Download our free Excel-based B2B SaaS revenue model template in order to create sales projections for your enterprise SaaS business. The revenue model allows you to add customer acquisition from a sales team, ad spend, and word of mouth channels. Project revenue for both services and software sales. If you provide professional services to help your customers implement your software, you can easily project revenue from one off or recurring services as well as your software as a service revenue. Key features include:
The free SaaS sales forecast template gives you a sneak preview of our premium B2B SaaS Financial Model.
The answer will be different for every entrepreneur, but Jason Lemkin makes a compelling point that you should hire 2 sales people so that they can be measured against each other. Although he makes some compelling arguments, in order to hire 2 salespeople at once, you need to be well funded, or you need to already have significant revenue. My recommendation, if you can, is to focus on founder-led sales until you can afford to hire two sales people at once. In order to know when you can cash flow two sales people you should probably create a full set of financial projections for your B2B SaaS startup.
According to our study of 234 tech startups the average B2B Software startup grew revenue 82% between the 0 to 2 year old stage and the 2 to 4 year old stage. Keep in mind that this represents startups that are self funded that likely grow much slower and startups that raised investor capital and are growing faster than 82%.
According to our study of 102 tech startups projections, we were able to determine that “realistic” first year projections for a B2B SaaS startup should range between $100,000 and $2.6 million. Obviously, this is still a pretty large range, but it does give you some guardrails. A $50 million first year revenue projection for a B2B SaaS business is almost certainly too optimistic.
According to Messaged, a good churn rate for an enterprise SaaS business is between 5 and 7% annually. This means you should have less than a 1% customer churn rate per month.
According to Revenue.io the average sales quota for an enterprise SaaS sales rep is just over $700,000 per year. Top performers might hit $2 to $3 million in ARR SaaS sales per year.
If our free SaaS sales forecast template isn’t quite right for you, we do offer SaaS financial modeling services to help you customize your revenue model to your exact specifications. Let us know if we can help!