There is no better approach to dealing with tough times than maintaining a robust pipeline. For most sales persons, the anxiety of managing a budget is more difficult than just putting in the extra effort to maintain this pipeline. And after all that is what we are good at. “Take care of the top line and for the most part, the bottom line will take care of itself."
However, right now, understanding and controlling your budget and cash flow is more important than ever. In fact, proper management of your finances can mean the difference between success and failure. But it's not an easy thing to create an operating budget for a salesperson whose revenues fluctuate month to month.
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We suggest that you:
1) First manage your expenses
a) Determine your variable costs
b) Establish your fixed expenses
c) Project your break-even revenues required to cover these costs
2) Forecast revenue
a) Review past revenue trends
b) Create forecasts based on what will change
c) Best case worst case scenarios
3) Use your financial planning tools regularly
a) Build a budget and use it with other tools
b) P&L, Balance Sheet and Cash flow
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So even if you have done everything you possibly can to build and maintain that pipeline, having a CPA or other financial advisor help you prepare a realistic and effective operating budget in light of fluctuating revenues is a great idea.
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Please visit us at www.bb2e.com and www.nextiersales.com for all your marketing and sales resources.
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