Thoughtful Thursdays – Plan to increase sales
It was always a given for me that year to year sales were expected to increase. As the economy tightened and competition became tougher, it became more challenging to meet expectations. It required better planning and execution. Businesses that failed to step up either fell by the wayside or became smaller. We always had a plan to facilitate sales growth, but until a solid planning process was put into place the results, although achieved, were less likely to come from where we thought. When a market is strong there is less of a need to be as vigilant.
If you are forecasting 20% growth over last year, how are you expecting to get there? In a previous post I talked about doing the math to help forecast future sales. Today’s thought is taking it a step further to help determine exactly how to achieve your forecast.
- Review each customer and find out what they expect to be purchasing in the next year. You may find that some do not have a process for forecasting or setting targets. If this is the case, it will be difficult to get commitments. It would raise a flag for me to be more in touch, especially if they are a key account. If your key customers are not forecasting revenues and resulting purchases, it may a good time to review the account.
- Put a sales number to each prospect you are working with, based on ongoing conversations. Factor in the provability of the sale closing within the predicted time frame. Follow up diligently to keep up to date. You want to know right away if the sales cycle is being extended and the customer may not always want to tell you.
- Some business will fall off. Know where this is going to happen and why. Will the business return at some point in time or is it gone forever? If the demand is returning, know when to expect it
- Factor in price increases – good! or decreases… choke!
- Keep good records for each target and know where you stand with each one. Review on a monthly basis to stay on track. If one falls behind, you want to be able to replace it.
- Finally, do you have a sufficient number of projects in the works to support the expected growth. If not, review marketing activities with the goal of increasing prospect generation.
One very good benefit you will realize is a stronger relationship with your customers and prospects.
There will be occasions when things do not work out as planned, that is life. Be sure you are not leaving any stone unturned and remember to ask: Why? Your business is depending on it.
Good selling,
Richard
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