FORECASTING

Are we getting our facts straight?

Using the Sales Funnel To Estimate Sales Revenue

First, estimate the likely hood of closing business based upon your qualification process.

List the procedure you normally go through to win business, and the related % chance of winning business once you've completed that phase. Here is an example procedure list:

Position In Sales Process % Chance of Closing
New Lead 10%
Found Coach 20%
Identified Requirement 20%
Met User and Specifyer Buyers25%
Understand Personal Wins25%
Identified Competition and USPs25%
Presented Features, Advantages, Benefits30%
Sent Proposal50%
Met Final Decision Maker 60%
Agreed to Purchase 80%
Producing Order 90%
Closed 100%

Once this has been established, you can use these percentages to forecast revenue buy prospective account to get a weighted revenue figure such as the following:

Prospect Value %Chance Weighted Value
Company A $100,00 80% $80,000
Company B $50,000 70% $35,000
Company C $60,000 60% $36,000
Company D $75,000 90%  
Company E $25,000 100% $25,000
TOTAL WEIGHTED REVENUE $243,500

Utilising this method of forecasting will give you an accurate indication of how much you will sell and by when. Additionally, it helps you to focus on your personal sales process, and how you can move prospects onto the next level to close.