How To Calculate Sales Capacity in Freshsales | Arithmix

Sales capacity is a crucial metric for any business that wants to optimize its sales process. It helps you understand how much sales revenue your team can generate in a given period. By calculating sales capacity, you can set realistic sales targets, allocate resources effectively, and make data-driven decisions that drive growth. In this article, we will discuss what sales capacity is, when it's valuable to calculate it, and how to calculate it in Freshsales.

What Is Sales Capacity?

Sales capacity is the maximum amount of sales revenue that your team can generate in a given period. It's a function of your team's size, productivity, and efficiency. To calculate sales capacity, you need to consider the following factors:

• The number of sales reps on your team
• The average deal size
• The average sales cycle length
• The win rate
• The number of working days in the period

By taking these factors into account, you can estimate how much revenue your team can generate in a given period. This information is valuable for setting sales targets, allocating resources, and measuring performance.

When Is It Valuable To Calculate Sales Capacity?

Calculating sales capacity is valuable in several situations:

• When you're setting sales targets for your team
• When you're planning your sales strategy
• When you're allocating resources to your sales team
• When you're measuring your team's performance

By knowing your team's sales capacity, you can set realistic targets that motivate your team and drive growth. You can also allocate resources effectively, ensuring that your team has the support it needs to succeed. Finally, you can measure your team's performance against its sales capacity, identifying areas for improvement and optimizing your sales process.

How to Calculate Sales Capacity in Freshsales

To calculate sales capacity in Freshsales, you need to follow these steps:

1. Calculate the number of working days in the period
2. Calculate the average deal size
3. Calculate the average sales cycle length
4. Calculate the win rate
5. Multiply the number of sales reps by the number of working days to get the total available selling days
6. Multiply the total available selling days by the win rate to get the number of deals your team can close
7. Multiply the number of deals by the average deal size to get the total sales revenue your team can generate

Once you have this information, you can set realistic sales targets, allocate resources effectively, and measure your team's performance against its sales capacity.

In conclusion, calculating sales capacity is a valuable exercise for any business that wants to optimize its sales process. By understanding your team's sales capacity, you can set realistic targets, allocate resources effectively, and make data-driven decisions that drive growth. With Freshsales, calculating sales capacity is easy and straightforward, allowing you to focus on what matters most: growing your business.

How Do You Calculate Sales Capacity in Freshsales

Freshsales itself isn’t naturally geared towards letting you calculate complex metrics like Sales Capacity. As an alternative, teams typically use products like Arithmix to import data from Freshsales and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Freshsales, combine it with data from other systems, and create calculations like Sales Capacity.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Sales Capacity in Arithmix

Calculating metrics like Sales Capacity is simple in Arithmix. Once you've created your free account, you’ll be able to import your Freshsales data, and use it to create natural language formulas for metrics like Sales Capacity.

Arithmix is designed to give you the power to build any calculations you want on top of your Freshsales data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.