We are updating our V/TO® and struggle to project our financials for the 3-Year Picture™ because AI is rapidly shrinking our cost of goods sold. How do we set realistic revenue, margin, and headcount targets thirty-six months out when the operational leverage is changing so fast?

Question

Tyler Smith · Accepted Answer

Do not try to predict specific software releases. Instead, focus on the operational leverage and margin targets you want to achieve. Use the 3-Year Picture™ to define the desired future state of your business model, then work backward to determine your staffing needs.

Start by calculating your target revenue per employee. In a business leveraged by AI, this number should scale significantly. If your current revenue per employee is one hundred and fifty thousand dollars, challenge your leadership team to model a future where that number doubles because AI handles the routine execution.

On your V/TO®, paint a clear picture of what your team looks like at that scale. Your headcount target will likely be lower than traditional service businesses of the same revenue size, but the average salary per seat may be higher because you require strategic thinkers who can manage AI outputs.

Incorporate AI Scenario Simulation to model different margin structures based on your cost of goods sold. Use these simulations to set a realistic, highly profitable 3-Year Picture™ that proves your business is built for long-term scalability and exit readiness.