What makes a good stage
Each stage should describe something that has happened, not something you hope will happen. “Quote sent” is a fact. “Hot” is a feeling.
- Observable. Anyone can tell whether a deal belongs in the stage.
- In order. Deals move forward one step at a time.
- Few. Five to seven stages is plenty for most small businesses.
- Tied to an action. Each stage implies what you do next.
A simple default pipeline
| Stage | What it means | Next action |
|---|---|---|
| New enquiry | They’ve contacted you; nobody has spoken to them yet. | Reply, ideally the same day. |
| Qualified | You’ve confirmed they need what you do and can go ahead. | Book a call, visit or meeting. |
| Quote sent | They have a price in writing. | Follow up within a few days. |
| Negotiating | They’ve responded with questions or changes. | Revise and confirm. |
| Won | They’ve accepted. | Schedule the work. |
| Lost | They’ve said no or gone quiet for good. | Record why. |
Examples by business type
Trades and home services
New enquiry, site visit booked, quote sent, quote accepted, job scheduled, won, lost.
Consultants and professional services
New enquiry, discovery call, proposal in progress, proposal sent, engagement letter signed, won, lost.
Businesses selling to other businesses
New lead, contacted, demo or meeting held, trial or sample, quote sent, contract signed, won, lost.
Notice that each one reflects how that kind of business actually wins work. Copy the shape, then change the words to match yours.
Put a value and a date on every deal
A pipeline gets far more useful when each deal has an estimated value and an expected close date. Then you can answer questions like “what might we win this month?” and “which big quotes have gone quiet?”.
Many CRMs also let you set a probability for each stage, such as 20% at qualified and 60% at quote sent, to produce a weighted forecast. Our forecasting guide explains how to use that without fooling yourself.
Always record why you lost
A short list of loss reasons, for example price, timing, went with a competitor, no response or not a fit, turns your lost deals into lessons. After a quarter you will see patterns: maybe you lose most small jobs on price, or most big ones because you were slow to quote.
Signs your pipeline stages need fixing
- Deals regularly skip stages, which means some stages don’t reflect real steps.
- Lots of deals sit in one stage for months, which usually means a stage is hiding several different situations.
- People disagree about which stage a deal belongs in, so the definitions aren’t clear enough.
- Your forecast is consistently wrong, often because early stages are treated as more certain than they are.
Fix one thing at a time. Rewrite the definitions, explain them in the next meeting and check again in a month.
Pipeline examples by sale size
Businesses with small, fast sales, such as a $300 service call, may only need three stages: enquiry, quoted, booked. Businesses with large, slow sales, such as a $50,000 fit-out, may need more: enquiry, site visit, design, quote, negotiation, contract. Match the number of stages to the steps your customers actually go through.
Keep it tidy
- Review the pipeline weekly. See our 30-minute pipeline meeting.
- Close out deals that have had no activity for 60 to 90 days.
- Don’t add a stage for every exception. Use a note or a tag instead.
In NovaSoft One the sales pipeline is a drag-and-drop board with value, owner and next date on each card, and you can rename stages or run more than one pipeline to suit how you sell.
Common questions
How many pipeline stages should we have?
Five to seven is enough for most small businesses. If people regularly skip stages, you have too many.
Should we have separate pipelines?
Only if the sales process is genuinely different, for example one-off jobs versus ongoing contracts. Otherwise one pipeline is easier to manage.
This guide is general information for Australian businesses, not legal, tax or financial advice. Check anything specific to your situation with a qualified adviser or the relevant government agency.