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A Predictable Sales Forecast Results From Your Sales Funnel Leads

By Rui Ludovino


A predictable sales forecast is what every company would like to have to help them have a stable business every month. However good sales forecasts are very difficult to achieve if you don't have data to back you up. There's often a remarkable difference between what the sales team says they will do and what they actually will sell.

Having an correct analysis of your business will allow you to run your business smoothly and have best sales volume as possible. Sales funnel management will allow you to calculate your probability of revenue for a certain period of time (days, months and years to come). Some companies do exceptionally well at managing their sales funnels.

Do not confuse a sales forecast with a sales funnel - they are a lot different. Your sales forecast gets the buying cycle of your customer in relation to your business and then predicts your sales. Your sales funnel examines the what are your business potential sales in your income stream. It then calculates the likelihood that there are enough deals moving in the direction of closing to ensure revenue flow for a specified period of time.

A robust sales funnel is a good indicator of your long-term deals health. It's important to keep all the deals in your pipeline current. Be sure you build a system where your data is constantly reviewed. You should be collecting data on * The number of deals in the funnel * The number of deals in each sales stages * Cost of sales * Size of deals * Progression of the deals * Utilization of resources

Next you will need to review your criteria, which could include: * Customer problems * Relationships between you, the sales team and your prospects * Opportunity * Qualifications

Sales funnels come in a variety of shapes and sizes. Each funnel have a number of steps that the prospects need to go through. Some of those opportunities are for a short period but far reaching, while others take place on a log period of time but only a few deals finding their way into the flow. There is no sales funnel that doesn't have at least a few holes. This mean the opportunity makes its way into the sales funnel but doesn't generate a sale. The key is having good opportunities that will make it from start to close.

It's important for you to have lot of deals in each stage so that the next stage remains filled as it filters through. This will ensure you have a steady flow of deals rather than have a lot of sales or not sales at all in a short period of time.




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