Sales

Sales Cycle

The total time from first prospect touch to closed-won deal.

Sales Cycle Length is the average time from first qualified contact to closed-won. It varies dramatically by deal size and industry. SMB SaaS: 14-60 days. Mid-market SaaS: 60-180 days. Enterprise SaaS: 6-18 months. Government/healthcare: 12-36 months.

Understanding your sales cycle is critical for pipeline math. To close $X in Q4, you need $X × win-rate-inverse in pipeline at start of cycle. Sales cycles also affect cash flow planning and runway calculations.

Example

A mid-market SaaS company has a 120-day average sales cycle and 30% win rate. To close $1M in Q4, they need $3.3M in pipeline at the start of Q3.

Related terms

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