Building a Revenue Forecast in Google Sheets - Deepstash
A Founder’s Guide to SaaS Revenue Forecasting

A Founder’s Guide to SaaS Revenue Forecasting

baremetrics.com

3

Keep reading for FREE

Building a Revenue Forecast in Google Sheets

Building a Revenue Forecast in Google Sheets

Before implementing automated tools, it's generally helpful to begin revenue forecasting with a simple, accurate spreadsheet model. Just make a copy of this template and follow along.

5

32 reads

Basic Forecasting Options

Basic Forecasting Options

The most straightforward forecasting tools rely on the recent past to predict the future. The "straight-line" method uses historical revenue and growth trends to map high-level revenue expectations. 

Start with your last six months of data and map out the next six months based on your current trajectory. For example, if you had $50k in monthly recurring revenue six months ago and today you have $60k, a straight-line forecast would show that in 6 months, you'll hit $70k in MRR.

5

10 reads

4. Converting customers to MRR

4. Converting customers to MRR

We’ve effectively established the total number of customers we expect each month from the marketing funnel to our expectations for expansion, churn, and contraction. Using these figures and the average revenue per customer (ARPC) for each category, we can make a solid prognosis for MRR.

5

4 reads

3. Revenue forecasting models

3. Revenue forecasting models

Get the number of new customers your marketing funnel will generate each month. Revenue from these customers flows into your new MRR, where we’ll pick up the second part of your revenue forecast.

Aside from attracting new customers, there are a few significant factors impacting MRR:

  • Expansion and contraction (subscription upgrades or downgrades)
  • Churn and reactivation: Customers canceling subscriptions or reactivating a previously canceled subscription.

5

4 reads

The Bottom Line

The Bottom Line

Revenue forecasting is essential, especially for SaaS businesses. Don’t wait until you’ve got an entire finance team ready or investors to satisfy to implement the most advanced cloud forecasting solutions. Getting started with a Google Sheets tool is massively better than not forecasting at all.

5

10 reads

1. Your funnel model

1. Your funnel model

Start by mapping out your marketing funnel data and customer signup information. Understanding each funnel step and conversion rate helps you see the complete process behind your revenue generation.

5

13 reads

The Why?

To build a good forecast, you first need to define where the company is going and how you plan to get there.

Forecasting helps you and the rest of the team constantly answer the question: is what we're doing taking us where we want to go?

5

47 reads

SaaS Revenue Forecasting

SaaS Revenue Forecasting

Any potential lender or investor will want to see a reliable revenue projection to gauge how likely you are to pay their money back (ideally at a large multiple). 

5

61 reads

Creating a Revenue Model

  1. Your funnel model
  2. From funnel to "new customer"
  3. Revenue forecasting models
  4. Converting customers to MRR

5

18 reads

Maintaining Your Revenue Forecast

Once you’ve established your revenue forecasting formulas and the data relationships necessary to build your forecast, it’s simply a matter of refreshing the data and assumptions each month. 

You’ll be able to copy your traffic and conversions data directly from your marketing funnel software. Then input your revenue and churn information. If your assumptions were way off, go ahead and reassess for the next forecast.

5

7 reads

2. From funnel to "new customer"

2. From funnel to "new customer"

After mapping out your historical funnel data, analyze the formulas and how your conversion factors have moved over the past few months. Then, make your best guess what ratios are reasonable going forward.

5

12 reads

CURATED BY

kerem

ぬ-shaped person: Passionate learner having diverse interests. Tech entrepreneur. Obsessive optimizer. Uncomfortably skeptic and curious. Suffering from tsundoku.

Many founders treat revenue forecasting as a luxury, until suddenly, revenue forecasting becomes a necessity. This guide to SaaS revenue forecasting will walk you through building a revenue forecast.

MORE LIKE THIS

Here's What Buyers Look for in SaaS Businesses

Here's What Buyers Look for in SaaS Businesses

baremetrics.com

How To Track Customer Acquisitions:

How To Track Customer Acquisitions:

medium.com

Ready for the next level?

Read Like a Pro

stash-superman-illustration

Explore the World’s

Best Ideas

200,000+ ideas on pretty much any topic. Created by the smartest people around & well-organized so you can explore at will.

An Idea for Everything

Explore the biggest library of insights. And we've infused it with powerful filtering tools so you can easily find what you need.

Knowledge Library

Powerful Saving & Organizational Tools

Save ideas for later reading, for personalized stashes, or for remembering it later.

# Personal Growth

Take Your Ideas

Anywhere

Organize your ideas & listen on the go. And with Pro, there are no limits.

Listen on the go

Just press play and we take care of the words.

Never worry about spotty connections

No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.

Get Organized with Stashes

Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.

Join

2 Million Stashers

4.8

Stars

5,740 Reviews

App Store

4.7

Stars

72,690 Reviews

Google Play

samz905

Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.

Shankul Varada

Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.

Ashley Anthony

This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!

Sean Green

Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.

Jamyson Haug

Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.

Laetitia Berton

I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!

Giovanna Scalzone

Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.

Ghazala Begum

Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving & library

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Personalized recommendations

FAQ

Claim Your Limited Offer

Get Deepstash Pro

BLACK FRIDAY

75% OFF | 1-Year Pro Subscription

Claim Offer