What Does “Pipeline” Mean In A Business Context? (7 Helpful Examples)

Have you ever been reading something related to a business and heard the word “pipeline”? Most of the time, this is not talking about a company’s gas or plumbing. Today, we’ll go over what it means when a company talks about their “pipeline”.

What Does “Pipeline” Mean In A Business Context?

“Pipeline” in business refers to the process of a system or idea going from an idea in someone’s mind to an actual thing that the business does or sells. Much like a water pipeline, a business pipeline has ideas going from a source (someone’s mind) to their final destination (reality).

What Does "Pipeline" Mean In A Business Context?

But how do pipelines work? And what does the term mean in different industries?

What Does A Typical Business Pipeline Look Like?

Of course, each business will be different, so the following will not apply to all companies. But, listed below is the general process of how a business takes an idea and turns it into reality.

  1. Idea
    Someone (usually in head office) will have an idea. For example, maybe someone thinks their ice cream company should see M&M flavoured Ice Cream.

  2. Consulting
    The idea will be spoken about to decide if it’s a good idea. For example, maybe everyone at a company’s head office agrees that M&M Ice Cream is a great idea.

  3. Funding
    Money will be put into a project to make it a reality.

  4. Planning
    How this project will be a reality is to be discussed. For example, managers might talk to Ice Cream technicians about the most cost-effective way to make M&M Ice Cream.

  5. Creating
    The product will be created

  6. Marketing
    How to new product will be advertised is decided

  7. Launch
    The product finally comes out into the market

What Does “Pipeline” Mean In A Finance Context?

In the world of finance, the word “pipeline” usually refers to some kind of long term goal. To reach this goal, progress towards it needs to be discussed and decided.

Of course, in the beginning, much of this information will need to be kept discreet. But, that’s just how Pipelines work in finance.

For example, an acquisition pipeline is a list of companies that the holding company may wish to acquire.

What Does “Pipeline” Mean In A Marketing Context?

If you work in marketing, you may have heard the phrase “pipeline marketing”. This is the process of getting people to go from leads to customers who are handing over their money.

There are plenty of methods of pipeline marketing. Maybe a business looks at who likes their page of social media and figures out how to encourage these people to buy. Maybe they offer freebies on their website to get leads. Or maybe they launch some kind of elaborate marketing campaign.

What Does “Pipeline” Mean In A Sales Context?

“Pipeline” in sales is not too dissimilar from “pipeline” in marketing. In sales, it’s also about tracking customers and seeing them go from lead to customer.

However, in sales, there tends to be more focus on how contact is made with people. And also, what kind of people are most likely to become customers. Is it 45-year-old men from working-class towns? Or 19-year-old girls at university?

This kind of information can be vital to a company getting more customers.

Comparing A Business Pipeline To A Water Pipeline

To help you fully understand what “pipeline” means in business, it might be helpful to compare a business pipeline to a water pipeline.

In a water pipeline, the water starts at a source. Usually, this is a reservoir.

An idea in a mind is like the water is the reservoir.

But from the reservoir, it will then travel in a pipeline into several storage tanks and cleaning facilities. Think of these like the stages of an idea becoming a reality.

The idea of going to market is comparable to the water finally coming out of the tap- clean and nice to drink.

What Does “In The Pipeline” Mean?

One phrase you may have heard at some point is “In the pipeline”. When something is “In the pipeline”, this means that it is yet to launch. Perhaps it is currently just an idea, or maybe it’s still being discussed.

But either way, an idea that is just “In the pipeline” has not yet become a reality. However, it does imply that there is a high chance of that happening shortly.

Look out for the phrase “in the pipeline” when you read about upcoming projects.

7 Examples Of “Pipeline” In A Business Context?

1. “We have a few ideas in the pipeline. But we’re just waiting on the extra funding to be able to launch it”

2. “At the end of the pipeline, this project should be able to increase our overall profits by up to 10%. That is assuming it all goes to plan”

3. “It’s not ready to be marketed just yet. It’s not that far down the pipeline just yet. Just let the scientists finish inventing it, and then we can talk about how to sell it”

4. “I know our sales pipeline might seem a bit stalkery. But we’re after customers, and after all, it’s not like we’re going to tell John that his wife has been cheating on him for 16 years”

5. “We need to improve our marketing pipeline. All of our projects seem to be a complete flop. Nobody is finding us on social media and we’re missing out on a huge market”

6. “It’s currently at the consulting stage of the pipeline. I’m talking to people in the office to see what they think of it, and whether or not it can go onto become something greater”

7. “How long does it take for something to go through the pipeline? I came up with this idea 6 months ago! And it’s not even funded yet”

Conclusion

And now you know what it means when a business uses the word “pipeline”. In a business context, a “pipeline” is the process that an idea takes where it goes from inside someone’s brain, to being an actual product that people can buy.

Although the small details of a “pipeline” can vary from industry to industry.

Next time you’re reading a business magazine, or you’re at a meeting, and someone tells you about something “in the pipeline”, you will now have a better idea of what they’re talking about, and what they mean.

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