Learn how to forecast Sales Revenue with your financial model made with Sturppy.
To configure the revenue from your Sales and create the various products/services that you are offering, go to
/Revenues/Sales, here you will be able to configure everything you need. There are a couple of things that you can configure when creating a Sales model, we will go over all of them.
As a starting point, you have to enter your conversion rate and churn rate. These inputs are shared acrosss all of your products.
This is the percentage of leads that become paying customers. You can learn more here.
The percentage of customers that don't renew their subscription each following month. You can learn more here.
You can then add all of the products/services that you want.
You have a lot of options to configure when creating a product or service for a Sales business model. Let's go over each input and see what they mean.
The name of the product, this is just for you to list all of the ones you offer (the name must be unique).
The percentage of customers that buy this particular product. The sum of all the shares between all your products must equal 100 (Struppy helps you to keep this at one-hundred). Usually, more expensive products have a lower shares percentage while cheaper products have an higher shares, but this highly depends on your business.
The cost of the product that is paid just once. You can leave this empty if it is only a recurring payment. For instance, if the first time your customer buys your product it also has to pay an activation fee or an installation fee.
If you enter a value for One-time cost, then you can also enter a value for One-time commission. This is the commission that is paid to the salesman that closed the deal only once.
The cost of the product taht is paid each month. You can leave this empty if it is only paid once.
If you enter a value for Monthly cost, then you can also enter a value for Monthly commission. This is the commission that is paid to the salesman that closed the deal each month.
This is needed if each new customer needs to be served by one of your people (e.g. for the technical installation or the sales-person that needs to follow him until the deal is closed). This will help you model the load on your employees. You can choose a position from the ones that you entered in your hiring plan. (Optional)
The time that is required by the employee defined in Required role to handle a new customer. The max number of clients the that the employee can handle is pecified by the Hiring Rule field in the hiring plan in the SG&A expenses. (Optional)
At the end, you will see how many customers you are going to get for each product and the load over your employees. From the chart you will see the number of customers that need to be served and the number of customers that are actually served, so you can better plan and forecast how many human resources you need.