Your Forecast Has No Triggers
Phil Bolton · April 20, 2026 · 3 min read
A founder I work with runs a $6M B2B software business. Q4 2025 was strong. Pipeline looked good going into January. She built her year: revenue up 22%, two engineers hired in Q2, marketing budget up $80K.
By March, three enterprise deals had slipped. Nothing lost, just pushed. She was 17% below January's revenue line.
Her plan had no answer for this. Every spending decision was made against the January number. She was still hiring. The $80K in marketing was committed. Her forecast said she'd catch up in Q2.
She might. But she hadn't defined what she'd do if she didn't.
What a trigger is
A trigger is a specific condition that changes an operating decision.
Not "we'll revisit if things look soft." A trigger is: if Q1 new ARR closes below $X, we push the second engineering hire to Q3. If gross margin drops below 58%, we pause the expanded marketing spend until it recovers.
Most growing companies don't have these. They have a plan, and a gut sense of how the year is going. The plan gets updated quarterly, or when something goes wrong, or not at all.
In a normal year, this is mostly fine. Variance is small, the business corrects. In 2026, with tariff exposure and uneven demand across most sectors, the gap between plan and reality is moving faster than quarterly reviews can catch.
Growing companies don't lack forecasts. They lack the connection between forecasts and operating decisions.
Which variables to watch
For most companies in the $3M-$15M range, three variables drive whether the cash plan holds: how fast new revenue is closing, whether gross margin is holding, and whether headcount is growing faster than revenue.
Pick the two most uncertain in your business right now. Define a threshold for each. Write down what decision that threshold triggers.
For a SaaS business: if monthly new ARR is below $X for two consecutive months, halt discretionary hiring. For a product business: if gross margin drops below 52%, pause planned ad spend until it recovers.
The threshold matters. "Revenue is below plan" isn't actionable. "New ARR has been below $120K for eight consecutive weeks" is. Precision is what separates a policy from a feeling.
This takes an afternoon to build. Most companies don't have it because no one required them to.
When you actually need it
Monthly trigger reviews take 20 minutes when variables and thresholds are already defined. Without them, a miss turns into two hours of spreadsheet archaeology followed by a decision that should have happened six weeks earlier.
Build it now. Check the variables monthly. If the year goes well, you'll never act on them.
A plan without triggers is just a hope with numbers attached.

Phil Bolton
Founder & Principal at Manitou Advisory
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