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Quoting

Pipeline

The short answer

Your pipeline is the total value of every quote you have sent and not yet had a decision on. It is a forecast, not money — a quote only becomes real income once a client accepts it.

What it means

Adding up every open quote gives you a number, but that number is a guess about the future, not a balance you can spend. Some of those quotes will be won, some will be lost, and a few will simply never get an answer at all.

Treat the pipeline total as a ceiling, not a plan. Your <a href="/glossary/win-rate/">win rate</a> tells you roughly how much of it will actually turn into work — multiply the two together for a realistic figure, rather than planning your diary or your cash flow against the full total.

For example

You have four open quotes worth $1,200, $3,000, $800, and $2,000 — a $7,000 pipeline. Your win rate has run at about 40% this year, so a realistic figure to plan against is closer to $2,800, not the full $7,000.

The mistake to avoid

Treating the pipeline total as booked income and turning down other work to make room for it, when most quotes in most pipelines do not get accepted.

See also

Want this handled automatically?

BizBinder keeps quotes, invoices, deposits, and reminders in one binder, so using the right term is the least of it — the underlying habit runs itself.