Engaging sales people in the 2016 financial forecast

Some sales people think they are mavericks (an unorthodox or independent minded person), some actually are mavericks.

What’s generally a rule is that they’re difficult to pin down when it comes to forecasting the sales for your Company in 2016.

Their view is by submitting a believable forecast to the FD they are creating a stick to be beaten with.

But it’s not. It’s about having confidence in your ability as a sales person and confidence in the market you are trading with.

Sales people love to have a few hot leads hidden under their hat and so when the sales order arrives they are surrounded by love and kisses. “Where did that come from Steve, your such a good salesman”

“We were having such a quiet month but Steve’s saved us, again”

But actually this is not good for the business process as a whole. Is the customer credit worthy? is it in stock? what are the re-order times? and how many staff will it require to produce the order? This information is vital for planning your financial year.

If all the hot sales leads previously hidden under a hat were put into a basket then the picture becomes much clearer.

We don’t want the FD to forecast 2016 sales by taking this year plus 5%. Because he will.

Preparing the financial forecast is a good opportunity for senior managers to engage in a serious dialogue about the realistic prospects of the coming financial year. And by agreeing on the outcome of the financial plan, everyone’s on board the bus.

And remember a quality maverick can be the difference between a good and bad financial year.