What are the best practices and pitfalls to avoid when creating a sales budget and allocating resources?

5 Questions to ask What Are the Sales Goals and Objectives? Which Sales Channels and Strategies Will Be Utilized? How Can We Account for Uncertainty and Volatility? What Are the Key Cost Factors and How Can We Optimize Them? How Will Performance Be Monitored and Adjusted?

Too frequently companies make the sales budgeting process too complicated. These days unless absolutely necessary to be in person the sales team should be using Zoom, email, text, and social media to reach and interact with their prospects and clients. After paying the sales team's salaries and commissions, there should little extra sales related expenses. Create an environment where Profits > Sales Team expenses. Keep it simple and it will be obvious how and when to expand the sales department.

In addition to having a clear vision of the sales goals and objectives, it is important to make a comparison TY versus LY performance approach. Evaluate want worked and what didn't work. This would allow you to see opportunities to double down on or find areas to scale back or eliminate. If there is a big new idea or new initiative that you want to go after you can see what area resources can be pulled from. Also getting other key players and contributors involved to see what value and insight they can add is a plus.

Critical thinking is imperative... what is the overall strengths and weaknesses within the various departments. Who has ownership of skills that need to be focused on and do they contribute and buy in to the process. What are significant benchmarks and milestones ... how are they tracked, and how often will they reviewed and adjusted based on what is learned in the field.. Who needs to be considered for input and insight.

Setting clear goals is the cornerstone of a successful sales strategy. As a sales specialist, I'd emphasize the importance of aligning these goals with your company's broader vision and mission. This alignment not only helps in carving out a realistic budget but also fosters a cohesive approach toward achieving business objectives. Additionally, implementing measurable metrics will facilitate continuous monitoring and adjustment of the strategy, ensuring it remains on the path to success. Prioritizing and distinguishing between short-term and long-term goals can be a pivotal aspect in this planning stage, allowing for a balanced approach to resource allocation and growth planning.

Developing your campaign be sure not to find yourself undercapitalized and cannot give your campaign enough time to gain attention and succeed.

People buy in when they are a part of the process so having the relevant team members participate is key to ensuring success. I also think that the actual sales team can add value. They can either provide other key insightful ideas for allocation or can ensure that the money is even being allocated appropriately. More times than not, the sales people can provide a realistic view of whether the money should be invested in one area or the other.

Collect and save data throughout the year. Historical data is crucial. BE REALISTIC! Don't overshoot just to please upper management. They won't be pleased when you don't make budget. Determine everything you need to make the sales and include that in expenses. Create your sales/marketing plan, stick to it and allow it to evolve during the year. Involve your team for total buy-in & allow them to create their own sales/mkt plan to incorporate into the team plan.