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Business Owner’s Toolkit #2 Sales Plan If you mapped out these simple steps of Sales Plan you’ll be well way to success. On the following page are notes to help you fill each section in with your own wording.


Business Owner’s Toolkit #2@2013

#1 Opening Stage

Sales Plan

RFQ-Request for Quotation QUO-Quotation PO-Purchase Order SO-Sales Order DO-Delivery Order INV-Invoice

#2 Influencing Stage

#3 Closing Stage

#4 After Sales

#5 Repeat Selling The 5 P's

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Business Owner’s Toolkit #2@2013

Create a Sales Plan A sales plan is a strategy that sets out sales targets and tactics for your business, and identifies the steps you will take to meet your targets. A sales plan will help you: Define a set of sales targets for your business Choose sales strategies that are suited to your target market Identify sales tactics for your sales team Activate, motivate and focus your sales team Budget and clarify steps you'll take to achieve your targets Review your goals periodically and improve your approaches to sales A sales plan sits within, or alongside, a marketing plan to direct the efforts of your sales team. Most businesses develop or update sales plans periodically - every 6 or 12 months. Treat your sales plan as a 'living' document that you can revise regularly. This guide explains the importance of having a sales plan, and will help you develop, implement and review your business's sales plan.

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Business Owner’s Toolkit #2@2013

Using Market Research to Increase Sales Understanding your market is your first step to developing a good sales plan. To understand your market you will need to carry out market research. Market Research An effective sales plan relies heavily on market research. Summarize your business's target market segments. Describe: Your target market segments The types of people in that market The numbers in each market segment Segment classifications according to previous sales volume or potential sales volume Based on your market research, explain: Why there is a demand for what you're selling Your current market position - including any strengths, weaknesses, opportunities or threats Your competitors' strengths, weakness, opportunities and threats Your sales plan might also include market research about emerging or forecasted trends in your chosen market. Using your Marketing Plan Marketing is positioning your business's reputation in a way that ideally matches your chosen market's needs and wants. Your marketing plan will help you: Define and build your chosen business reputation Increase your customers' awareness of your ability to meet their needs Communicate with your customers in the way that increases your customers' opinion of and reliance on your business. Your marketing plan will influence your approach to sales from strategy to point of sale.

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Business Owner’s Toolkit #2@2013

Market Assumptions Make a list of assumptions to describe the facts or beliefs that influence your sales plan, such as the: number of customers you expect to retain capabilities of your competitors amount of competition you have resources required to continue your operations costs of materials and labour Your periodical sales plan reviews will allow you to consider whether your assumptions remain relevant over time. If you find your assumptions have changed, it might also be time to make changes to your sales plan.

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Business Owner’s Toolkit #2@2013

Sales Forecasts and Targets Using your sales history and market research, you can forecast the number and value of sales you expect to make. You can then set targets for the sales you would like to make and figure out ways to achieve your target. Sales History Record your business's yearly sales performance by product sales. This allows you to determine your performance and make improvements to your sales strategies over time. You may choose to keep more regular records - for instance, weekly, monthly or quarterly. If you are starting a new business, market research will help you find useful records about sales performance in businesses similar to yours. Sales Forecasts Use your sales history or market research to forecast month-by-month predictions of the sales you expect to achieve. List them by product or product line and market segment. It is important to make realistic forecasts. Include: How many new customers you gain each year How many customers you lose each year What your average volume of sales is to each customer Particular months where you win or lose more customers than usual How many products you sell per year or per month How many sales you make to each market segment per year or per month How many sales per month you expect to achieve by product or product line How many sales per month you expect to achieve by market segment Sales Targets Your sales targets indicate the sales you need to make in a given period to break even and make a profit. Identify the sales targets you wish to achieve in the year ahead, by quarter and month, listing in order of product and product line.

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Business Owner’s Toolkit #2@2013

Sales Strategies and Planning After identifying your sales targets, you can work out strategies, tactics and actions to achieve them. Sales Strategies Identify overarching strategies for increasing sales in your business. For example, you could: break into a new market segment by adapting an existing product for the market boost the average sale per customer by 10% using add-on sales When developing your sales strategies, think about: your market segment your customers' motivations and expectations your capacity to meet your customers' expectations Sales Tactics Once you've developed your sales strategies, think about tactics to implement your strategies. For example, you could: find customers in a new market segment train sales staff in offering add-on sales Using your Marketing Plan Your marketing plan considers the market your customers are in, and defines how you communicate to that market. Its strategies set out: The messages you will communicate Your products or services Your marketing objectives, tools and tactics

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Business Owner’s Toolkit #2@2013

Your sales plan identifies how you will approach and sell to your customers. Your sales plan strategies set out: Your approach to attracting new customers Your plan to increase existing customer sales Your plan for achieving new targets and increasing your profit margin Sales Action Plan The actions section of your sales plan will identify and list: The steps you will take to implement your sales tactics The sales team members responsible for implementing your tactics, by location When each action will start and finish How much each action will cost Check that your action plan supports all your strategies and tactics. Budget Allocation Allocate a budget for actions within your plan. Record the total cost of your actions. Be sure that you have the funds to implement your sales plan. If you don't, refine your tactics. Conduct a cost-benefit analysis. Make sure the quantifiable benefits you expect to receive from your actions are greater than the costs they will incur.

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Business Owner’s Toolkit #2@2013

Communicate and Monitor your Plan Once you've developed a sales plan, it's important to communicate it effectively to your staff, customers and suppliers so they can help you achieve your sales goals. Your sales plan also needs to identify steps you will take to assess its effectiveness. Remember, your sales plan is a living document and needs to be regularly monitored and updated. Communicating your Sales Plan Your Sales Team The success of your sales plan rests on your sales team. Your sales team can't achieve your sales plan targets unless they thoroughly understand the plan. Your sales plan should describe how you will communicate the plan to your staff and how you will train them to implement your plan's actions. Think about what your team needs to know. This includes: The sales targets, strategies and tactics in your sales plan How to determine what motivates their customers to buy How you will measure their results How they will be rewarded Your Customers and Suppliers It's also important to think about any impacts your tactics will have on your customers or suppliers. Ask yourself: Will your customers' orders or buying patterns be affected by your plan? Will supplier production or delivery need to change to implement your tactics and actions? Identify the steps you will take to communicate changes to your customers and suppliers. Monitoring your Sales Plan Your sales plan can help you monitor your sales performance and make ongoing improvements.

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Business Owner’s Toolkit #2@2013

Listing your marketing objectives, identify the results you expect your marketing to achieve. These results are measures (numbers) that indicate whether you have achieved your objectives. For example: Objective: By the end of the third quarter, create awareness in the new identified target Measure: Obtain responses from at least 2000 new sales leads After listing your objectives and measures, identify in your sales plan how you will monitor sales results, who will record and check results and how regularly. This information will allow you to check your sales performance over time and adjust your tactics to improve sales results.

*Source: www.business.qld.gov.au/business

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Business Owner’s Toolkit #2@2013

Weekly Sales Report@2013 Sales Manager: ____________________________ Monday: ______________ Time

Prospect Name (Warm/Cold)

Company

Location

Selling Stage/Remarks

Company

Location

Selling Stage/Remarks

Company

Location

Selling Stage/Remarks

Tuesday: ______________ Time

Prospect Name (Warm/Cold)

Wednesday: ______________ Time

Prospect Name (Warm/Cold)

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Business Owner’s Toolkit #2@2013

Thursday: ______________ Time

Prospect Name (Warm/Cold)

Company

Location

Selling Stage/Remarks

Company

Location

Selling Stage/Remarks

Company

Location

Selling Stage/Remarks

Friday: ______________ Time

Prospect Name (Warm/Cold)

Saturday: ______________ Time

Prospect Name (Warm/Cold)

*Your “Warm” Market: These are your family, friends, neighbours, work colleagues and others who know you well. You have existing relationships with these people. *Your “Cold” Market: These are strangers. People you don’t know and who don’t know you. The secret here is to bring them progressively into your HOT market by thawing and warming them up over time. Build the relationship. Invest time and effort. Show them – by your ACTIONS, not just your words – that you VALUE THEM, not just their usefulness to you as a means to an end.

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Business Owner’s Toolkit #2@2013

“WARM” Prospect List No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35.

Prospect Name

Relationships

Company

Telephone

Email

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Business Owner’s Toolkit #2@2013

“Cold” Prospect List No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35.

Prospect Name

Company

Position

Telephone

Email

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Business Owner’s Toolkit #2@2013

SALES PLANNING CHECKLIST 1. SETTING UP THE MEETING 

Responding: Gather right information (Caller and company background; how/why contact firm including referral source; what prospect wants to accomplish; time frame and "agenda" for the next contact) and establish next step Initiating: Sell the meeting, not the service-i.e. use benefits like sharing ideas or industry trends, building awareness or relationships, etc.

2. LIST CLIENT/PROSPECT CONTACTS WHO WILL BE INVOLVED IN THE DECISION PROCESS    

Decision-maker(s) Influencers Users Coach (Sponsor)

3. WHAT DO WE WANT TO ACCOMPLISH AS A RESULT OF THE MEETING (What is our stage in the sales process and our purpose for the meeting?)

4. ACTIONS TO TAKE BEFORE FIRST INTERVIEW WITH CLIENT/PROSPECT                

Gather public information and look for additional information such as trade magazine articles, etc. Call referral source to thank and gain information about "lead". Use additional "network" contacts and other relationships. Find other people who might know about the company (e.g. people, industry) Contact marketing department to assist in gathering information, preparing materials. Find industry contacts to give background information such as trade association director or other current or past clients. Talk with an "ally" (coach?) inside prospect organization if one is available. Send a confirmation of the meeting (and maybe some background material). Call the client/prospect and get their own promotional material such as brochure. Check with local newspaper to see if there are any articles on the company or its people Make sure we know how to get to meeting so we'll be on time. Organize relevant experience. - Prepare reference list including names and phone #'s. (Check before giving out name.) - Gather samples of our work. Organize the "team" considering multiple disciplines, matching "head-count" to prospect numbers, sales and closing skills. (Involve marketing director if available.) Prepare written material as necessary such as a brief agenda, "leave-behind" material, business cards, brochures, articles, visual aids, etc. "Role-play" the discussion with another partner or associate. If a "presentation", make sure how room will be set up and rehearse (use videotape if available)

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Business Owner’s Toolkit #2@2013

5. DEVELOP "SCORECARD"   

What do we perceive the client/prospect wants to accomplish as a result of using your firm's services/assistance-the "Heart of the Matter" What factors/issues (features/benefits/conditions of satisfaction) might be of interest to the client/prospect and shape your firm's services What are your firm's strengths/weaknesses relative to alternative choices and develop possible strategy

6. DEVELOP "OPEN" QUESTIONS—START WITH "B.I.G." QUESTIONS   

"Where do you see (company, department, person) in next three to five years?" "What are your goals for this (deal, company, transaction)?" "What are the biggest challenges you face in trying to achieve these goals?" BUT BE SURE TO INCLUDE A "MUST ASK" QUESTION LIKE o "What advice could you give me about the best way to position for…?" o "When this project is done, what will make you most pleased about our work?" o "What process will the company use to make a decision on this project?"

7. DEVELOP RESPONSES TO OBJECTIONS AND TOUGH QUESTIONS (and who will handle them-use "Ground Rule").

8. BEST WAY TO OPEN THE INTERVIEW  

Ideas for small talk Prepare transition including (1) thanking the client/prospect, (2) expressing our interest in working with them, (3) stating the purpose of the meeting , (4) an easy-to-answer "open" question

9. WHAT ARE POSSIBLE NEXT STEPS WE CAN USE TO CLOSE?               

Meeting with other decision-maker(s). Meeting with superior. Meeting with subordinate. Meeting with user(s). Meeting with others who can influence the decision. Meeting with someone outside of your company and client/prospect-e.g. another client with similar experience/problem, potential "customer", etc. Visit to our office/visit to their office or plant, etc. Second meeting with contact. Meeting with someone else from your firm, an industry or functional expert, potential service personnel, etc. "Demonstration" of product/service—e.g. review sample closing documents, etc. "Survey" to further define situation. Review of client records. Review of previous work efforts—e.g. documentation of past transactions. Talk with those who will be at an upcoming presentation to establish expectations Review draft of engagement letter, proposal, outline of presentation, etc.

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Business Owner’s Toolkit #2@2013

Appointment Checklists

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Business Owner’s Toolkit #2@2013

Company Name: ____________________________________________________ Main HQ & Plant: ___________________________________________________ Core Business: 1. ___________________________________________________ 2. ___________________________________________________ Total Employees: ___________________________________________________ Future Projects: ____________________________________________________ Project Manager In-Charge: _______________________________________ Potential Trade/Services: _______________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ 18 | P a g e


Business Owner’s Toolkit #2@2013

Decision Makers Chairman Name: ____________________________ Tel: _____________ Email: _________________ Director Name: _____________________________ Tel: _____________ Email: _________________ CEO Name: ________________________________ Tel: _____________ Email: _________________ COO Name: ________________________________ Tel: _____________ Email: _________________ CFO Name: _________________________________ Tel: _____________ Email: ________________ Influencers/Users Procurement Officer: ________________________ Tel: _____________ Email: _________________ Technical Officer: ___________________________ Tel: _____________ Email: _________________ HSE Officer: ________________________________ Tel: _____________ Email: _________________ HR Officer: ________________________________ Tel: _____________ Email: _________________ Secretary/Front Desk: ________________________ Tel: _____________ Email: _________________ Introducer/Insider Introducer Name: ___________________________ Tel: _____________ Email: _________________ Relationship with Decision Maker: ______________________ _______________________________

Relationship with Project Manager: Family/ Friends/ Neighbors/ Work Colleagues/Others: _______ Recommended by: __________________________________________________________________ Remarks: __________________________________________________________________________

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Business Owner’s Toolkit #2@2013

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Business Owner’s Toolkit #2@2013

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Business Owner's Toolkit #2 Sales Plan