Inputs impact
Model Documentation
Sales and Marketing funnel
The model’s sales and marketing funnel drives the number of live customers:
- Sales-sourced open opportunities are generated by I/Cs (individual contributors) in the SDR and AE departments (at a rate defined by inputs on tthe “Funnel: Top” tab).
- Marketing-sourced open opportunities come either directly from marketing spend (if you choose the Simplified option on the “Funnel: Top” tab), or from marketing spend -> MQL -> SQL -> Open Opp conversions if you choose Extended (inputs for which are on the “Marketing Funnel: Extended” tab).
You can see the contribution of each on the “Funnel” workpaper tab as well as the “MQL and SQL” tab (labeled in orange).
Input tabs and their impact on projections
See below for a list of input tabs and their effect on projections.
Marketing spend and outbound sales efforts ⮕ expenses and # of leads/opportunities (eventually revenue)
Conversion rates and cost to acquire leads and opportunities ⮕ # of leads/opportunities (eventually revenue)
Win rate, deal size, setup phase, and customer behavior (upgrades/downgrades/churn) ⮕ revenue
Capital, commissions, operating expenses ⮕ expenses and cash
Current employees and inputs used in Generate Customers and Staff script ⮕ expenses and # of sales reps (eventually revenue)
Current customers ⮕ revenue
Recent sales and marketing funnel activity ⮕ expenses and revenue
Historical revenue and expenses ⮕ results presented on financial statements
Historical assets and liabilities ⮕ results presented on financial statements
Inputs that impact revenue projections
Inputs from the following tabs affect revenue and the timing of revenue:
- Customers: projected revenue from existing customers
- Headcount: # of Account Executives (AEs) and Sales Development Reps (SDRs) affect # of Open Opportunities
- Funnel: Top: marketing spend affects # of Open Opportunities
- Marketing Funnel: Simplified or Marketing Funnel: Extended: affects # of Open Opportunities
- Funnel: Bottom: affects # of Closed Won Opportunities, deal size, and more
- Actuals: affects # of Open Opportunities, Closed Won Opportunities, and more
Inputs that impact cash projections
Inputs from the following tabs affect cash flows and their timing:
- All inputs that affect Revenue (see above)
- Other inputs: contains inputs that affect projected expenses, receivables collections timing, and other Balance Sheet balances
- Income Statement Import: affects projected expenses
- Balance Sheet Import: starting point for cash balance