Sales Projections Precede Sales Revenues: how does 2010 look for you? Up? Down? Level?
November 30, 2009 by Mary Ellen
One successful coach said, “I can’t project. I never have.” “I just coach my regulars and conduct one major workshop quarterly.”
Even service providers can make viable sales projections. Here’s how:
- To do your annual projections, set up a spreadsheet.
- Track your business sales month by month for the previous 12 months.
- Then, pull your numbers for the past two years. Determine your business trend (up, down, or level).
Now that you’ve completed a historical perspective, project (according to your trend) for the next 12 months. If you have difficulties, ask questions like these:
- Am I continuing to get more clients?
- Is my business expanding or contracting at this time?
- Where are the spikes (sharp increases or decreases) in my business?
- What precipitated those changes?
- If the changes are good, how can I repeat the result?
- If there are dips, how can I avoid them?
- Tip: project clients by name and by average term of contract
The coach with whom I spoke also had a variety of products, including e-books, e-courses and workshops. She had never done a projection for her products. Once again, I began with questions:
- What is the sales cycle for each of your products?
- Can you forward-project that cycle for the coming year?
- Do you have new products to add?
- How do you expect them to sell? Are you doing something to introduce them or give those new products additional exposure?
- What is your backup plan in the event your new products are not well received?
- Is there something that you plan to do to change the outcome of your plan? (Remember, the definition of crazy is doing the same thing you’ve always done and expecting different results. Nowhere is that more true than in projections.)
- Now that you’ve answered these questions, go back to your spreadsheet. Project your sales by client.
- Add a single line for each product. For example, add a line for workshops and then for sales at the back of the room in each workshop; add a line for speaking engagements and so on.
- Do a best and worst-case scenario.
There’s definitely no guarantee. As consumers get more cautious with their money, service providers must continue to show additional value. Now is the time to shore up your value statement. Take the time to listen to customers, respond carefully and plan for the future.
A final thought: do your sales projections. Do it now to prepare for 2010.
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