Latitude 39, Inc’s Post

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Good overview of extending "propensity to close" platforms to include the actual revenue coming down the pipe and the automation to ensure the revenue and demand forecasts are always accurate.

Revenue forecasting today requires more than traditional metrics and isolated predictions. In an increasingly complex business environment, forecasting must encompass both sales dynamics and financial performance, integrating these insights to provide a true picture of future revenue. Yet, despite its importance, many companies remain constrained by siloed forecasting models that limit decision-making, accuracy, and long-term growth potential. With the rise of complex revenue models—subscription, consumption-based, and project-driven—companies need to adopt Revenue Intelligence 2.0. This approach moves beyond conventional Revenue intelligence by uniting sales and finance within a single, strategy that shows the complete revenue picture. Check out our guide to learn more: https://hubs.ly/Q02XnxtQ0

Here’s listing a preferred order in which you can build a financial model in Excel. 1/ Know the Benchmark Objectives of your Industry: (i) At what revenue multiples are your competitors getting valued (ii) At what EBITDA multiples are the industry leaders or mature businesses getting valued (iii) How will certain operational metrics like # of users or regulatory license or a B2B deal worth X ARR will increase your multiple or value (iv) Try and set your yearly targets (v) Define ideal LTV/CAC as per industry benchmarks 2/ User Acquisition & Marketing Channels: (i) List out each distribution channel - digital ads, influencer marketing, organic growth, B2B2C partnerships (ii) Define the conversion metrics and funnel for each channel (iii) Know the industry click through rates (CTRs), Return on Ad Spend (ROAS), etc (iv) Finally calculate the Customer Acquisition Cost (CAC) and Blended CAC for all channels 3/ Revenue: (i) Define different revenue streams / subscription packages and pricing for each (ii) Define target % of total users who shall subscribe to each such offering (iii) Estimate growth rates (iv) Estimate churn rate, retention, and upselling/cross-selling potential 4/ Other Variable Costs & Contribution Margin: (i) Material Costs (ii) Shipping, Logistics, RTO, Server charges (depending on business model) (iii) Calculate Contribution Margin (which should be positive on a unit economics level) 5/ Fixed Costs (i) Define Manpower Costs with no. of people, expected salaries, recruitment costs (ii) Estimate admin costs of utilities, tech development, product testing, subscriptions 6/ Cash Flow Dashboard (i) Compile the output from all the above sheets into a Dashboard sheet that gives your North Star Metrics (ii) Show quarterly Gross Burn, and Net Burn after Projected Revenue (iii) Then get to the valuation exercise.

In the face of constant pressure to meet productivity goals, how can sales reps efficiently AND effectively leverage financial info in their pre-call planning? It all comes down to a proven three-step process: research, predict and question. -Research Financial statements are a window into the very heart of any business. Once you know what to look for, peeling back the layers on the income statement, statement of cash flows and balance sheet reveals the story behind the numbers. -Predict It's not merely about understanding where a business stands today but where it's headed tomorrow. By spotting trends and aligning your solutions with the prospect's strategic goals, you demonstrate value and vision. -Question The right questions open doors, minds and opportunities – enabling you to use your research and predictions to engage, not showcase your assumptions. Craft questions that provoke thought, uncover hidden challenges and demonstrate credibility and curiosity. When sales professionals refine their approach with these three steps, they build credibility, foster trust and spark conversations that resonate at the highest levels of decision-making. Read the full guide here: https://lnkd.in/egcy42rs #ValueSelling #sellingtothecsuite #b2bsales

Forma.ai is hosting a virtual event on one of the most important topics in sales compensation - measuring Sales Compensation Plan effectiveness. I look forward to the answer to the question of how to measure the extent to which a great sales comp model contributes to sales growth and profitability.

Unpopular opinion... Accountability and action are the two things you need to become the best in your industry. Yet - you're spending at least $15k/mo on software that is supposed to grow your business but you're not seeing the results. According to Pipelinecrm.com "Revenue from CRM software is predicted to reach over $80 billion by 2025, with a growth rate of 13.4% from 2023." The one thing software can't do? Make your team use it. So before you get wow'ed by a new tool - work on the team who will be using it. If you want help - drop me a DM. Humans are still the most complex beings on this earth but way easier to figure out than new technology. 😉

In the face of constant pressure to meet productivity goals, how can sales reps efficiently AND effectively leverage financial info in their pre-call planning? It all comes down to a proven three-step process: research, predict and question. -Research Financial statements are a window into the very heart of any business. Once you know what to look for, peeling back the layers on the income statement, statement of cash flows and balance sheet reveals the story behind the numbers. -Predict It's not merely about understanding where a business stands today but where it's headed tomorrow. By spotting trends and aligning your solutions with the prospect's strategic goals, you demonstrate value and vision. -Question The right questions open doors, minds and opportunities – enabling you to use your research and predictions to engage, not showcase your assumptions. Craft questions that provoke thought, uncover hidden challenges and demonstrate credibility and curiosity. When sales professionals refine their approach with these three steps, they build credibility, foster trust and spark conversations that resonate at the highest levels of decision-making. Read the full guide here: https://lnkd.in/gY5eqdES #ValueSelling #sellingtothecsuite #b2bsales

In the face of constant pressure to meet productivity goals, how can sales reps efficiently AND effectively leverage financial info in their pre-call planning? It all comes down to a proven three-step process: research, predict and question. -Research Financial statements are a window into the very heart of any business. Once you know what to look for, peeling back the layers on the income statement, statement of cash flows and balance sheet reveals the story behind the numbers. -Predict It's not merely about understanding where a business stands today but where it's headed tomorrow. By spotting trends and aligning your solutions with the prospect's strategic goals, you demonstrate value and vision. -Question The right questions open doors, minds and opportunities – enabling you to use your research and predictions to engage, not showcase your assumptions. Craft questions that provoke thought, uncover hidden challenges and demonstrate credibility and curiosity. When sales professionals refine their approach with these three steps, they build credibility, foster trust and spark conversations that resonate at the highest levels of decision-making. Read the full guide here: https://lnkd.in/gtmi4wZw #ValueSelling #sellingtothecsuite #b2bsales

In the face of constant pressure to meet productivity goals, how can sales reps efficiently AND effectively leverage financial info in their pre-call planning? It all comes down to a proven three-step process: research, predict and question. -Research Financial statements are a window into the very heart of any business. Once you know what to look for, peeling back the layers on the income statement, statement of cash flows and balance sheet reveals the story behind the numbers. -Predict It's not merely about understanding where a business stands today but where it's headed tomorrow. By spotting trends and aligning your solutions with the prospect's strategic goals, you demonstrate value and vision. -Question The right questions open doors, minds and opportunities – enabling you to use your research and predictions to engage, not showcase your assumptions. Craft questions that provoke thought, uncover hidden challenges and demonstrate credibility and curiosity. When sales professionals refine their approach with these three steps, they build credibility, foster trust and spark conversations that resonate at the highest levels of decision-making. Read the full guide here: https://lnkd.in/esWrgg9N #ValueSelling #sellingtothecsuite #b2bsales