To produce a sales budget, you need to have an understanding of the existing and trending market. It is no longer acceptable to simply add 10% on last year's sales revenue.
Review last year's growth and failings but also remember to review and update the cyclical calendar. Annual and biannual events should be broken down and include, Parliamentary sitting weeks (state and federal), school holidays, public holidays, Easter and Christmas Day etc. These all contribute to the success of meeting budget. Historically, with the arrival of Easter the meetings and events industry halters. However, in recent times, May, July and August have shown significant growth in the conferencing and meetings market. If you haven’t noticed this trend, you need to reevaluate your sales strategies.
A sales budget is the foundation that sets the goal for the year. Management rely on the team to meet budget not only for financial reasons, but growth, development, expansion and further business opportunities. Tracking your budget will allow you to make informed decisions; protect your business in projected loss periods and assist you to maximise profits and spend smartly in periods of growth.
“Planning is bringing the future into the present so that you can do something about it now” Alan Lakein
As a business owner, business development manager or a sales manager you should be preparing and reviewing sales budgets year on year. This practice will assist you to maintain growth, develop a sales strategy and protect and prepare from loss or quiet periods. As your business grows you can look at employing more staff, purchasing new equipment or expanding your portfolio. Having a sales budget advises you when to (and when not to) spend.
This type of planning sets the foundation for strong, informed decisions. Look at the sales budgets as the steel frame in which to house your assets, build successfully upon and protect you from bad weather.
Search, translate and utilise the information you have through your own systems that are available for your review.
Apply and foster self-education for you and your staff to be able to reach the goals your business requires while encouraging goal-setting and achieving behaviour.
Always strive for increased growth year on year. Make your budget aggressive, but achievable.
Nicole Bates, Managing Director, shares sales strategies and solutions for your hospitality business.
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