sales cycle
The sequence of stages from first contact with a prospect to signed contract. Typical stages: Prospecting → Qualification → Discovery → Demo/Evaluation → Proposal → Negotiation → Close. Average sales cycle length varies enormously by segment: SMB SaaS might be 7–30 days; enterprise deals can run 6–18 months. Cycle length is a key input to cash flow forecasting and quota-setting.
When you'd see it: Sales onboarding, CRM stage configuration, pipeline reviews, forecast modeling.
Why it matters: Understanding cycle length by segment lets finance model revenue timing accurately and lets sales leaders size the pipeline needed to hit targets. Short cycles favor volume; long cycles require a different pipeline math.
Common mistakes: Treating cycle length as fixed. Cycle length varies by deal size, buyer type, and how much internal evaluation a prospect requires. Averaging across segments masks important variation.
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