Planning revenue should feel like you’re creating a positive route for success. However, oftentimes, businesses will end up with a plan that’s more of a hopeful guess than a line of clear direction. If your revenue forecasts aren’t quite landing, or growth feels like it’s stalling, you might be tripping over some common mistakes.
Let’s walk through eight of these mistakes that could be holding back your revenue planning, and how to steer clear of them.
1. Copying Last Year’s Results
What happens: Many businesses take last year’s numbers, add a percentage, and call it a forecast. It’s quick, but it misses what’s really driving growth or decline.
A better way: Base your plan on real inputs and data: how many new customers do you expect, what is your pricing model, and what are your retention rates?
2. Treating Every Customer the Same
What happens: Not all customers spend or stay with you in the same way. Mixing different types of customers together will muddy your forecasts.
A better way: Split your revenue into meaningful groups. Do this by customer type, their region, or their contract size. This will help you to plan more accurately.
3. Forgetting About Seasonality
What happens: Businesses that don’t factor in seasonal peaks and dips can be caught off guard by cash shortfalls during quieter periods.
A better way: Look at past patterns and reflect them in your plan. That way, the quiet months won’t catch you off guard.
4. Only Planning for One Outcome
What happens: If your revenue plan only has a single “best guess,” you’ll struggle when things don’t go exactly to plan.
A better way: Map out at least three versions of your plan, Make these optimistic, conservative, and realistic. You’ll be ready for whatever comes your way!
5. Looking at Revenue in Isolation
What happens: It’s easy to celebrate increased growth while missing the impact on costs, profit, or cash flow.
A better way: Connect revenue planning with your wider financial forecast. Growth is only good if it’s sustainable.
6. Planning in Silos
What happens: Finance builds the plan, but sales and marketing hold the insights that shape it. Without their input, your numbers risk being out of touch.
A better way: Build your revenue plan collaboratively. When everyone has a voice, the forecast is more realistic, and more likely to succeed.
7. Overlooking the Outside World
What happens: The outside world has enormous effects on your business. The economy will shift, new competitors will be introduced, and your supply chain can see hiccups. This can all change your revenue.
A better way: Keep your plan flexible and review it regularly. A living plan adapts as the world does.
8. Wrestling With Spreadsheets
What happens: Spreadsheets are great… until they’re not! Errors can creep in, collaboration is clunky, and testing “what if” scenarios takes forever.
A better way: Switch to a tool built for financial forecasting and planning. With Brixx, you can link revenue to costs and cash flow, test scenarios instantly, and share updates without the spreadsheet headaches.
Get started with our forecasting software so that you can plan your business' future
Avoid financial planning mistakes with Brixx
Avoid Mistakes and Forecast with Brixx
Revenue planning isn’t about predicting the future perfectly. It’s about being prepared. By sidestepping these eight mistakes, you’ll get clearer forecasts, make better decisions, and create more confidence in where your business is heading.
Want to make revenue planning simpler? Try Brixx for free and see how easy accurate forecasting can be.
