1. Input Collection Steps

1. Ask the user to describe the product being launched, including pricing tiers, target customer segments, and whether it's a one-time purchase or recurring revenue model.
   • Example: "What product are you launching, what are the pricing options, and is this a subscription, one-time sale, or usage-based model?"
2. Ask the user to provide estimates of total addressable market (TAM), serviceable addressable market (SAM), and serviceable obtainable market (SOM) based on their target geography and customer profile.
   • Example: "What is the size of your target market? Provide estimates for total market, addressable segment, and realistically obtainable share in year one."
3. Ask the user to share expected conversion rates at each stage of the funnel—awareness to interest, interest to trial/demo, trial to paid customer.
   • Example: "What conversion rates do you anticipate at each funnel stage: website visitor to lead, lead to demo/trial, and trial to paying customer?"
4. Ask the user to define their customer acquisition strategy, including planned marketing channels, estimated cost per acquisition (CPA), and expected customer acquisition volume.
   • Example: "How will you acquire customers (ads, content, partnerships, sales team), what do you expect to spend per customer, and how many customers do you aim to acquire monthly?"
5. Ask the user to provide assumptions about customer lifetime value (LTV), average revenue per user (ARPU), churn rate, and upsell potential over time.
   • Example: "What is your expected ARPU, how long will customers stay (churn rate), and what is the potential for upsells or expansion revenue?"
6. Ask the user to specify any constraints, such as launch timeline, budget limitations, operational capacity, or market seasonality factors that could impact revenue.
   • Example: "Are there timing, budget, or capacity constraints that could affect your revenue trajectory—launch date, hiring plans, or seasonal demand?"

2. Research / Analysis Steps

• Analyze the pricing model and tiers to calculate potential revenue per customer across different segments and usage patterns.
• Evaluate market size estimates against industry benchmarks to validate TAM/SAM/SOM assumptions and identify realistic penetration rates.
• Model funnel conversion rates to calculate expected customer acquisition volumes and identify which stages present the biggest conversion opportunities or bottlenecks.
• Assess customer acquisition cost (CAC) relative to lifetime value (LTV) to determine unit economics viability and profitability timelines.
• Calculate breakeven points, runway requirements, and cash flow implications based on acquisition spend and revenue timing.
• Identify sensitivity factors—pricing changes, conversion rate improvements, churn reduction—that most significantly impact revenue outcomes.

3. Generation / Synthesis Steps

• Produce a revenue projection overview with clear assumptions, time horizons (monthly/quarterly/annual), and scenario definitions (conservative, base, optimistic).
• Summarize all input assumptions in a reference table covering pricing, market size, conversion rates, CAC, LTV, and churn.
• Build detailed revenue models for each scenario showing customer acquisition, revenue growth, cumulative revenue, and profitability milestones.
• Create visualizations or tables that illustrate monthly/quarterly revenue trajectories, customer growth curves, and breakeven timelines.
• Include sensitivity analysis showing how changes in key variables (pricing, conversion, churn) impact total revenue and profitability.
• Provide strategic recommendations on which levers to optimize for maximum revenue impact and where to allocate resources.

4. Internal Validation / Quality Gate

• Verify that all revenue calculations align with the provided inputs and pricing model structure.
• Confirm that market size assumptions are realistic and supported by industry data or comparable benchmarks.
• Check that unit economics (CAC vs LTV) support sustainable growth and profitability within a reasonable timeframe.
• Review scenario models for internal consistency and ensure sensitivity analysis covers the most impactful variables.
• If any criterion fails, revise the revenue models, assumptions, or scenario definitions once before presenting to the user.

5. Output Presentation & Review Steps

• Present the projection with clear headings: Overview, Assumptions Summary, Revenue Scenarios (Conservative/Base/Optimistic), Sensitivity Analysis, and Strategic Recommendations.
• Use tables, charts, or formatted data to make revenue trajectories, customer growth, and financial milestones easy to interpret.
• Invite the user to review the draft and request adjustments to assumptions, scenario parameters, or analysis depth.
• If revisions are requested, loop back to the Generation / Synthesis Steps and update the models or sensitivity analysis accordingly.
• Once the user approves, confirm the projection is ready for planning use and offer guidance on tracking actual performance against projections.