# Inputs impact

## Model Documentation

## Sales and Marketing funnel

The model’s sales and marketing funnel drives the number of live customers:

- **Sales**-sourced open opportunities are generated by I/Cs (individual contributors) in the SDR and AE departments (at a rate defined by inputs on the “Funnel: Top” tab).
- **Marketing**-sourced open opportunities come either directly from marketing spend (if you choose the Simplified option on the “Funnel: Top” tab), or from marketing spend -> MQL -> SQL -> Open Opp conversions if you choose Extended (inputs for which are on the “Marketing Funnel: Extended” tab).

You can see the contribution of each on the “Funnel” workpaper tab as well as the “MQL and SQL” tab (labeled in orange).

## Input tabs and their impact on projections

See below for a list of input tabs and their effect on projections.

- **Funnel: Top**  
  Marketing spend and outbound sales efforts ⮕ expenses and # of leads/opportunities (eventually revenue)

- **Marketing Funnel: Simplified or Marketing Funnel: Extended**  
  Conversion rates and cost to acquire leads and opportunities ⮕ # of leads/opportunities (eventually revenue)

- **Funnel: Bottom**  
  Win rate, deal size, setup phase, and customer behavior (upgrades/downgrades/churn) ⮕ revenue

- **Other inputs**  
  Capital, commissions, operating expenses ⮕ expenses and cash

- **Headcount**  
  Current employees and inputs used in Generate Customers and Staff script ⮕ expenses and # of sales reps (eventually revenue)

- **Customers**  
  Current customers ⮕ revenue

- **Actuals**  
  Recent sales and marketing funnel activity ⮕ expenses and revenue

- **Income Statement Import**  
  Historical revenue and expenses ⮕ results presented on financial statements

- **Balance Sheet Import**  
  Historical assets and liabilities ⮕ results presented on financial statements

## Inputs that impact revenue projections

Inputs from the following tabs affect revenue and the timing of revenue:

- Customers: projected revenue from existing customers
- Headcount: # of Account Executives (AEs) and Sales Development Reps (SDRs) affect # of Open Opportunities
- Funnel: Top: marketing spend affects # of Open Opportunities
- Marketing Funnel: Simplified or Marketing Funnel: Extended: affects # of Open Opportunities
- Funnel: Bottom: affects # of Closed Won Opportunities, deal size, and more
- Actuals: affects # of Open Opportunities, Closed Won Opportunities, and more

## Inputs that impact cash projections

Inputs from the following tabs affect cash flows and their timing:

- All inputs that affect Revenue (see above)
- Other inputs: contains inputs that affect projected expenses, receivables collections timing, and other Balance Sheet balances
- Income Statement Import: affects projected expenses
- Balance Sheet Import: starting point for cash balance