What is a sales pipeline and how do I set it up?
The pipeline is the visual representation of every open opportunity, laid out by stage. It is the tool that produces both the weighted sales value and the diagnosis: where deals get stuck.
Short answer
- A pipeline is the list of open deals, grouped by stage, from new lead to won or lost.
- Every stage must have an objective entry criterion, not the rep’s gut feeling.
- Four to six stages are enough for most B2B companies.
- Every deal has a value, a probability and an expected close date — that is where the weighted pipeline value comes from.
- A deal with no scheduled next activity is not in the pipeline, it is stalled.
A sample pipeline for a B2B company
Stages with entry criteria
| Stage | Objective entry criterion |
|---|---|
| 1. New lead | Contact details and an identified source exist. |
| 2. Qualified | You confirmed the need, the rough budget and the decision maker. |
| 3. Quote sent | The quote is sent in writing and attached to the deal. |
| 4. Negotiation | The customer replied and you are discussing price or terms. |
| 5. Won / Lost | There is a signed contract or a recorded loss reason. |
How to set the pipeline up in practice
- Write down the 4–6 real stages a sale goes through in your company, in the team’s own words.
- For each stage, write the objective entry criterion in a single sentence.
- Set a default probability per stage (for example 10 / 30 / 50 / 70 / 100%).
- Enforce a rule: every deal has a scheduled next activity, otherwise it shows in the stalled-deals report.
- Add predefined loss reasons — without them you will never know why you lose.
Common setup mistakes
- Stages named after internal activity ("to call", "to discuss") instead of the customer’s state.
- Ten stages for a two-week sale — reps will stop updating them.
- Deals with no estimated value, hence a pipeline that cannot be summed.
- Lost deals left open "so the stats look better" — the weighted value becomes fiction.
How 4softcrm helps
- A visual board with stages you configure yourself, with no custom development.
- Value, probability and expected date on every deal, with a real-time total per stage.
- Deals that sit too long without activity are visually flagged on the board.