Here's a step by step guide on how to use Canaree's revenue builder.

1. Create your model

2. Go to the revenue tab in the model builder

Click "Financial model builder" in the left hand menu, then click the "Revenue" tab

3. Add revenue stream

Click the "Add revenue stream" button to create your first revenue stream.

If you have multiple revenue streams, you can create several after completing the first stream by repeating this step.

Note! If you have selected a template in the creation of your model, you might already see a revenue stream here. You can delete or edit this by unfolding the revenue stream and clicking the 3 dots at the right.

4. Select a pricing model

The predefined pricing models will help you get started quickly.

Every pricing model is explained - Click the "Learn how it works" tab for examples and more info.

Select the one that fits your revenue best.

Note! You can mix & match multiple pricing models, but every revenue stream can only contain one pricing model.

5. Change the name of the revenue stream

Change the name of your revenue stream so you can tell them apart if you work with multiple revenue streams. Click the settings tab and write your new revenue name.

E.g. "Starter" and "Premium" for SaaS or "Shoes" and "T-shirts" for e-commerce.

6. Adjust labels and calculate your revenue

Adjust the labels in the Pricing and Selling Assumptions tabs, as needed.

Use the Initial Values and Preview tab to calculate a starting point for your revenue.

The calculation formulas will look different depending on which pricing model you have selected.

The revenue field will automatically update as you change the other parameters and cannot be changed.

Click Save Revenue Stream.

Note! If you'd like a simple revenue stream with few customers and simple one-off invoices, follow the above steps but leave all values at 0 and click Save. In the table view you'll be able to manually edit customers and pricing. See next step for how to do that.

7. Adjust revenue

Once you've clicked Save, you will see the table view and you can adjust in more details fx if you want to edit specific months.

Click "Edit" to change price, churn, customers and growth rates.

There are several elements here:

  • Starting month & year
    By default this is set to the same month as your model.
    You can simply delete any values until you want your revenue to start.

  • Starting customer churn
    This is the percentage or value of customers you expect you will lose per month.
    This number will be your starting month, but you can adjust subsequent months.

    Note! This is especially important for SaaS models and will naturally be higher in the beginning, but should lower as the company grows.

  • Starting customer growth
    This is the percentage or value of growth in customers you expect per month.
    This number will be your starting month, but you can adjust subsequent months.

You can drag and copy to apply a new number to the following months.

Click "Update revenue" to save your changes.

Note! Click the settings icon to go back to the original revenue stream flow.

Note! Select the "View graph" to get a visual overview of your revenue.

  • Click the arrows to undo and redo any action.

  • Click a specific year to jump to this year in the revenue table or use sideways scroll

8. Add another revenue stream

Click "Add revenue stream" and follow steps 2-7.

9. Check Advice

As you model your revenue Canaree will automatically add advice to the advice page on things you could improve and things that look good.

Click "Advice" in the left hand menu to see your report.

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