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Accurately Manage Revenue Budgets

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What revenue number is required to increase sales by 20%?

Organizations begin the annual planning process by looking at prior year sales and determining what the projection will be for next year. The projection is generally an educated estimate that is based on both internal and external factors that drive the business and can have a potentially positive effect on revenues. The planning process tends to involve executive-level personnel who need to agree with the VP of Sales' projections to accurately determine resource allocation to support the plan. Once all departments are within agreement of the sales plan, the VP of Sales needs to transform this into the tactical sales budget. The sales budget becomes the means of accomplishing the plan and is how the plan is actually carried out.

During the sales budget, multiple sales representatives need to be engaged, and the VP of Sales requires a solution to monitor, measure and control the process. Managing the activity of multiple sales representatives can be an unruly task if there is no means to measure results and keep track of status. To manage sales budgets, there needs to be a consistent flow of information over time, which would allow for comparisons and adjustments and involve all required personnel. Everyone then becomes more accountable throughout the process.

Why is it critical to accurately manage the revenue budget?

• Drives the success of the organization
• Operational efficiencies rely on it
• Determines required resources to support sales
• Necessary for consistent growth and identifying opportunities
• Engages employees to reach towards a common goal
• Brings accountability and ownership to employees
• Creates collaboration across the organization

Why PROPHIX for managing the revenue budget?

• Multi-user system with embedded workflow
• Timelines & deadlines incorporated within budget
• Direct linkage to external sales databases
• Contains all supporting detail information
• Centralized location for all business logic
• Completely tailored to specific business model
• Significantly reduces the sales budget cycle
• Results and budget status are easily shared with the organization
• Changes are possible without experiencing data integrity issues

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