master hogan copy 2012 update effective sales management planning forecasting budgeting

23
07/02/2022 Copyright 2012 All rights reserved Dr. John J. Hogan 1 Effective Sales Management: Short and Long-term Planning, Forecasting, and Expense Budgeting Why are we here today?

Upload: johnhogan

Post on 29-Nov-2014

511 views

Category:

Documents


1 download

DESCRIPTION

Online Webinar titledEffective Sales Management: Planning, Forecasting, and Budgeting

TRANSCRIPT

Page 1: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

1

Effective Sales Management:

Short and Long-term Planning, Forecasting,

and Expense Budgeting

Why are we here today?

Page 2: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

2

John J. Hogan, Ph.D., CHE, CHA, MHS

A career hotelier and educator, with 35 years experience

Industry certified; past recipient of the American Hotel & Lodging Association’s Pearson Award for Excellence in Lodging Journalism, as well as operational and marketing awards from international brands

Author of weekly columns for a number of global online services - published more than 400 articles and columns Co-authored LESSONS FROM THE FIELD – a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES

Page 3: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

3

John J. Hogan, Ph.D., CHE, CHA,

MHS Clients are associations, international brands, management groups, convention bureaus, academic institutions Taught college level courses at three different universities over a 20-year period, while managing with Sheraton, Hilton, Omni and independents

Created/developed a blended learning system as Director of Education & Cultural Diversity for world’s largest hotel chain Has conducted an estimated 3,200 workshops and classes in career

Expertise and Research Interest includes: 1. sales management and training2. turn-around and revenue management3. professional development4. customer service5. leadership and executive education

Page 4: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

4

Agenda

1. Mapping out Your Sales Plan2. Preparing and Revising Your Sales

Forecast3. Aligning Your Expense Budget With

Your Forecast and Sales Plan4. Practical Approaches to Opportunities

in the Market

Page 5: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

5

Mapping out Your Sales Plan

Acquire & use good selling knowledge

• Finding out who your customers are• where they are coming from• how they came to select your

business/product• why they use your business/product• how often will they need you and how

much they spend

Page 6: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

6

Mapping out Your Sales Plan

Plan A Good Market MixIt is extremely hard to be all things to all people all the time, which means knowing your proper customer base.

While one does not want to turn away potential, understanding the mix of business reflects how much of what type of business you're doing.

Page 7: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

7

Mapping out Your Sales PlanTry New Things

• FACT: most successful entrepreneurs would not be where they are today if they didn't take a chance and try new things.

• Come up with new ideas to promote business and don't be afraid to put them into action.

• Examples -

Page 8: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

8

Preparing & Revising Your Sales Forecast

Know Your Competition – specifically your direct competitors.

A thorough knowledge of the competition can help you

size up your strengths/weaknesses and determine where you can compete the best:

is it location, price, size, product, service or amenities?

The idea, of course, is to sell your positives and to expand your market share profitably.

Page 9: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

9

Preparing & Revising Your Sales Forecast

Research & qualify your multiple price policy

Understanding/measuring selective discounting.Do you know which special rates are generating business for you?Periodic reviews of all rates help establish the multiple-rate policy that's right for you. 3rd party sites – evaluate if they help your profitability and/or cash flow.

Page 10: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

10

Preparing & Revising Your Sales Forecast

Sell Aggressively! • Aggressive and assertive are not synonyms.

• One means hard hitting and the other confident – in challenging economic times, those professionals in sales must have some of both attributes to book the business.

• One can be aggressive while still being friendly, credible and sincere.

• Being tenacious, following up and ensuring customer confidence all add up to success.

Page 11: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

11

Aligning Your Expense Budget With Your Forecast and Sales Plan

Re-examine all operating budgets• Annual budgets usually prepared 6 months

before the beginning of any year in advance, which often means projections could be as far out as 15-18 months.

• While most of us projected potential trouble in 2009, few of us anticipated the international financial meltdown that unraveled in late summer/fall 2008.

• It is time to re-evaluate all operating budgets immediately and determine planning for action steps that need to be taken NOW.

Page 12: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

12

Aligning Your Expense Budget With Your Forecast and Sales

PlanInitiate aggressive, but realistic goals

for achieving specific expense savings

• Link to changes in the operating budgets you have just re-forecasted.

• There will be revenue lines projected at lower levels and the expenses associated with them should be identified.

• Zero-based budgeting – positives and negatives

Page 13: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

13

Aligning Your Expense Budget With Your Forecast and Sales PlanCompetitively re-bid all significant vendor

and supplier contracts• It is not being suggested to break contracts, but

every company in every industry is feeling strained resources these days.

• Discussions on terms, pricing, quantities, payment schedules and other factors are all items that should be analyzed short term and ongoing.

• A wide range of services and products, including utility purchasing options that might offer incentives or access through energy cooperatives.

Page 14: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

14

Practical Approaches to Opportunities in the Market

Evaluate carefully product/guest amenities

• Straight forward decision if you are independent

• If part of a brand, there are agreed upon standards that perhaps may be delivered in alternate ways.

• Chain management may be open to options if the guest experience is not diminished.

• Consider approaches that are green in nature and a service that is optional rather than wasted or unused products that requires staff services

Page 15: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

15

Practical Approaches to Opportunities in the

Market Examine every part of your credit policy

• Credit is an essential part of the business cycle• The current global financial crisis is at least

partially mired due to credit snafus. • Are you in fact are lending the use of money when

extending credit?• What is your proper balance when considering the

use of credit as a potential feature? • Care must be used when considering credit – even

large companies have been known to renege on credit yet it can be an important point of difference.

Page 16: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

16

Practical Approaches to Opportunities in the Market

Plan and monitor Monthly cash flow (forecasted and actual)

• Too many entrepreneurs new to an industry disregard the difference between cash flow and profits

• Even some veterans do not fully appreciate the value of monitoring cash flow.

• While any business needs both to survive, cash flow is the more indispensable of the two.

• Cash flow basically refers to the flow of cash into and out of a business over a period of time - what is needed to keep the doors open while trying to make a profit.

• Without adequate cash, one cannot pay suppliers, taxes, meet payroll, market itself or operate professionally. If an adequate cash flow is not maintained, there is the very real danger of bankruptcy or going out of business.

Page 17: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

17

Practical Approaches to Opportunities in the Market

• Planning & monitoring inflows/outflows of cash = top priority

• Planning ahead for seasonal fluctuations and unexpected emergencies allows for dealing with challenges and at least partially reduces stress.

• Knowing where you are in cash positioning allows you to also maintain more open and constructive relationships with suppliers, banks, staff and business partners.

• By monitoring cash, you can better anticipate potential problem spots & conceivably lessen or avoid a liquidity crisis.

• In this type of economy, the potential for shortfall in business levels is real, which means cash flow will likely be diminished.

• Being able to deal with this underperformance in advance will definitely help bridge the challenge.

Page 18: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

18

Maximizing Involvement and Results

RecapMapping out Your Sales Plan

Acquiring and Using Good Selling Knowledge Planning a Good Market Mix Trying New Things

Page 19: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

19

Maximizing Involvement and Results

RecapPreparing and Revising Your Sales

Forecast

Knowing Your Competition and Specifically Your Direct Competitors Researching and Qualifying Your Multiple Price Policy Selling Aggressively

Page 20: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

20

Maximizing Involvement and Results Recap

Aligning Your Expense Budget With Your Forecast and Sales Plan

Re-Examining All Operating Budgets Initiating Aggressive, but Realistic Goals for Achieving Specific Expense Savings Competitively Re-Bidding All Significant Vendor and Supplier Contracts

Page 21: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

21

Maximizing Involvement and Results

RecapPractical Approaches to Opportunities in

the MarketCarefully Evaluating All Amenities and Packages in Your Offerings Examining Every Part of Your Credit Policy and Practice Planning and Monitoring Monthly Cash Flow (Forecasted and Actual)

Page 22: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

Contact InformationMembership and Learning Resources

www.HospitalityEducators.com [email protected]

Speaking Engagements, Hospitality Consulting, Training, Expert Witness, Litigation Support www.HoganHospitality.com

[email protected]

Sites Under Construction for Online Learningwww.HotelTrainingToYou.com;

www.HospitalityTrainingToYou.com

602-799-5375 Direct Line

Dr. John Hogan, CHA CHE CMHSCopyright 2012 Dr. John Hogan, CHA CHE CMHS All Rights Reserved

Page 23: Master Hogan Copy   2012 Update    Effective Sales Management Planning Forecasting Budgeting

04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan

23

Questions/Comments?

THANK YOU!

John J. Hogan, Ph.D., CHE, CHA, MHS

[email protected]

602-799-5375