• 4 Sales Metrics That A Private Equity Investing Firm Should Watch

    As a private equity investing firm with a focus on acquiring software companies, you know that these new, innovative markets require a robust sales program in order for you to successfully sell in a rather quick timeframe. Due to how fast technology adapts, you don’t have the luxury to wait for the revenue to roll in.

    When it comes to your software portfolio investment, you’re also watching dollars closely. As you invest back into the software company to help raise its value, you must do so with great intent – much more meticulously than you might with a huge company that’s already public.

    So, what does it take to achieve the revenue you want for your new software portfolio investment?

    By drilling down on the following four specific sales metrics, you are able to determine how to drive revenue and raise the company’s value:

    1. Examine The Current Customer Base
      First and foremost, you need to understand what the growth potential is for your software portfolio investment, and that is typically identified by examining the sales metrics of the current customer base. By reviewing the existing customer base, you have an idea of the length of the software company’s sales cycle, which is critical in terms of revenue generation and timeline.
    2. Review The Prospect Database (If There Is One …)
      Pre-IPO software companies typically have a smaller infrastructure in terms of in-house sales, meaning they may not even have a working prospect database. Even if they do have a prospect database, you must determine if the sales funnel is healthy and how fresh the prospect list is. Have contacts run their course or is the database being populated with new contacts consistently?
    3. Assess The Current Sales Team
      With access to the right sales metrics, you may also determine the top performers in the software company’s current sales team. Likewise, you may discover what their inside-to-outside ratio is, what the sales team’s skill set is like and if they need any further training. For this investment to be profitable for your private equity investing firm, you must grow the sales team quickly.
    4. Sales Pipeline
      You need to be able to look at the software company’s sales pipeline and make predictions based on trending metrics. To effectively drive revenue, you must be able to make qualified predictions from the sales metrics. Metrics within the sales pipeline should show you how many prospects the company has, which implies active appointment setting, which implies x-amount in terms of sales-qualified leads and closed deals.

    Developing a more robust sales function for your software portfolio investment is critical. By partnering with a sales outsourcing company, you receive access to sales metric tools, along with knowledgeable guidance for interpreting the trending data.

    This is the first step in understanding what your software portfolio investment needs in order to grow and gain market value.

    Ready to learn more about sales outsourcing to drive revenue for your software portfolio investment?

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