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Increase Sales through the Creation and Implementation of 3 Year Sales Action Plan
| Guest post by: Leanne Hoagland-Smith |
Article Overview: Are your sales lagging? Do you want to increase sales? Have you tried everything imaginable? Then, maybe it is time to return back to the basics of creating a long range sales action plan.
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Free Download - How to Craft an Engaging Message That Highlights What You Do to Increase Sales By Leanne Hoagland-Smith |
Increase Sales through the Creation and Implementation of 3 Year Sales Action Plan
Are your sales lagging? Do you want to increase sales? Have you tried everything imaginable? Then, maybe it is time to return back to the basics of creating a long range sales action plan.
Instead of thinking where you want to be in 6 months, ask yourself where do you want to be in 3 years?
Then using this somewhat W.A.Y. S.M.A.R.T. goal, start working backward from that point in time to the present.
Of course, you will need to know some specific marketing and sales metrics to be able to work back both efficiently and effectively. These metrics would be based on a 5 year history and would include:
1. Annual sales for the last 5 years
2. Net profits before taxes for the last 5 years
3. Average percentage growth for your company for the last 5 years
4. Total active customers for each of the last 5 years
5. Total lost customers for each of the last 5 years
6. Annual marketing costs for each of the last 5 years
7. Average client acquisition cost for each of the last 5 years
8. Average sale transaction for each of the last 5 years
9. Average sale of primary products/service transaction for each of the last 5 years
10. Average sale of secondary products/services transaction for each of the last 5 years
11. Average market share for each of the last 5 years
12. Trends in monthly sales that indicate any consistent peaks in sales during the least 5 years
13. Local, regional, national and international growth for your target market for the last 5 years
Now using these statistics, you can with greater accuracy put together a more detailed sales plan that will yield greater results. For example, your business in the business to business marketplace and specializes in technology. Your annual growth has been under 10%, but the market is growing at 25% or more. You basically offer 2 types of products and services. One is annual service contracts that delivers a respectable profit margin and the other is as needed technology solutions including service and hardware. The second offering varies as to profitability.
Next you determine that in 3 years you want to be at $750,000. Given that you are currently at $408,000, this appears to be a big hairy audacious goal. However, now that you realized during the least 5 years, you have left a lot of low hanging fruit on the branches, you believe that you can achieve this sales goal. Small Business Sales Coaching Tip: Planning based upon solid numbers allows you to reach further and grow faster than historically experienced.
In using the 25% growth rate, you realize that the first year, you need total sales of $475,000 and by the second year, $600,000 to secure the third year goal of $750,000. Now all of a sudden the $750,000 does not seem so far fetched. After all, if you have been doing 10% annually, the difference now is just $27,000. You know that an annual contract is $15,000 and this means that you only need to secure two new contract clients beyond your normal growth. Additionally, the collected data shows that most of your contract clients come to you in May, June, November or December. Now you can adjust your marketing efforts to ensure that you secure these two contract clients.
A well crafted sales action plant that is aligned to your overall strategic business action plan can increase sales provided you know your numbers. Now, not tomorrow, is the time to take action and invest in the creation of such a sales action plan. Believe it or not, it will return your investment of time and other resources many times over.
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About the Author: Leanne Hoagland-Smith RSS for Leanne's articles - Visit Leanne's website Her book, Be the Red Jacket is a no-nonsense and quick read to help discover potential gaps that may be keeping you from your goal to increase sales. The forward is by Evan Carmichael of EvanCarmichael.com Remember if you think you cannot or you think you can either way you are right. (Henry Ford). Sales Coaching Tip: Change your thoughts; improve your results. Click here to visit Leanne's website   Leadership Assessment Leadership Audit For Business Business Building Check List |
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