You want to double your $ARR. Simple right? Just focus on double your top of funnel output with the number of MQLs. Nope.
To identify the most efficient path, you need to un-blend your funnel. You can’t look at it as one average funnel. Instead, drill into each of the funnel components and get full funnel visibility.
Capacity planning for supply
Capacity planning for supply is needed to get to your target $ARR. Unbundle to determine the supply needed across all sources of MQL. For example, demos vs webinars.
Once you dig in, you discover how doubling the net output with current resource capacity would only increase $ARR by 1/3 of the target.
Tactically capacity plan for supply. At first glance, this baseline example would justify hiring more AEs or SDRs, increase headcount by 20% to boost your demo intake and reach your target to double $ARR to $3M.
Go deeper. Unbundle the inbound by AE and review win rates, cycle times, ACV. Then take a close look at CAC:PB and deal velocity ratios. Some AEs are more successful.
Capacity plan and have the most successful AE’s take on more. From my experience, AEs are more than happy to increase their individual pipeline capacity versus spreading the pipeline across new hires that typically require at least 6 months on-ramp.
Distribute supply strategically and don’ try to fix with hiring more people. We can always stretch our ability to take on more capacity.