Enterprise Sales Pipeline Planning Spreadsheet - With Contract Renewal Probability
Originally published: 31/05/2018 09:41
Last version published: 20/12/2023 13:09
Publication number: ELQ-75181-6
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Enterprise Sales Pipeline Planning Spreadsheet - With Contract Renewal Probability

Set various enterprise contract details and define % to renewal in order to see various 5 year total contract values.

Description
This is an interesting tool that is designed to plan out possible revenue scenarios if you had a given set of contracts that renew in varying amount of months. The unique area of this model is being able to set a % chance that a contract will renew and then by using 'rand' functions in excel we can have the formulas test if the contract renews or not for each renewal date.

If no renewal, then the contract is ended and if it does renew the contract keeps going until the next renewal date.

This logic spans over the course of 5 years and you can test up to 21 clients at a time. The idea here is to have a high level look at what your revenues could be given the confidence you have that a contract will end up renewing or not.

For example, a contract that renews every 4 months with a 50% chance to renew will have a far less chance at still being active at the end of the 5th year, but a contract that renews every 12 months with a 50% chance to renew has a greater chance of still being active at the end of the 5th year.

This logic can fairly effortlessly be extended to account for as many separate clients as needed (up to 1,000's if necessary).

The tutorial video will explain how everything works in detail and it will be shown in google sheets, but the download is in excel. A google sheet link will be provided in the download in case you want to use this in google sheets rather than excel.

Charts and visuals were also added to see probability and revenue of the client lists.

This template is also included in the all models bundle (it will be in the sales pipeline and trackers folder):
- All Models Bundle: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic

This Best Practice includes
1 Excel template and 1 tutorial video

Acquire business license for $45.00

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Further information

Test various scenarios to see expected revenue ranges based on probability to renew per contract.

When you have a smaller number of large clients.

Situations where there is not a % chance to renew contracts or when you have a large amount of contracts/clients (<1,000's) with varying terms.


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