What’s the best way to scale your organization?

Sam Altman (President at Y Combinator)
Startup Advice – Sam Altman

Here is some of the best startup advice I’ve heard or given (mostly heard): (a) Make something people want and (b) A great team and a great market are both critically important—you have to have both. The debate about which is more important is silly.

What’s the best way to recruit?

Chad Dickerson (CEO & President @ Etsy)
MBA Mondays: Guest Post From Chad Dickerson – AVC

Typically, candidates want to know two basic things about your company: 1) how is the company doing from a business standpoint? and 2) does this company operate in a way that I can believe in? The second is arguably more important than the first, since performance metrics rise and fall, valuations go up and down, and stock prices fluctuate. Culture and values persist.

What’s the best way to plan headcount for your sales team?

David Sacks (CEO at Zenefits)
New Sales Models – David Sacks, Founder and CEO of Yammer – YouTube

If you’re reps are hitting 80% or 70% of quota within 6 months, something like $25k in six month, keep hiring them. If your team achievement drops below 70% (of quota) – you probably need to take a step back and digest. That’s probably correct in 80% of cases.

What’s the best way to plan headcount for your sales team?

Tomasz Tunguz (Partner at Redpoint Ventures)
Startup Best Practices 13 – Patience with Unit Economics

Mark [Roberge, CRO at Hubspot] uses his sales teams’ performance to determine how quickly he grows the sales team. For example, a startup employing Mark’s strategy might have a $4k MRR quota for its five person sales team. The VP of sales would then tell the existing sales team, if they exceed $4. 5k MRR quota next month, there won’t be any incremental hires. And the quota then increase the next month to $5. 0k, and so on until the team can no lo… (read more)

What’s the best way to manage your board?

David Jackson (Founder, Seeking Alpha)
For SaaS startups — how to avoid increasing costs inefficiently and prematurely | A Founder’s Notebook

A frequent VC error is to push companies to scale prematurely. If VCs want the money they put into a company to be deployed immediately and aggressively, and they have no experience of how to measure product quality, VCs may push to add sales people before the product is good enough.