Planned 20 sales managers. The model said: 5. Reality confirmed it.
SITUATION
B2B distributor, €4-5M revenue. Head of sales came to the owner with a finished proposal: scale the sales team to 20 managers. The math looked solid — average sale × 20 = desired revenue. Before pouring money in, the owner asked us to verify the plan with a model.
WHAT WE FOUND AND DID
- Built a financial model with non-linear cost scaling
- Captured: customer acquisition cost grows disproportionately as lead volume rises
- Identified market capacity ceiling — the lead volume for 20 managers is barely reachable
- Optimum: 5 managers. Beyond that, each new hire adds revenue but kills profit
- Reality validated the model: company hired up to 10 — no profit lift
RESULT
| Sales team structure | 20 → 5 managers |
|---|---|
| Not invested | 15 hires that couldn't be utilised |
| Reality check | Scaling to 10 confirmed the model |
| Decision basis | Model, not a slide |
A salesperson delivers only where there are customers to sell to — and where their acquisition pays off. Beyond that line, every new rep adds revenue and eats profit.