In every agency, it’s important to have a running 90-day view of your revenue pipeline. Your revenue pipeline is everything in addition to already confirmed & signed off work. Even prior to actually pitching you should try to quantify as best you can the estimated value of the prospect and which month this is likely to fall into.
How To Manage Your Pipeline Information
This then needs to be joined up with your confirmed work to give a full picture of your potential month on month revenue for the next 3 months.
A summary page should show 3 main figures; target vs confirmed vs potential revenue. This shows you how far you are from your target with your confirmed work and how likely you are to achieve this with your pipeline added in.
You need to split up your pipeline into 2 parts; existing and new clients.
It’s important that you constantly look to your existing client base and that your team is constantly identifying opportunities in terms of both upselling (same service higher fees) and cross-selling (new services).
Increasing revenue with existing clients is much easier than winning new business; you have an existing relationship with these people and hopefully, you’re already delivering a great service to them!
With new clients, it’s important to be realistic about sign off dates. The bigger the client the more likely it is for a decision to take longer as there are more people involved in the decision making process. So be honest about when you think the work will happen.
You also need to include any cost of sales in your revenue forecast to get to ‘net revenue’. Essentially your pipeline should show the value of outsourced work and therefore the actual fees for your agency.
At MAP, we go beyond the compliance and help you to create accurate forecasts to predict revenue, profit and cash. Get in touch here.