What are Revenue Projections?
How to use revenue projections in SaaS
Accurate forecasting (accomplished with a forecasting process we’ll discuss later) helps your company understand and prepare for what’s coming. It also helps drive agile, more informed decision-making that maximizes your company’s stability and growth.
Revenue projections are used by SaaS businesses to:
Predict your cash flow. Will your company have the money it needs to invest in new initiatives?
Decide on sales team quotas. How much new business is required to hit the company's revenue goals?
Drive marketing strategies to increase the sales pipeline and decrease churn. What type of promotions, new products, and customer loyalty initiatives should your company put in motion?
Formulate a better-performing business plan. How can you tweak your long-term strategy to strengthen your company's foundation?
Scale your business. How can you continue with your growth trajectory?
Accurate revenue projections set your company up to build expectations for sales reps, properly allocate resources, maintain competitiveness, weather unforeseen obstacles, and reach your revenue goals.