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How to Plan Your Sales Budget

How to Plan Your Sales Budget

A sales budget helps you focus on things you can change Planning a business by first setting a sales budget is the best way to help it grow. The whole process of thinking through the different elements of your business will help you focus on things you can change for the better

You can find out the problem areas in advance

When setting a sales budget you need to analyse your sales income. By planning your income at least 6 months ahead you will get a clear picture of months when it won’t be as high as you might like. You will at least know in advance that there is likely to be a problem and can plan now how to get round it.

Existing Customers

Focus on your existing customers and work out how much income to expect in each of the next six months from each customer. Set it up in a spreadsheet so you can have everything automatically totalled. Go into detail so you know where each figure came from.

Quotes with a chance of becoming Orders

Now look at the quotes you’ve sent out and think about which ones you think are likely to turn into orders. Enter the monthly income from each of those under the monthly figures you’ve just entered.

Pipeline Business and other business you will win from marketing

Estimate realistically how much business you can win from all the areas of your sales activity that you haven’t yet quoted for, and spread that over the next six months, underneath the other data. Realistic means if you have enough irons in the fire, you should get regular sales. If you aren’t carrying out enough marketing activity you won’t get those sales.

Monthly Budgeted Sales

Look at the total of each monthly column and think about whether this is a pipedream or maybe too conservative a figure. Just looking at the way each month’s sales figure is made up should help you think about whether your sales activity is strong enough. If it isn’t you may need specialist marketing advice, or maybe it’s just a matter of putting in more marketing effort.

If you need some training to get your sales budget set up, or tax help and advice, call Frances on 01737 559211. We specialise in small business tax and accountancy.