Planning a sales budget
Posted: Sun Dec 22, 2024 5:57 am
Setting a strategic goal . For any company, it consists of obtaining the maximum possible profit. The most effective modern goal setting tool is SMART technology, which allows you to plan a truly real, feasible sales budget.
Decomposition of a strategic goal is dividing it into parts and calculating its implementation in stages. These parts in turn are decomposed into even more local ones - until the task of philippine country code a specific performer (employee) is determined. Thus, the budget document determines the responsibility of each participant in the business process.
Obtaining non-financial indicators . These are nothing more than instructions for employees based on performance indicators in numbers. Their role is to improve the productivity of staff. Having analyzed the number of calls made by the manager, personal conversations with customers and sales volume, you can include these recommendations in the financial plan.
Transformation into budget items . All types of work at the enterprise have their own rates and standards for performance. By multiplying the volume of each employee's activity (non-financial indicators) by these rates, we obtain figures that are included in the sales budget plan.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
The result of this large-scale and multi-stage work is a clear action plan for each link. For the company's management, the document is a functional tool that allows them to control the process of achieving strategic goals at any moment. The manager has at his disposal:
traditional budgets;
non-financial plans package;
a set of essential and easy-to-understand numbers and indicators.
The implementation plan for the coming year is calculated by studying the indicators of the past period and adjusting them in accordance with the strategic goals. The existing funnel is also used, which further clarifies and specifies the feasible sales budget. Decomposition occurs in an "inverted" form.
Planning a sales budget
Source: shutterstock.com
What is the practical result, the outcome of such strategic planning? Of course, it is the exact profit figure, the amount of revenue. Since it is not taken out of thin air, but is based on a comprehensive analysis and precise calculation of specific indicators, it can be considered convincing and achievable. The condition for budget implementation is the implementation of all its items, this is what the enterprise should strive for.
It is necessary to know the exact indicators for the following points:
average check amount;
revenue volume;
conversions in the funnel;
number of applications.
The amount of profit is affected by the factors that we will discuss below. They also need to be taken into account when planning the sales budget:
Decomposition of a strategic goal is dividing it into parts and calculating its implementation in stages. These parts in turn are decomposed into even more local ones - until the task of philippine country code a specific performer (employee) is determined. Thus, the budget document determines the responsibility of each participant in the business process.
Obtaining non-financial indicators . These are nothing more than instructions for employees based on performance indicators in numbers. Their role is to improve the productivity of staff. Having analyzed the number of calls made by the manager, personal conversations with customers and sales volume, you can include these recommendations in the financial plan.
Transformation into budget items . All types of work at the enterprise have their own rates and standards for performance. By multiplying the volume of each employee's activity (non-financial indicators) by these rates, we obtain figures that are included in the sales budget plan.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
The result of this large-scale and multi-stage work is a clear action plan for each link. For the company's management, the document is a functional tool that allows them to control the process of achieving strategic goals at any moment. The manager has at his disposal:
traditional budgets;
non-financial plans package;
a set of essential and easy-to-understand numbers and indicators.
The implementation plan for the coming year is calculated by studying the indicators of the past period and adjusting them in accordance with the strategic goals. The existing funnel is also used, which further clarifies and specifies the feasible sales budget. Decomposition occurs in an "inverted" form.
Planning a sales budget
Source: shutterstock.com
What is the practical result, the outcome of such strategic planning? Of course, it is the exact profit figure, the amount of revenue. Since it is not taken out of thin air, but is based on a comprehensive analysis and precise calculation of specific indicators, it can be considered convincing and achievable. The condition for budget implementation is the implementation of all its items, this is what the enterprise should strive for.
It is necessary to know the exact indicators for the following points:
average check amount;
revenue volume;
conversions in the funnel;
number of applications.
The amount of profit is affected by the factors that we will discuss below. They also need to be taken into account when planning the sales budget: