Seems like the “What was first: Egg or Hen?” question. Production capacity or selling capacity?
And yet the correct answer exists: It matters how much you can produce, but more important is how much can you sell.
That is why financial planning revolves around the sales budget, and all other budgets are scaling on it.
There are many factors that determine the success of your budget, and we believe you will be closer to realistic planning if:
- You rely on the metrics that are known in your industry and in the market to which you are addressing;
- You have a clear marketing budget and an action plan for your sales force;
You know what your lever is, that something that can create marginal sell whether we are discussing complementary products or a specific niche of your services.