn't to create something beautiful. It's to capture the process that's already producing results.
There's another benefit. You'll start noticing things you do automatically that you've never explained. Maybe there are three questions you always ask in discovery. Maybe there's a signal you look for before sending a proposal. Maybe you handle pricing objections in a particular way.
You've done those things so often that you don't think about them anymore. Your new salesperson doesn't know any of it. Documenting your work makes those habits visible and gives the next person a chance to learn them.
Readiness isn't just about onboarding. It's also about whether your company can run an effective hiring process. Before you start recruiting, ask yourself:
I've seen companies lose excellent candidates because they take a week between interviews, then someone goes on vacation, then another week passes before anyone makes a decision. Meanwhile, the candidate is talking to three or four other companies.
You don't need to rush the evaluation or skip important steps. You do need to eliminate unnecessary delays. A good candidate shouldn't have to wait while your team figures out whether the hire is important.
Some founders delay hiring because they think they need everything figured out first. Others hire too early, expecting a salesperson to solve problems the business hasn't addressed. Neither extreme is particularly useful.
The goal is to know what you're asking someone to do and give them a reasonable opportunity to succeed. Know the role. Understand the economics. Plan for the recruiting timeline and ramp. Document what's already working. And make sure your team is ready to evaluate candidates and make a decision.
Your first salesperson may still need to help build parts of the process. That's normal in an early-stage company. But there's a difference between hiring someone to help build the business and hiring someone without knowing what you need them to build.
Before you start reviewing resumes, answer one question. What is this person going to walk into on Monday morning?
If you can answer that clearly, you're already in a much better position to make the right hire.
By Travis Janko, CEO of GSD Coach & Recruiting
GSD Coach & Recruiting helps SaaS companies identify and hire A-player sales talent who fit their business. Talk With GSD

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