converting your revenue targets into cash
TRANSCRIPT
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: [email protected]
Thank You