5-year revenue
€4.1m
Year 5 annual revenue
€1.4m
Recurring revenue, Year 5
57%
Active customers, Year 5
33
Consultants required, Year 5
7
Estimated operating margin, Year 5
2%
Revenue growth
Customer growth
Organisation
Key observations
Your growth scenario requires significant delivery scaling
At your current growth assumptions, your practice would need approximately 5 consultants by Year 3, compared with 2 today.
Recurring revenue becomes increasingly important
By Year 5, approximately 57% of your revenue could come from recurring services and licensing.
Sales capacity may become a bottleneck
Your scenario needs roughly 1.2 sales FTE by Year 3 and is unlikely to be achieved through founder-led sales alone.
Profitability is thin in this scenario
The estimated Year 5 operating margin is 2%. Review rates, utilisation or the cost base before scaling.
Payback falls outside the five-year horizon
With these assumptions, cumulative operating contribution does not turn positive within five years.
Estimated investment payback period
Not within 5 years
- First year with positive operating contribution
- Year 5
- Peak cumulative investment
- €333.8k
Shown by year to avoid false precision.
Simplified P&L
A scenario, not a financial forecast.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | €352.8k | €549.2k | €782.4k | €1.1m | €1.4m |
| Delivery cost | -€255k | -€340k | -€425k | -€510k | -€595k |
| Licensing cost of sales | -€30.6k | -€94.9k | -€169.1k | -€255.3k | -€356.3k |
| Gross profit | €67.2k | €114.3k | €188.4k | €295.3k | €442.5k |
| Sales & marketing | -€128k | -€154k | -€180.4k | -€207.2k | -€245.6k |
| Other estimated operating cost | -€42.3k | -€65.9k | -€93.9k | -€127.3k | -€167.2k |
| Estimated operating contribution (EBIT) | -€103.1k | -€105.6k | -€85.9k | -€39.2k | €29.7k |
| Operating margin | -29% | -19% | -11% | -4% | 2% |
Numbers are only the starting point.
A successful Dynamics 365 business also requires decisions around market positioning, target customers, offering, Microsoft relationship, demand generation, sales execution and delivery capacity.
Turn your business case into a 16-week action plan
Dynamic Factory helps Microsoft partners turn their growth ambition into an executable plan.
How we calculate this
The model combines your assumptions regarding new customers, average project value, recurring services, licensing revenue and organisational capacity to create an illustrative five-year business scenario.
- New customers grow each year according to your chosen pace; Year 1 is ramped for newer practices.
- Project revenue is spread over the project duration. Recurring and licensing revenue follow active customers, minus churn.
- Consultants required = project and recurring services revenue ÷ (rate × billable hours × utilisation), rounded up.
- Sales capacity is estimated from new customers per year and typical deals per salesperson for your customer size.
- Operating contribution = revenue − delivery cost − licensing cost − sales & marketing − other operating cost.
All assumptions used
- New customers per year
- 6
- Average initial project value
- €60,000
- Recurring services per customer / year
- €12,000
- Licensing / cloud per customer / year
- €15,000
- Consultants today
- 2
- Consulting rate / hour
- €120
- Marketing / year
- €40,000
- Growth pace
- balanced
- Billable capacity per consultant
- 1600 hours / year
- Utilisation
- 75%
- Annual cost per consultant (loaded)
- €85,000
- Annual cost per sales FTE
- €110,000
- Licensing margin
- 15%
- Annual customer churn
- 5%
- Recurring revenue growth per customer
- 3%
- Average project duration
- 6 months
- Other operating cost
- 12%