Opportunity

What is a Sales Opportunity?

An opportunity is a qualified prospect that has progressed beyond initial qualification and has a realistic chance of closing. Opportunities have confirmed need, available budget (or clear funding path), defined timeline, and active engagement in the sales process.

The transition from lead to opportunity (or SQL) is a critical threshold. Before opportunity status, prospects are potential; after opportunity status, they're active deals in your pipeline. Only opportunities should appear in forecasts and sales stage tracking.

Why It Matters

Opportunities are the lifeblood of sales pipelines. Without opportunities, there are no deals. But not every lead should become an opportunity bloating pipelines with unqualified leads creates false confidence and wasted effort.

Clear opportunity definitions also enable accurate forecasting. When opportunities are consistently defined, pipeline value becomes predictable. When anyone can call anything an opportunity, forecasts become fiction.

Benchmarks

• Lead-to-opportunity conversion: 15-30% of qualified leads become opportunities
• Stage duration: Opportunities typically spend 30-90 days in pipeline
• Win rate by stage: 20-40% of opportunities typically convert to closed deals
• Forecast accuracy: Well-defined opportunity stages enable 80%+ forecast accuracy

Best Practices

1. Define clear opportunity criteria - Document exactly what transforms a lead into an opportunity: confirmed need, identified budget, timeline within your sales cycle, and stakeholder engagement.

2. Use stages to track progress - Define opportunity stages that reflect buying progress: discovery, evaluation, proposal, negotiation, closing. Each stage should have clear entry/exit criteria.

3. Require opportunity justification - Force reps to justify why a prospect qualifies as an opportunity. What specific need was confirmed? What budget evidence exists? Who are the stakeholders?

4. Review and close stalled opportunities - Opportunities inactive for 30+ days often won't close. Regular pipeline reviews should identify and close these to maintain accuracy.

5. Track opportunity sources - Know where your best opportunities come from. This data informs lead generation strategy and ICP refinement.

Common Mistakes

• Promoting leads to opportunity status without proper qualification
• Leaving stale opportunities in pipeline indefinitely
• Not tracking opportunity stage duration, missing velocity problems
• Having different opportunity definitions across reps or teams
• Treating all opportunities equally regardless of quality or probability

Key Takeaways

• Opportunities are qualified prospects with realistic closing potential
• Clear criteria prevent pipeline bloat and false confidence
• Opportunity stages enable accurate forecasting and pipeline management
• Stale opportunities should be closed to maintain pipeline accuracy
• Source tracking informs lead generation and ICP refinement