In this case we are going to play the role of a field sales manager from the insurance industry. To make this as realistic as possible let’s look at an example of where the sale budget process can be applied.
Forecasting on the other hand is an estimate of how much will be sold over the set period of time. An idea of which direction they want the company to go in and whether or not they are on course to get there.Īlthough the sales forecasting process and budgeting are often used together, there are distinct differences between the two:īudgeting is a quantified expectation of what a company hopes to achieve for any given period of time – a summary of total revenue from all products or services sold. Now if you’re scratching your head thinking this sounds an awful lot like sales forecasting to me – your 100% right to do so – the two are extremely similar.īoth the sales budget process and sales forecast are tools used to by companies to get a glimpse into the future. This is what we aim to teach you throughout this blog post. This is why it’s often the first and most important written document put together by your business and sales management process model.īut as a field sales manager, how do you go about creating a sales budget? Why is it so important to you? And what is the actual sales budget process ? It shows not only how much money you think should be made over a set period of time, but where that money is expected to come from.
That’s because the sales budget process acts as a guide directing you and your sales team over the rest of the month, quarter or year. Are we on track to reach our sales targets for this quarter? What sales objectives should I set my field sales team? How do I analyze the health of our sales funnel? Everyone of these common sales questions facing field managers starts and ends with a sales budget process.