Hereâ€™s how to jump-start your sales budget in three easy steps
43984, 08 Oct. 2014
Tags: sales budget, budgeting, budgets
If you’re launching a new product, updating your existing budget, or starting a new business, you need a sales budget to help you benchmark your goals.
Essentially, a sales budget is a way for your business to predict turnover the business will reach per period.
If you’re in retail or a wholesale business, your sales budget will be the “number of units” multiplied by “the selling price per unit you predict you’ll sell”. Once you know this, you’re able to plan the exact quantities of products to keep your business profitable.
And if you’re in a services based businesses, it will show you the exact number of clients you will need to service to stay profitable. You will be able to plan your year and hire new staff based on these projections.
So how do you get started with your sales budget? Is it all guess-work? Certainly not…
Follow these three steps to jump-start your sales budget
Step #1: Preparation is the starting point of your sales budget. If you’re an existing business, you will have to gather all your inventory and accounting records for the past year. This will help you predict what the future holds.
Step #2: If you’ve just started your business or you’re launching a new product, use industry markers as benchmarks for your budget.
You can research your type of business on the Internet and see what trends or patterns they follow. In addition, talk to business owners in the same line of business, join a networking group in your area or start reading local entrepreneurial publications.
Step #3: If you already have a sales budget, strive to make it more user-friendly and actionable so it achieves its objectives.
Following these steps will help you jump-start your sales budget so you can benchmark your goals and keep your business afloat.
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