Why does an online store need a sales plan?

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Selling through an online store is a real art, but even this art must adhere to a plan. In order to ensure your business's constant growth in profits, it is necessary to organize the work clearly, calculating everything down to the smallest detail.

Creating a sales department and a well-written plan is a how overseas chinese contribute to business in the usa guarantee of successful work. However, a plan should not be confused with a forecast, since the former is based on strict financial calculations, and not on your desires. The data recorded in the plan is based on specifics and analysis.

How to correctly draw up a sales department plan and why is it needed?
There are special methods that allow you to make a calculation that is as close to reality as possible.

Despite the real benefits, only 20% of small businesses make a sales plan. The rest ignore it. Or even worse, they make it just for show.

With large companies, it's the other way around. They approach the issue of how to properly draw up a sales department plan with all seriousness. And small companies should follow their example.

1. The sales department plan is a goal.

It reflects your aspirations. The company should always have a benchmark to strive for.

2. The sales department plan is about opportunities.

How do you know what else a team is capable of without challenging them? What are the capabilities of the employees? The work is going well now, but can it be done even better?

This is the bar for a company that is striving to rise. If every manager has an annual plan that he must fulfill in front of him, he will give his all so as not to disappoint the management and not to let the whole company down.

But the tasks facing him must be realistic. We will return to this topic later.

Why is it important to create a sales plan?
3. The sales plan is motivation.

The plan for the head of the sales department is an opportunity to unite the team in order to increase profits.

4. The sales plan will help you analyze and draw conclusions.

Any sale, including sales through an online store, requires a comprehensive approach to the process.

Creating a clear plan for sales staff will motivate them to work as productively as possible. In addition, a clear plan will help the company pay attention to the weaknesses and strengths of the work and correct the situation.

Let's say your team hasn't met the monthly plan. In order to find the reason, you can call an emergency meeting and work on the mistakes together.

5. The plan allows you to predict losses.

Daily sales analysis will help you not to bring the situation to a critical point and make instant decisions. Let's say that in order to fulfill the plan for the year you need to earn about $3,000 every day, but you have been making $2,800 for several days now.

This means that every day the work is at a loss. By analyzing the situation with the help of the plan, you can find mistakes and quickly correct them, avoiding a crisis in the company.

6. Creating a sales department plan disciplines the team.

It will help you to create the right strategy for the further work of all employees, motivating them to strive for serious contracts.

Classification of sales plan by time
Each of them has its own subtleties, but they all serve one single purpose - increasing profits. How to make a plan for the sales department for the next month? And for several years ahead?

Example of an individual sales plan
Short term plan

A monthly rate of a sales manager is considered short-term. Some make plans for two weeks, because selling goods through an online store requires constant monitoring. Some stores must make plans for a shorter period. Here, everything depends on the specifics of the business.

Why do we need short-term plans?

Monitoring the progress of the annual plan . It is always easier to prevent losses, correct mistakes and return the company to a profitable direction at an early stage.
Analytics . With a short-term plan, you can record your profits every day. This way, you can create a chart and see the spikes or, on the contrary, the drops in sales.
Medium term plan

This plan is usually prepared for a year or a quarter. It serves as a motivator and guide for departments and branches.

Each of them can be longer than short-term ones. Here everything depends on the circumstances (revenue from holidays always increases). There are various algorithms for creating a medium-term plan, thanks to which it will be as close to reality as possible.

algorithm_for_compiling_annual_sales_plan
Long term plan

This is a perspective that confidently looks into the distant future of the company. Such a plan is drawn up for a period of 3 or more years, depending on the goals and objectives set.

Classification by efficiency
Minimum plan . It is the lower limit of figures, crossing which the company will suffer losses. As a rule, this plan is drawn up if difficult times come for the organization during this period. It is necessary to work at the lower limit of your limits, but not in the minus.
Main plan . This is the main income plan for the next month, within which the company must definitely go into the black in order to earn not only for employee salaries, but also for useful development. For example, for buying advertising or paying bonuses to employees.
Maximum plan . A plan that is almost impossible to fulfill, but we know that nothing is impossible. Such a plan will serve as an excellent incentive for better performance of work, and beyond it there must be good bonuses that sales managers will strive for.
Classification by addressability
Not only employees, but also all structural units participate in the implementation of the plan:

Individual plan for sales manager . Each employee should receive the same plan regardless of their abilities. Different plans are made only if managers work in segments with radically different amounts of income.
sample_arrangements_for_sales_plan_for_managers
Creating a plan(s) for the sales department . It is made up of individual plans of department managers, then multiplied by a factor of 1.1. This is done so that the department manager can motivate other employees to work effectively and productively.

General company plan . Intended for the entire company and employees in general.

Mission accomplished!

Most managers in modern business are faced with fundamentally impossible sales plans. At the same time, the indicators of such plans are constantly increasing. In the end, this scheme will demotivate employees, because if it is still impossible to reach the goal, then why try? If it is impossible to fulfill the plan and receive bonuses, even if you put in incredible efforts 24/7, then why strain yourself when you can just work at your own pace without any expectations?

That is why it is important to set goals that are high, but at the same time close to reality, which can really be achieved if you work really hard.