A good sales forecast is what every company wants to have to help them make good business decisions. However predictable sales forecasts can be highly elusive and difficult to achieve. There’s often a remarkable difference between what the sales team says they’ll bring in and what they actually land up bringing in.

Having good picture of your business will allow you to run your business smoothly and to have maximum sales every month of the year. Sales funnel management will allow you to estimate your probability of revenue for a certain period of time. Some do exceptionally well at managing their sales funnels.

Do not confuse a sales forecast with a sales funnel – they are very different. Your sales forecast determines the buying cycle of your customer in relation to your business and then predicts your sales. Your sales funnel examines the overall health of all potential sales in your income stream. It then estimates the probability that there are enough opportunities moving in the direction of closing to ensure revenue flow for a specified period of time.

A robust sales funnel is a good indicator of your long-term deals health. It’s important to keep all the deals in your pipeline current. Be sure you build a system where your data is constantly reviewed. You should be collecting data on
* The number of deals in the funnel
* The number of deals in each sales stages
* Cost of sales
* Size of deals
* Progression of the deals
* Utilization of resources

Next you will need to double check your criteria, which must include:
* Customer issues
* Best practices for your sales process at every stage
* Relationships
* Criteria for decisions

Sales funnels come in a lot of different forms. Some of those opportunities are for a short period but far reaching, while others are for a long period but only a few opportunities finding their way into the flow. There are no perfect sales funnels out there. This mean many deals makes their way into the sales funnel but doesn’t make it to the close of the sale. The key is having good opportunities that will make it from start to close.

It’s important for you to have plenty of deals in each stage of the funnel so that the next stage remains filled as it filters through. This can ensure you have a steady flow of deals in the sales funnel rather than trying to rebound from the feast or famine syndrome.

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