No one makes this plan

Show Notes

There are four plans a business needs; Budget, people and product. But almost everyone forgets number 4: The revenue plan.

We’re fixing that in this episode but diving into what problems it’s causing for you, how to think about your engine and creating a revenue plan.

Creators & Guests

Host

Mikkel Plaehn

Head of Demand at Growblocks

Host

Toni Hohlbein

CEO & Co-founder at Growblocks

What is The Revenue Formula?

This podcast is about scaling tech startups.

Hosted by Toni Hohlbein & Mikkel Plaehn, together they look at the full funnel.

With a combined 20 years of experience in B2B SaaS and 3 exits, they discuss growing pains, challenges and opportunities they’ve faced. Whether you're working in RevOps, sales, operations, finance or marketing - if you care about revenue, you'll care about this podcast.

If there’s one thing they hate, it’s talk. We know, it’s a bit of an oxymoron. But execution and focus is the key - that’s why each episode is designed to give 1-2 very concrete takeaways.

[00:00:00] Toni: hey everyone, this is Toni Holbein. You are listening to the Revenue Formula. In today's episode, we are going to talk about the one plan that no one makes, Why this is a massive problem for you and probably will lead to you not hitting next year, and we will obviously cover what it is and how to create it.
[00:00:43] Toni: Well, let's go. What are we talking about today?
[00:00:45] Mikkel: Nicole? So today we're gonna talk about, you know, four plans.
[00:00:49] Toni: Four. I thought there are only three plans. Yeah,
[00:00:51] Mikkel: exactly. There's at least three plans being made and there's a fourth that no one is making for some reason. And makes me really sad actually. Yeah. And it should make you sad as well if you're listening because it is critical. Yes, it is absolutely critical. So the, Let's go through the plans. The first one that any business will have.
[00:01:09] Toni: first plan is a budget.
[00:01:12] Mikkel: the line. Oh, okay. Yeah. Budget. They're gonna have a budget.
[00:01:17] everyone is gonna have a budget. So why is everyone having a budget? Well, it's a, it's a, a governance piece.
[00:01:24] Mikkel: Mm.
[00:01:24] Toni: So you, you're running a company, you have a board. what do you need to have? Well, you need to put forward a budget so the board can improve that, that you're the ceo, let's just say you're the ceo, can go forward and use, use that, use that budget to, you know, spend money and achieve business goals and, and stuff like that.
[00:01:45] So everyone needs to have a budget and, and there's one role that's hired to create that budget. It's called the cfo, and, and he or she oversees. You know, changes there and if you're going above and below and so forth, So that's, that's a plan that definitely everyone has. Yeah. What is another plan?
[00:02:01] Mikkel: The roadmap. What are we gonna build? What's product gonna do for the next 12 months that's gonna have an impact on the business, On our customers?
[00:02:09] Future customers? Yes. Super critical. Is needed for marketing to align what is gonna happen? Are there any campaigns we can go and create? It also informs potentially headcount and, you know, a bunch of other things that's gonna happen throughout the year. And any business in B2B SaaS, they're gonna have some kind of a roadmap to, to guide that team.
[00:02:29] And that's, that's usually the other plan.
[00:02:31] Toni: Yep. And then the third plan. Kind of an straightforward, easy one is you can kind of either the hiring plan or the people plan, I would say this is even, this is even a plan that is not always fully done.
[00:02:47] But the, the reason why you will have that or something similar to it is because you have the budget and the budget is based on people to a large degree. And in many cases it's also based on adding more people to the team, which then basically is your hiring plan, right? Yeah.
[00:03:02] Mikkel: And I think this is where most business are gonna. This is more than enough. Now we, we know the money, we know the people and we know the products. Yes. So let's just go. But there is a fourth plan.
[00:03:12] Toni: So on the fourth plan is, is the revenue plan. Yeah. And I think what, I mean, obviously, you know, from our perspective that's straightforward. You, you should have a revenue plan.
[00:03:26] But what is counterintuitive in many cases, number one, Very few will have it. And therefore there's a little bit of, well, we got here without it and it worked in those other 20 companies that worked at, so why do we need this now? Right? There's a little bit of this, this approach to that problem.
[00:03:45] Mikkel: And they're gonna say in the budget, there's a line called revenue and we have targets. Isn't that, isn't that more than enough? Do we, like, do we need a revenue plan?
[00:03:54] Toni: Yes. and that is a great question, right? And, and the, the line and the, and the budget usually is, let's just say very, very thin, very straightforward.
[00:04:03] And then there's some derivatives of this. But if you really think about it and you turn it around, it's a little bit like having a. Roadmap for your product where you basically are saying here at the end of the year, we want to have a fantastic product. and you know, here are the getting a little bit better fantastic product steps we need to take each month without the.
[00:04:27] Thinking that usually goes into it is like, well, what, what does it actually mean? What does it mean to have a fantastic product? and do we have the engineers and the front enders and the technology and all of that stuff to actually create that? Right? And what happens in the roadmap is very much a bottom up planning process with, sure, a couple of things are still open in the end, but you try and figure out what are the resources that we have that might get us to that end result?
[00:04:53] And that's simply not what you have. For revenue in your budget. You just don't have that. You have the revenue line item. Usually this is coming up because you want to get to somewhere, and then this is a nice, you know, increasing line graph that goes from A to B. and, finance kind of stops there actually.
[00:05:14] And the, and the reason why they stopped there is because the, let's just say the, first principle thinking. It's extremely difficult to pull off. Right. And finance actually does that, does that approach a lot and really well on the, on the, finance and the cost side. Yeah. Right. and it starts with the very simple principle of there's money coming into the business.
[00:05:39] and yes, we don't know a thousand percent how it's being created, but let's just say money comes into the. and now there's money being spent across sales, marketing, r and d, general and admin. And then, you know, there's money left in the bank account afterwards. Right. And the, the, the modeling and the logicing that goes on in that part is pretty sophisticated, honestly.
[00:06:01] and in many cases, sometimes I would even say too sophisticated for the, spot that a company is at that point. But it's obviously not only.
[00:06:10] Toni: The salary that someone is, you know, due to be paid, but it's also, taxes and tax implications is also. Lunch, you know, making fun of this. But yeah, it's, it's commission plans and so forth.
[00:06:24] it's all kinds of other costs that might come up. or we have a funding round that also costs a lot of money to close a funding round, by the way. and, you know, these, these, these things, how they then connect together, that then gives your, your cost plan. And if that level of detail of thinking of how these things actually being built up, again, bottom up, what is actually happening in the real world that's gonna impact this?
[00:06:47] if that were to be skipped over in a way where a CFO just says, Well, all of that detail, it's not necessary, because we know we are gonna spend a million the first month, 1.2 million next month, 1.3 million the month after, and so forth. If he or she would present that, you know, quote unquote budget, how we gonna make so much money?
[00:07:12] We're gonna spend so much money and we're gonna have so much money left on the bank account. If this was three line items, that person would get fired on the spot. It's like, well that's obviously not enough. Yeah. What are you talking about? You know, we need to know all the details behind it. And the funny thing is, while this is totally the approach for cost, For revenue.
[00:07:33] It's not that for revenue. It's like, Oh yeah, no, that's, that's great. We're gonna do this thing that we don't have a f-ing clue how to achieve it. We're spending a bunch of money on it. We don't know how that money converts into revenue. but we'll call it a day and say, No, we don't need a revenue plan.
[00:07:49] It's fine. We, we have things under control.
[00:07:52] Mikkel: So what problem is this creating if you don't have a revenue plan, Let's just say you run with the three plans. What's, what's really the problem here?
[00:07:59] Toni: Yeah. So the, the symptoms are, and you know, this is stuff that comes up all the time. It might be, reps not hitting quota.
[00:08:08] That's a typical one. Everyone is complaining about this and there are a couple of reasons why that is the problem. There might be things and there's a, there's a backwards one, but, but might be things like, Oh, my MQL aren't converting. In brackets as I planned, by the way. And that doesn't mean that marketing is creating good or bad MQLs, it just means that they used flawed inputs, kind of a blended conversion rate, and then things happen and obviously those MQLs aren't converting as they thought they would.
[00:08:37] it could be that hiring is being too late. and that feels kind of like a stupid mistake.
[00:08:46] Mikkel: especially if you have a hiring plan,
[00:08:48] Toni: especially if your hiring plan. But the VP of sales will at some point just say, Hey, q3, q4, that's really difficult. because we only have those folks in their seats.
[00:09:00] I don't know. We, we, we only hired them in August. Which is according to the budget, by the way, and the hiring plan. So all of this was maybe on time, but then, the VP of sales would reflect back and be like, Well, they're actually not ramped up yet. Actually not, you know, producing yet. The opportunities that they're producing, they're in pipeline, but they're not closing yet.
[00:09:21] and, this will be then when that potentially, that planning mistake will be realized, but it, you know, by that time will obviously be too late. And then at the end of the day, You might have something, you know, someone might say the, the, the, our payback is too high. and, you know, whatever that means.
[00:09:41] And it could be according to a benchmark or according to your own calculation, but what it really means, Is that it's higher than whatever you had planned for. And the reason that is, is that, you didn't think about the revenue plan and also being created, the time delay that you have in there, you know, the different, you know, blended pipeline sources kind of coming into this, creating all kinds of complexities, which then leads to an outcome, you know, revenue created that is below your expectations, especially according to the cost base, which then triggers you to say, Well, this is too high.
[00:10:15] But in reality, It's perfectly correct. It's that it should have been like that. It's not wrong. It should have been like that. You can still have an opinion whether it should be high or lower, but how it came to be is perfectly correct. Yeah.
[00:10:31] Mikkel: So effectively what you're saying is by not making this plan, you're creating problems for yourself.
[00:10:37] Problems that could have been avoided, for example. Blended opportunities. You won't see that in a spreadsheet. And, and, maybe you just describe for the listener, because you've dropped blended cvr, blended opportunities, what is it exactly that's happening? What is blended opportunities? What, what do we mean here?
[00:10:53] Toni: Yeah, so let's just say you have, two, let's just stick it super simple. Two different channels. Inbound outbound, those are your two channels. And, the inbound side obviously has a different behavior, converts higher, converts faster, maybe converts for lower, average contract value. and that is one amount.
[00:11:15] And then you have an outbound side that basically has the inverse and then what's gonna happen in, in a very simple convers, calculation, basically. Blend those two channels, you're not aware that you're blending them, by the way. So sometimes counterintuitive we call it, but you blend all of this together and then you look at the average of how they're converting and so forth, and you get a number.
[00:11:34] What's gonna happen next year is that you're probably gonna. Increase one or the other channel more than last year, which basically means that all of your blended conversion rates will start drifting in one or the other direction, which then means that your plan is off and usually your plan is off, not in the good direction.
[00:11:53] It's usually in the bad direction. Right? And another, another blended conversion rate you might find on the MQL level. and let's just say you have two main buckets of MQs. I have some opinions on that, but whatever. Let's just say you have two main buckets of MQs. One bucket is high intent, high intent leads, so a demo request.
[00:12:18] Trial request, maybe, you know, a quote request or something like that. So true hand raises, Hey, I wanna buy this product, maybe. and then you might have another MQL bucket that is more the white paper, download the, webinar, you know, attendance and stuff like that. And you basically say, Well, our MQL conversion rate is X blended conversion rate.
[00:12:44] and then next year, Let's just say you did, you know, with a thousand MQLs here at that conversion rate last year. Now for next year, the CFO says, Well, you need, 2000. And we will take that conversion rate that I really scientifically, you know, calculated from last year and we'll take it forward.
[00:13:02] Because otherwise you're not really doing a job if you're not hitting those efficiency metrics. Right Mikkel?, it's a fact. And, and in reality, what's gonna happen is, the, the VP marketing will obviously be held accountable largely towards the MQL number. what that person will do is scale. Which, you know, obviously, but it will usually tilt towards the lower converting side of MQs, which then means the overall blended conversion rate of all of those new MQs we've been creating next year will, you know, tilt towards the lower side, which then basically ends up, and this, these m qls aren't converting that well.
[00:13:42] Right. It's again, it's, they are actually not converting better or worse. That's actually, you know, factually speaking, not true. they're converting like they should. you just didn't plan for it in the right way. Yes. And therefore you come to the conclusion of, oh, they're converting worse, which is completely wrong.
[00:14:00] Mikkel: So you've seen quite a few rev revenue plans. What, you know, the ones you've seen, what do they contain? What do they look like? I think it's important for us to paint a picture of, how that plan is different compared to the others, so people can actually start reflecting over building a plan themselves.
[00:14:20] Toni: I think what you need to do first is you need to internalize the logic of your revenue engine. I think step number one sounds very, you know, very fluff and very, very high level. But basically to ask yourself, how is a customer created? How does that actually happen? How do we get to the point of having a customer?
[00:14:42] Then he will think like, Well, you know, we just signed them using the contract and so forth and. Continue on that path, continue on that path and you'll realize that you need to create an opportunity first. and an opportunity in, in my definition and many other people's definition is a start of a sales process, however you define that starting point.
[00:15:06] But it's a sales process and you will need a few sales process. Sees to be started in order to get to one customer. And for your businesses it might be you need to have 10 opportunities created and one, one, it might be five, whatever. but that will be the first realization, right? And that's pretty straightforward.
[00:15:23] And then the question is, Okay, cool. Now that I know that it's really about this opportunity piece here, how do I create those opportunities? Right? How is that being. And that's very quickly where you find out, oh, wait a minute, there's those outbound reps. They create opportunities and it really scales with the amount of outbound reps and their productivity that, you know, those opportunities go out for outbound.
[00:15:44] And then for inbound, it's, it's a different track. It's leads and, and so forth, right? So basically that's the first step you need to realize this is how your funnel works out. And. You know, once you go, I sometimes say it's easier to solve and labyrinth from going a maze, from going, from the, from the inside out than to go from outside in.
[00:16:03] I'm not sure if this is the same for everyone. I'm just saying it's the same for everyone. and this is the same concept here, right? Instead of going from the try and find your maze from the outside in, Start with a customer, so the inside of the mace, and work yourself out. And then you, you will learn a bunch of really cool things in the way.
[00:16:19] so you have now that logic. Cool. other people might call it the inverse funnel, by the way. there's, you know, this is not a new concept. So logic, achieved. And then the next thing is, then kind of really going into the planning motion. Yeah. planning motion now is okay. we are here in revenue today.
[00:16:40] We wanna go, over there in revenue, you know, end of next year. Yeah. first what you need to figure out is where will you go, without anything changing. If you were to keep going as you are with the amount of salespeople that you have, with the amount of ads that you, you know, buy and so forth with your upsell and churn, where would you land at the end of the year?
[00:17:05] And you might land either lower than you are today. Usually that's driven by, too high churn. or you might end higher than you are this year. And this is usually driven by net retention rate being above a hundred percent. and now that you have that number where you might end up by the end of, next year, you will have now a delta a gap between that number and where you wanna go.
[00:17:26] And now we need to figure out how you're gonna fill this gap up, right? And that gap is being filled up by you increasing your revenue engine. That's how we really need to think about it. So increasing the revenue engine then leads to an increased output of that revenue
[00:17:41] Mikkel: Mm-hmm.
[00:17:42] Toni: and increasing that revenue engine usually then means you need to hire a bunch of more outbound reps if this is your channel or you need to, launch a couple of more marketing campaigns, or you need to launch a new market and so forth.
[00:17:54] Right. and then the, the, the thing is right now you're going through all the inputs that you're dialing up. and we've talked about this on, on the, on the show previously, the 10% rule to, to double revenue. You shouldn't only look at, you know, adding more inputs all the time. You should be looking at, figuring out how to also improve some of these things in between, right?
[00:18:15] So really you're looking at two or three different buckets of projects. And I dunno, we, we are calling like that. I think we are probably potentially the first ones thinking about it like this. Again, scale. Projects. So adding more inputs to something you know, already works. improve projects. So taking some of those channels that work and try and make them a little bit better.
[00:18:36] Mm-hmm. and then evolve projects, really those are new channels, new markets, new segments, new products, that basically start out on the, on the, on the bad side of the S-curve. will be very inefficient in the beginning, but you need to invest in those because you want to get to the good side of the S-curve.
[00:18:54], because the other channels where you are on the nice side of the S-curve, they will go to the bad side of the S curve, you just stack them on top of each other, right? And basically what you wanna do is you wanna, find a really nice mix that you believe in, between the inputs that you add.
[00:19:13] Have a bottom up effect, not the, Oh, I need so many AEs for that number. It's like, know where, where those opportunities coming from. And sure, I need AEs to work through that. but also mix in potential conversion rate optimization, across, maybe you are working on. Improving your acv, maybe you are launching a new product, maybe you're doing, something on the retention side to drive up, you know, gross retention rate and so forth.
[00:19:40] You actually wanna look at all of these things together to figure out where, you know, if I put all of that stuff in here, where are we going end up? Yeah. Is that enough to close the gap to the top down number? and once you've done that with all the hires, all the actions, initiatives, projects, whatever. Then you might actually have a revenue plan.
[00:20:01] Mikkel: Yeah, I think, I think what's pretty cool here is we've talked.
[00:20:07] Mikkel: a bit in one of the previous episodes about bringing things from zero to one. So the whole new initiatives, what I like about the concept, and people can call it whatever they want by the way, but having certain labels for the initiatives to make it clear what is the intention or the purpose to some degree behind it.
[00:20:23] Are you optimizing something great? Then that's, that's the focus versus if you're trying to find a new. You can scale in the future. The goal is not to, in a spreadsheet, add in the amount of leads straight off the cuff. It's gonna have a really terrible CAC payback. It's gonna be inefficient. It's gonna take you longer than you think, but it helps level set the conversation a bit.
[00:20:45] And it also, especially if you're working in, in marketing, which is gonna be a very different department, in, in that sense, you won't get pigeonholed into leads. For that initiative. And it's gonna really change, you know, take this podcast we're doing, if we were talking about, hey, we need leads out of it, then we would probably all of a sudden change the whole scope of the show
[00:21:06] Toni: Request a demo. Yeah, request a demo right
[00:21:08] Mikkel: Email me now and, we'll hook you up with that. No, exactly right. So I think those, those labels are incredibly
[00:21:13] Toni: but seriously
[00:21:17] Toni: So actually, so kind of thinking further on that track, this is again, a little bit my, my finance background, my finance background and, you know, I have to admit, Yeah. But also some of the sins, finances is, committing. so one, one friend of mine finance financially on a cool, cool scale up.
[00:21:39] and, and he was like, because we were discussing top down, bottom up. Yeah. it's all, all good conversation, but he was making a joke and was like, Well, Toni, I can hit any revenue number. and he basically said that to his ceo. It's like, Hey, I can hit any revenue number. Just give me the ACV number.
[00:21:57] You know, it's like, yeah, you can just pump up your average contract value can pump up your conversion rates and you can get to whatever revenue number you want at the end of the year. And I think. You know, while this is obviously exaggerating this a little bit, what finance does a lot, and it's, it's, it's obviously a little bit of an issue, putting in some of those expectations.
[00:22:22] Yeah. Let's call them assumptions. Yeah. And the logic goes, well, we should be getting better. Yeah. Every, all, all the time. Right. Which is true. It's, it's a truism. It's like, Yeah, well we are definitely not getting worse. Yeah. So yeah, we're getting better. and then very innocently, so to speak. Then there's, a conversion rate increase baked then, and obviously then they're, they're not unfair, they're not going from five to 10 in August, but they're going from five to 5.2 in January and, and so forth and so forth, and so, and obviously conversion rate increases, ACV increases.
[00:23:02] Fantastic for finance. Yeah, absolutely Fantastic. Why? Well, it's efficiency increases really. You basically have the same cost base, you get more money out, so that's awesome. It checks so many boxes. The problem is, that I've seen in many of those of those spreadsheets is those improvements are built in and hidden away.
[00:23:24] Toni: and don't realize, and people kinda hits you, no people, on the, on the side of executing that stuff, they don't actually realize that that's what's supposed to happen. Yeah. And, that there would actually need to be in concerted effort in order to lift the acv, in order to lift the conversion.
[00:23:41] Right. And then, you know, they find out. Oh, you know, the conversion rate should have gone up. And there's, By the way, when this happens, what I've never seen is a graph that clearly says this is your past conversion rate. Flat. Yeah. This year we are gonna take the conversion up like that. Yeah. And we are half in the year, year in, And you're only down here.
[00:24:03] I've never seen that. You know, that level of transparency from a CFO to their team because it kind. It kind of then triggers the conversation, Well, no one asked me about this convers rate increase. I didn't know anything about it. Why are you doing this? Right? And if you, if you have that level of detail kind of hidden away, and I don't wanna say anyone is, evil in this, in this sense, but if you have it hidden away and sales isn't hitting target, it's so easier than to say, Well, the reason why we didn't have target is because of those lazy sales reps.
[00:24:35] Yeah. That's the reason, they're not converting high enough.
[00:24:39] Mikkel: Yeah. Marketing is also producing terrible beats.
[00:24:41] Toni: They're not converting high enough in my head. As a cfo, I'm omitting that I, you know, had them to improve their conversion rate, by the way. And therefore payback isn't, isn't good enough. I, I, sorry, I'm, I'm sorry. I think the, you know, I don't wanna be a dick, but I think the VP of sales needs to go, you know, Mikkel needs to leave, you know,
[00:25:02] Toni: and, and that's then how that sometimes, that sometimes comes to be, and again, You know, you will avoid something like that by having a very clean, well thought through, data driven revenue plan.
[00:25:18] Mikkel: Yeah. I also really like the fact that it brings, again, it brings transparency.
[00:25:23] So if you have one of these different kinds of projects and you know, hey, we expect. This improvement project to land at this time, q3, whatever, and you can see, well, it's not gonna happen because something happened. We acquired a competitor. Now all the energy is channeled into that work or whatever it is.
[00:25:41] It brings a lot of transparency into that conversation. You can say, Okay, if, if we're gonna be unable to lift that conversion rate, what are the ramifications? For that quarter and the rest of the year on revenue, what changes do we then need to go and make potentially to, to fix that because the team's supposed to delivering, they're stuck, you know, integrating whatever new business we acquired.
[00:26:01] And I think that's to your point of a really important part, that you can have those conversations in the open and make some, you know, decisions with your eyes open.
[00:26:12] Toni: And, you know, I'm aware we're probably running enough time pretty soon, but the one, one fundamental thing underlying here is that sometimes.
[00:26:22] People fail to understand that we have reached a level now in sales and marketing, and cs that basically mirrors the industrialization period. All right? We, we, we moved away from the eighties and nineties. Not that I was around necessarily to know how sales work, but we moved away from this. a sales rep takes the yellow pages, calls through them, or goes door to door knocks and stuff.
[00:26:47] and some reps are better than others and the reason for that is because some reps are better than others. And that made total sense and it was true. And we are now, in this, period of, basically. a production building of revenue. I sometimes also call it, you know, opportunity production.
[00:27:08] Revenue production is a. It's a, it's a, it's a, you know, it's a, how do you call it? It's a assembly line. It's an assembly line. and they're different jobs. Different people have different responsibilities and things need to go hand in hand. and they are obviously still good reps and bad reps.
[00:27:23] They're obviously still, you know, good performing employees and bad performing employees. all of these things actually hang together and when you kind of have this industrial approach to it, then, you know, take, you know, tweaking some things here and. That's the right way to go about it versus, hey, we should just be getting a little bit better all the time.
[00:27:43] And those are easy to learn, right? And, and therefore then the conversion rate will go up, which is still, this, sales is more of an art than a science thinking. that is, I think, underlying some of those, some of those convers, you know, thinking. these things just magically will go up and we can't explain how it will happen, but the things you can by now explain how it's gonna happen.
[00:28:08] and, and if you can explain and you can model it in, you can build it in and you can have a good conversation about it. And that is something that you can have a great discussion in the executive team. With a cfo, present with a VP of sales present, you know, before she gets fired. And, and be like, Hey, you know, what's underlying this whole plan is we need to live the conversion rate.
[00:28:31] Mikkel: Yeah.
[00:28:32] Toni: How are we gonna get this done? Let's have that conversation instead of having lingering in the background and, and so forth. Right? and I think that's, that's also missing, you know, that's missing in, a budget, so to speak. And that's why you need a revenue plan.
[00:28:47] Mikkel: Yep. So let's kind of sum it up here. You started off by saying you need to really understand your engine. Yep. How that works. Meaning all the inputs, all the outputs, the whole, get the logic,
[00:29:00] Toni: the logic, get the logic.
[00:29:01] Mikkel: And then, from there, what was the next one?, baseline. Baseline, Yep. And then the delta.
[00:29:07] Toni: Then you, So once you have the baseline, you will understand the delta.
[00:29:10] Mm-hmm. So the gap. and once you have the gap, you know how you need to increase your revenue engine, This is where the logic comes in. You need to increase your revenue engine to then end up, closing the gap over time. Yeah. Yeah. and if you have this approach about it, I think then, then your chances of hitting that target will 10 x.
[00:29:29] and when something goes wrong, you will know exactly why it went wrong, actually. Right. So that's really helpful. and that's then, Also, by the way, we didn't even discuss that. But now that you have this revenue plan, you might be able to have a conversation with your CFO and be like, Hey, with the budget you're giving me and the head count, I will only get us to this revenue item.
[00:29:52] Yeah. by the end of the year, if you want me to hit the number that you put forward, well, I need more budget. And now you have this back and forth of. Well, if you only get me so much revenue, then we're kind of running out of cash a little bit too much. So I actually, I can't give you that much budget that you're asking and, and now you have this back and forth, which is extremely healthier. That's how it should be.
[00:30:14] Mikkel: And it's even more than that. It's, So this, this point we've covered before, but another piece is, Hey, you baked in a lifting conversion rate. Yeah, but we don't have a single project in here to. What do you think we should do?Like what do you propose we do in order to fix that
[00:30:29] Toni: Didn't we hire you to figure this out,