Do you recognize this scenario? You set ambitious revenue targets, but they feel more like wishful thinking than a solid plan. It’s a familiar feeling for many leaders – that gap between where you are and where you want to be can feel vast and, frankly, a little daunting. Be honest: How does your team really approach revenue planning? 
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Is it:

A) "Let's just beat last year's numbers!" (The Optimist's Gambit)

B) "We'll figure it out somehow!" (The Wing-and-a-Prayer Approach)

C) A mix of both...and a little panic? 😰 (The All-Too-Common Reality)

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If any of these resonate, you’re not alone. Many businesses, driven by ambition, fall into the trap of setting lofty revenue goals without the concrete, step-by-step strategy to actually achieve them. It’s like charting a course across the ocean without a map or compass – you might get somewhere, but the odds are stacked against you.
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At Kettle Hole Partners, we believe in a more grounded, strategic approach to revenue planning – one that replaces guesswork with insight and hope with a clear path forward. It’s about building a realistic roadmap that your team can execute with confidence.
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Here’s a more effective (and significantly less stressful) way to plan revenue, focusing on building a solid foundation before reaching for the stars:
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1. Establish a Baseline: Know Your Ground Floor

Before you start projecting hockey-stick growth, take a hard, honest look at your current trajectory. What revenue are you guaranteed to generate based on your existing contracts, recurring business, and current sales momentum? Think of this as your “no extra effort” scenario – the revenue that will likely come in even if you don’t launch any new initiatives. This baseline provides a crucial anchor point for your planning.
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2. Add Proven Growth: Leverage What Works

Next, factor in the revenue you can confidently expect from strategies and initiatives that have a proven track record of delivering results. These are the tactics you’ve tested, refined, and you know generate a predictable return. This layer of revenue represents your reliable growth engine – the strategies you can scale with confidence.
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3. Plan for Smart Experiments: Invest in Learning, Not Just Projections

This is where things get interesting. Instead of simply pulling revenue numbers out of thin air for new ideas, identify 4-5 testable tactics that you believe have the potential to boost sales. The crucial difference here? Don't include the projected revenue from these tests in your core revenue forecast. Instead, meticulously track the costs associated with these experiments and treat them as investments in learning. The goal here isn't immediate revenue but rather gaining valuable insights into what truly moves the needle for your business.
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Why this approach? Because adding revenue from unproven sources is, frankly, planning to fail. It sets unrealistic expectations, leads to missed targets, and ultimately breeds frustration within your team. By focusing on your baseline, leveraging proven growth, and strategically experimenting, you build a revenue plan grounded in reality, not wishful thinking.

This approach allows you to:

• Set realistic and achievable goals: Based on a clear understanding of your current performance and proven strategies.
• Allocate resources effectively: By focusing investments on what you know works and strategically testing new opportunities.
• Foster a culture of learning and experimentation: Recognizing that not every new idea will be a home run, but every experiment provides valuable data.
• Build team confidence: By working towards achievable targets and celebrating tangible progress.
  
  

We’re firm believers that sustainable growth comes from a place of clarity and strategic action. So, ditch the guesswork and embrace a more informed approach to revenue planning.

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