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Have you set your sales budget for the year yet?

If not, you are not alone. Research shows that more than 54 % of organisations deliver budgets to the sales force after the FY has started.  Even then, a whopping 42 % change the budgets after they are released. If you are still working thorough budget setting, you may be somewhere between the 5 -10 iterations most companies go through before agreeing on figures. Research by Gartner identified that 5 – 10 % of potential revenue is lost through poor budget setting. That is significant!!  So it is worth persevering.

 If you are still working on your budget setting, remember is about process and engaging people. A combination of the following factors can be helpful;

  1. Historic Sales as an indicator but not a predictor of future revenue ( so don’t just add on 15 % and hope)
  2. Projected growth based on good market and product research
  3. Account planning : working up from an account level to understand their strategy and  the potential for your products and services

 

We all know that budgets have a major impact on sales person performance and motivation. So taking time to get an agreed achievable budget is well worth it. Having a well thought our budget is essential for you to build your incentive scheme.

 Don’t be afraid to adjust budgets as the year progresses, more than 70 % of companies do. Just do it for the right reasons in the right way to keep engagement and motivation.

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