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When you’re in the thick of the SaaS world, targets can often feel like an insurmountable mountain. The numbers are big, the stakes are high, and every quarter feels like a sprint to the finish line. If you’ve ever wondered why your sales targets seem almost impossibly ambitious, let me introduce you to a little something we like to call the T2D3 growth plan.

What is T2D3?

T2D3 stands for Triple, Triple, Double, Double, Double. It’s a growth strategy that’s become the benchmark for SaaS companies aiming for rapid and exponential growth. Here’s a quick breakdown:

  • Year 1: Triple your revenue
  • Year 2: Triple your revenue again
  • Year 3: Double your revenue
  • Year 4: Double your revenue once more
  • Year 5: You guessed it, double your revenue

This sounds intense, right? But it’s the gold standard for companies looking to scale quickly and attract investor attention.

T2D3 growth is the goal for every B2B SaaS company. Every investor wants to hit the next “unicorn”, but reaching that coveted $1B valuation in 5 years is challenging – and rare.T2D3

Why T2D3 Matters

The T2D3 growth plan isn’t just about setting arbitrary targets. It’s about meeting the expectations of investors who are looking for exponential returns on their investments. For SaaS companies, this kind of growth can significantly increase valuation, making the company a more attractive candidate for additional rounds of funding or even a lucrative exit.

According to a report by Bessemer Venture Partners, companies that successfully execute the T2D3 growth plan typically achieve valuations that are 10 to 20 times their annual recurring revenue (ARR) . This is a big deal in the world of venture capital where higher valuation means more money in the bank for everyone involved.

The average growth rate for companies between $1-10MM of ARR was nearly 200%, decreasing to 60% for companies over $100MM+.Bessemer Venture Partners

How T2D3 Shapes Sales Strategies

So, how does this lofty goal affect the day-to-day life of a Chief Revenue Officer (CRO) or Chief Executive Officer (CEO)? Here’s where things get interesting.

The CRO’s Role

As a CRO, you’re on the front lines of making these targets happen. You’re responsible for scaling the sales team, setting ambitious quotas, and ultimately, driving the company’s revenue growth. The T2D3 plan demands a relentless focus on building a high-performing sales organization that can sustain rapid growth over multiple years.

To achieve this, you need to:

  1. Hire the Right Talent: You need salespeople who are not just good, but exceptional. The kind of people who thrive under pressure and can close deals quickly and efficiently.
  2. Implement Effective Sales Processes: Your sales processes need to be scalable and repeatable. This means investing in the right tools and technologies, and continuously refining your approach based on what’s working and what’s not.
  3. Align Sales and Marketing: Ensuring that your sales and marketing teams are working together seamlessly is crucial. A well-aligned team can generate more leads, close more deals, and drive more revenue.
The CEO’s Perspective

As a CEO, your role is to provide the vision and strategic direction that will guide the company towards these ambitious targets. This means making tough decisions about where to invest your resources, how to structure your teams, and what markets to pursue.

You also need to communicate the importance of the T2D3 plan to your entire organization. It’s not enough for just the sales team to be on board – everyone from product development to customer support needs to understand how their work contributes to the company’s growth goals.

Challenges of the T2D3 Model

Let’s not sugarcoat it – the T2D3 model is tough. It places enormous pressure on the sales team and can lead to burnout if not managed properly. It also requires a significant investment in resources, both in terms of hiring talent and investing in the right tools and technologies.

In addition, maintaining this kind of growth year after year can be incredibly challenging. Market conditions change, competition increases, and new obstacles can emerge at any time. Staying on track requires constant vigilance and a willingness to adapt and pivot as needed.

The Pressure on Sales Teams

Salespeople are often the ones who feel the pressure of the T2D3 plan the most. They’re the ones who have to hit those ambitious targets, and the pressure to perform can be immense. This can lead to high turnover rates, as salespeople either burn out or move on to other opportunities.

It’s crucial for leaders to recognize this and take steps to support their sales teams. This might include offering incentives, providing additional training and support, and creating a positive work environment that encourages collaboration and teamwork.

Making the T2D3 Plan Work

So, how do you make the T2D3 plan work for your company? Here are a few strategies that can help:

  1. Set Realistic Targets: While the T2D3 plan is ambitious, it’s important to set targets that are challenging but achievable. This means taking a realistic look at your market, your competition, and your company’s capabilities, and setting targets that push you to grow but aren’t completely out of reach.
  2. Invest in Your Team: Your team is your most valuable asset, so invest in them. This means providing ongoing training and development opportunities, offering competitive compensation and benefits, and creating a positive and supportive work environment.
  3. Leverage Technology: Technology can be a powerful tool for driving growth. Invest in the right tools and technologies to help your team work more efficiently and effectively. This might include CRM systems, marketing automation tools, and data analytics platforms.
  4. Stay Agile: The T2D3 plan requires you to be constantly adapting and evolving. Stay agile by regularly reviewing your progress, identifying areas for improvement, and being willing to pivot as needed.
  5. Focus on Customer Success: Ultimately, your success depends on your ability to deliver value to your customers. Focus on building strong, lasting relationships with your customers and ensuring their success. This will help you retain existing customers and attract new ones, driving growth over the long term.

Final Thoughts

The T2D3 growth plan is not for the faint of heart. It requires a significant investment of time, resources, and energy, and it places a lot of pressure on your sales team. But for those who can make it work, the rewards can be substantial.

As a CRO or CEO, your job is to provide the vision, direction, and support that will help your company achieve these ambitious targets. By focusing on hiring the right talent, implementing effective sales processes, and leveraging technology, you can build a high-performing sales organization that can sustain rapid growth over multiple years.

Software leaders are eager to dominate — we expect at least one notable, $5 billion-plus acquisition in 2024. – Forrester

And for the salespeople on the front lines, remember that you’re not alone. The pressure may be high, but with the right support and resources, you can achieve incredible things and help drive your company to new heights.

So the next time you’re staring down a seemingly impossible sales target, take a deep breath, think about the T2D3 plan, and know that you’ve got what it takes to succeed.

By understanding the principles behind the T2D3 growth plan and taking a strategic approach to achieving these targets, you can drive significant growth and position your company for long-term success.

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