Step 2: Run Quarterly Scenario Plans

Build three active versions of the future — stretch, base, and downturn — and use them to proactively adjust hiring, capacity, and vendor plans. This is not just finance work — it’s operational readiness.

Why This Matters

Series B is where planning precision separates companies that scale with confidence from those that overextend and scramble. Scenario planning gives ops teams a framework to anticipate needs and move fast without improvising under pressure. Precision comes from preparation, not prediction.

Key Activities

Define 3 scenarios:
Base: Your current operating plan
Stretch: Accelerated growth case (e.g., 120% plan)
Fire Drill: Downturn or 70% performance case
Align each scenario with:
Hiring cadence
Vendor contracts
Support capacity
Cash runway
Bake scenarios into quarterly team planning
Revisit each quarter as new data comes in

Common Mistakes

Treating scenario planning as a one-time exercise
Creating scenarios but not translating them into ops plans
Ignoring stretch cases that require upfront prep (e.g., CS scaling)
Making deep cuts or big bets without pre-modeling impact
Not involving ops leads in planning process

Signals You're Doing It Right

Each team knows how to respond under different performance cases
Hiring and vendor plans flex with revenue outcomes
The company doesn’t panic — just shifts plans
Support, infra, and tooling are prepped for surges
Budgeting feels like strategy, not guesswork

Red Flags

You miss goals and have no fallback
Hiring continues despite missed revenue milestones
Customer experience breaks during sudden growth
Ops teams scramble when asked to cut or scale fast
The budget doesn’t reflect changes in actual performance

Who Should Own This

CFO, COO, and Functional Leaders (joint responsibility)