Hogan Consulting / Revenue & operating models
See the business.
Build what’s next.
You have ideas for growth. Let’s work through how they make money, what they require, and how they fit together.
I work with founders to turn revenue opportunities into an operating model: clear assumptions, a monthly outlook, and a visual map of the whole business.
Let’s map your business →01 / See the whole picture
Follow the money.
A Sankey is the visual summary of the model. It brings separate revenue streams into one view and shows how revenue divides between costs and operating profit. The width of each band is proportional to its dollar value.
Fictional example: retail $40k + online $30k + wholesale $20k + events $10k = $100k in revenue. Product costs $50k + operating costs $35k + operating profit $15k = $100k. Simplified illustration, before interest and tax; not client results or a forecast.
Does growing the biggest revenue stream create the best return? Or would another offer contribute more after its delivery costs? The diagram starts the conversation; the assumptions underneath help answer it.
02 / Build the logic underneath
Start with the drivers.
For each stream, we define the customer, the offer, the price, the expected volume, and what it costs to deliver. We separate established revenue from ideas that still need to be tested.
=B2*C2Swipe sideways to explore the spreadsheet →
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Revenue stream | Monthly volume | Price / order | Monthly revenue |
| 2 | Retail | 800 orders | $50 | $40,000 |
| 3 | Online | 500 orders | $60 | $30,000 |
| 4 | Wholesale | 20 orders | $1,000 | $20,000 |
| 5 | Events | 4 bookings | $2,500 | $10,000 |
| 6 | Total revenue | $100,000 |
A new service, wholesale channel or event offer needs more than a sales target. We work through the buyer, delivery capacity, launch timing, accountable owner and success measures before treating it as dependable revenue.
03 / Put it on a timeline
An 18-month view.
Assumptions you can challenge.
Connect the revenue plan to staffing, space, marketing and other operating costs. Phase new initiatives over time so the model reflects when the business can realistically deliver them.
=B2-B3-B4Swipe sideways to explore the spreadsheet →
| A | B | C | D | E | F | |
|---|---|---|---|---|---|---|
| 1 | Monthly plan | Month 1 | Month 3 | Month 6 | Month 12 | Month 18 |
| 2 | Total revenue | $100,000 | $104,040 | $110,408 | $124,337 | $140,024 |
| 3 | Product costs | $50,000 | $52,020 | $55,204 | $62,168 | $70,012 |
| 4 | Operating costs | $35,000 | $36,000 | $37,500 | $40,500 | $43,500 |
| 5 | Operating profit | $15,000 | $16,020 | $17,704 | $21,669 | $26,512 |
Selected months from an illustrative 18-month plan. Revenue grows 2% monthly from $100,000; product costs are 50% of revenue; operating costs begin at $35,000 and increase $500 per month. Figures are rounded to whole dollars and profit is calculated from displayed amounts. These are demonstration assumptions, not recommended targets.
Inventory purchases, equipment, customer payment timing and funding can change cash needs even when operating profit looks healthy. A fuller model adds those schedules so hiring and investment decisions account for the cash required.
04 / Compare the choices
What if the plan changes?
Test slower demand, a new channel, a different price, or the cost of adding capacity. Compare the outcomes before committing the time and money.
=C2-C3-C4Swipe sideways to explore the spreadsheet →
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Monthly scenario | Lower demand | Base case | Expansion |
| 2 | Total revenue | $80,000 | $100,000 | $120,000 |
| 3 | Product costs | $40,000 | $50,000 | $60,000 |
| 4 | Operating costs | $35,000 | $35,000 | $38,000 |
| 5 | Operating profit | $5,000 | $15,000 | $22,000 |
In this fictional example, expansion adds $20,000 in monthly revenue and $7,000 in operating profit after $10,000 in additional product costs and $3,000 in operating costs. We would still need to test demand, delivery capacity and upfront cash needs.
Built with the founder
Your ideas.
A model we can work from.
You bring the vision and knowledge of the business. I bring the structure, analysis and operating perspective to work through it with you.
I can build this for your business.
We’ll work together to map your revenue streams, understand the economics behind each one, and connect them in a model you can actually use. What exists today, what could grow, and what it would take to get there.
Let’s map your business →- Map the business.Identify the channels, products and services bringing money in, plus the costs and shared resources behind them.
- Test the assumptions.Work through pricing, volume, margins and capacity. See what changes when you add a revenue stream or grow an existing one.
- Turn the model into decisions.Agree where to invest, what to prioritize, and which numbers to track as the business grows.
What you can leave with
A revenue map, an editable assumptions workbook, a monthly operating outlook, scenario comparisons, and a clear set of priorities with owners and measures. The scope follows the questions your business needs to answer.
The visuals on this page are static examples. Your working model can be built in a spreadsheet your team can update, with assumptions and limitations clearly documented.