How do you set revenue goals for your business?


Early stage technology startup in the software space. It is the beginning of the year or quarter. Do you recommend setting quarterly revenue targets which are based on yearly projection? or do you take things as they come?

Initial sales are always very challenging and I was wondering what strategies more experienced tech entrepreneurs used when starting of their business.


asked Oct 11 '09 at 20:21
Usman Sheikh
1,728 points

2 Answers


It depends on the direction you plan on taking the company. If you plan on growing it organically without outside investments then your plans are your own, and you should take on projects as you feel you are up to them. If you want to raise money from VCs, and are dreaming of an IPO at some point (without which raising money from VCs is very unlikely) then you need to have a clear plan, and follow it though. If you can delay raising money to the point where you have projects and cash flowing in, you might be able to get a better valuation. You will be expected to set quarterly goals from any investor.

That being said, if you can get additional sales in this economy, I say go for it, and update your projections accordingly.

Good luck.

answered Oct 11 '09 at 23:10
Ron Ga
2,181 points



There's a good presentation by Aaron Patzer’s (founder of who talks about that.

answered Oct 11 '09 at 21:46
333 points

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