Preliminary sales budget analysis

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The following list shows the factors that need to be forecasted to accurately calculate a business's sales budget:

The amount of discounts that a company can withstand without harming itself. The buyer always reacts positively to this, significantly increasing sales figures. But the manufacturer must clearly understand where the discounting boundaries are, otherwise it will negatively affect profits.

Inflation rate . This is a global economic reality that must be taken into account when preparing a sales budget. In other words, price increases must be included in the financial plan in advance.

Payment deferrals . Reduce the croatia email list company's financial performance. The deferral is granted to the buyer in whom they are interested. But no matter how much you want to keep the client, you need to remember that every such day means a loss. About 1.2% of the uncollected amount is eaten up by inflation, another 0.8% is money that could work for your business. In total, over the course of a month, the uncollected amount melts away by about 2%.

Force majeure . These are circumstances that cannot be predicted. Natural and other cataclysms, sanctions, license revocation, state restrictions – such cases cannot be predicted and reflected in figures when drawing up a sales budget. Only a highly qualified specialist can calculate the hypothetical damage in the event of a particular force majeure.

Know-how. There is a widely known case of a significant increase in Heineken beer sales due to a strike at a St. Petersburg brewery. Regular customers were eager to stock up on their favorite drink. As we can see, financiers who make up the company's sales budget should think about non-standard factors that affect these indicators. In particular, a strike at a prestigious enterprise provoked an increase in sales, and stock market players were able to play for a fall and buy shares of a popular brand cheaper than the face value.

Preliminary sales budget analysis
So, we have become familiar with all the factors and circumstances that influence the calculation of sales plans. It is time to talk in detail about the process of planning the company's sales budget.

To put all the factors together and get a picture expressed in simple numbers requires experience and high qualifications. For some companies, drawing up this document is too complicated a task. It is much easier to plan expenses. However, income must be calculated, otherwise how can you understand how profitable the enterprise is? They must at least compensate for all expense items.

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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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It is a big mistake not to take inflation into account, because the natural motivation for business is the confidence that, having covered expenses, the enterprise will make a profit. The volume of expenses is the indicator on which the viability of the company directly depends.

Another important point in planning the sales budget, along with the revenue volume, is the timing and frequency of cash receipts. Deferred payments and debts are taken into account here. A convenient form of control over funds is a receipt schedule.