converting your revenue targets into cash

CONVERTING YOUR REVENUE TARGETS

INTO CASH

Russell Cummings

April 2014

SIMPLE PLANS AND TARGETS Product Fees $K Customer X Customer Y Prospect Q Industry T TOTAL

Product A $35 1 $35

Product B $15 1 1 1 $45

Service X $5 20 $100

Service Y $60 1 1

1 $180

Package Z $100 1 $100

TOTALS 1 4 8 6 $460

Product Price per Box

Supermarket Agent Export Direct TOTAL

Premium $35

15,000 5,000 $700,000

Composite $15 3,000 5,000 $120,000

Export Pack $25 10,000 $250,000

Home Delivered $40

1,500 $60,000

TOTALS 15,000 8,000 15,000 1,500 $1,130,000

Big Gaps:

• 8,000 boxes of composite

• 5,000 boxes for Export

• 500 boxes Home Delivered

PRODUCE BUSINESS

INCOME MATRIX

• Map out the plan

• Work out the gaps in tangible chunks

• Understand the difference between NOW and WHERE

• Work on averages not absolutes

Key elements:

1. Customer/Client Groups

2. Product/Services

3. Av Sales per Unit

4. Units sold

1. Map your Sales Process

2. Build the pipeline at each

stage

3. Use probabilities to add realism

4. Monitor the pipeline and use it to drive activity – marketing and sales

BUILDING A SALES PIPELINE

SALES PROCESS

What are the key steps in your

Sales Pipeline?

EXERCISE: YOUR PIPELINE

Stage Customer Prob % Revenue Prob Rev $ Pipeline $

Order Client X 100% $100,000 $100,000

Client Z 100% $250,000 $250,000 $350,000

Quote Customer A 50% $100,000 $50,000

Customer C 80% $ 60,000 $48,000 $448,000

Negotiation Client X 20% $100,000 $20,000

Customer A 10% $100,000 $10,000

Customer Q 25% $200,000 $50,000 $528,000

Prospects Customer Y 5% $50,000 $ 2,500

Client D 10% $100,000 $10,000 $540,500

TOTAL 51% $1,060,000 $540,500 $1,130,000

EXAMPLE: SALES PIPELINE

CONSISTENT MARKETING PROCESS

Work to targets and sales

pipeline

Build your Sales Skills – SPIN

Selling & Negotiation

Develop a Sales Plan

Rapport, understand issues, provide

solutions, ask for business, negotiate

for objections

Practice, practice, practice

Monitor your Sales performance

EFFECTIVE SALES

SUMMARY

Russell Cummings Business Consultant M: +61 414 929 585

W: www.sbdbusiness.com.au E: russell@sbdbusiness.com.au

Thank You