Sales and profit forecasts
Draw up a budget for the year ahead, showing what you aim to achieve in terms of sales and profits. Then prepare forecasts showing what you expect to achieve. These forecasts should be updated monthly, looking 12 months ahead:
Base your sales budget and forecasts on last year’s sales figures, so you start from a basis of solid fact. Then make madjustments, allowing for changes in the market and taking into account the impact of each aspect of your marketing activity
Focus on the sales you expect to make to your main customers
If you understand what the ‘drivers’ are behind the sales figures, it is easier to forecast sales
Reaching the customers
Once you have worked out which customers to target, you need to decide which sales channelswill be most effective. You can either sell direct or through an intermediary. Weigh the costs of each channel against the benefits it would bring:
Most businesses sell to customers direct. Direct sales methods include selling face-to-face, direct mail, telesales and e-commerce
If you cannot reach your customers directly, use an intermediary
You may be able to join forces with other businesses to boost your sales effort
Promote and support your sales channels by communicating with your customers
Measuring marketing success
Track your progress for every monthly (or quarterly) period, for each salesperson and each product area. Check you are achieving your objectives and
reaching the targets you have set:
Use a standard sales enquiry form to record how people heard of you
Calculate the conversion rates for each type of marketing
Monitor how many customers you have acquired, and how many you have lost
Monitor average value of a transaction, and how many transactions were completed in the period
Your target customers
Business growth depends on creating new, profitable business with different customer types:
Generate business with new prospects
Build up a mix of customers, to help safeguard your sales revenue. Do not rely too much on one customer, especially if that customer is vulnerable to cashflow problems
Technology on your side
The right technology can significantly improve your selling efficiency:
If you have many high-value customers and nmprospects, customer relationship management (CRM) software can be an invaluable tool
Use technology to improve selling activities, such as providing sales reps with remote access to your intranet
Effective marketing is crucial to the success of any business.
But simply understanding your market is not enough. You need to build on your marketing plans, turning theory into profits.
A good sales strategy will help you identify and take advantage of opportunities.
Base your sales strategy on your business and marketing plans
Understand your market through research
Identify the key drivers of your business
Concentrate on generating profitable business
Sales planning
Prepare your sales forecast. This is a detailed breakdown of the sales you plan to achieve by month, by customer and by product
Plan sales costs in proportion to the returns you nexpect to make
Prepare your annual sales budget. This is a summary of the sales forecast. It acts as a benchmark for comparison
Revise your sales forecasts quarterly or annually, nusing past performance as a guide
Be aware of sales cycles. The total amount of time it may take to complete a sale can have a critical impact on your cashflow
Co-ordinate sales with other business activities
- do not plan for sales that production cannot fulfil Selling resources
Use sales tools from databases to IT equipment to increase efficiency
Give sales personnel any standard documents they need, such as call sheets, report forms, etc.
Organise and support your sales team
