Sales Revenue & Marketing Projection Models

It is nearly impossible to predict annual revenues precisely, particularly for new products or businesses, but it is critically important for companies to create high-quality revenue budgets. To maximize the odds of being in the right ballpark relative to actual results, sticking to fundamentals is the key.

Sales Forecasting:

The sales revenue forecasting templates will use multiple forecasting methods. On a high level, many companies develop sales forecasts by applying an expected or desired market growth rate to current year revenues. These forecasts are then substantiated using a bottom-up forecasting approach that takes into account inputs such as projected product units sold, price, sales productivity and seasonality, to name a few.

A more rigorous approach, relies more heavily on analysis of sales channel productivity and customer purchasing behavior. From an execution standpoint, the effectiveness of sales channels and the purchasing behavior of customers are the two most important drivers of revenue growth. Sales managers must understand how much typical inside or outside sales reps can be expected to accomplish, and what they will actually spend time doing, to develop realistic revenue targets. Even the best sales reps have limits to what they can accomplish over a given time period, and all sales reps spend some percentage of their time on non-selling activities. It is even more important to understand how customers make purchase decisions and to determine the amount of time and effort needed to convert prospects to buyers based on the customer decision-making process.

Marketing and Advertising Expenditure Budgets:

There are many marketing and advertising activites that necessitate the need for rigorous marketing budget templates. Developing a solid marketing budget is an important part of creating a plan of action that is realistic and will help improve revenues. Without a solid budget, you can accidentally overspend on marketing costs. After you know the total amount available to spend on marketing, the next part of creating a solid marketing budget plan is organizing how you intend to spend that money. Three main factors contribute to how you spend marketing funds: the budget size, your past experiences, where you can reach the right audience.

Sales & Marketing Projection Models