As we move out of the current COVID-19 crisis and into an uncertain economic future, it is so important for businesses to understand their current position.
A clear, reliable view of your true position is absolutely key to decision making and maximising effectiveness. However, undoubtedly the biggest challenge during this time is the need for predictable income.
The starting point is understanding your current position.
Many businesses are focused on creating as many new sales opportunities as possible, without having a real understanding on how these might impact the current trading requirements. In other words, there is little value in draining time and resources pursuing opportunities unless you are clear on how they will benefit financial performance.
The opposite can be true, of course. It is possible to have an overly optimistic view of the future, and in doing so reduce the emphasis on the need to generate new opportunities when in fact this is a key requirement.
To determine which situation you are in, the starting point is getting visibility.
How can we achieve real visibility?
First, a business needs to get their live data on the board.
Remove large, early-stage opportunities which provide a false sense of comfort. Cut the sales pipeline right back to see what it looks like when you only include opportunities which are being actively managed. It might look bleak, but this is the baseline position you should build from.
You must also embed a common, unambiguous sales language within the organisation, so everyone understands where any live opportunity sits.
Having real visibility of current and future sales position brings many benefits. It connects sales, finance and operations to the company’s Profit & Loss while focussing on activities which produce results. This means the whole business can successfully plan capacity requirements, delivery schedules and stock levels.
Once you have achieved visibility you can use your live opportunity bank as your guide to make decisions, prioritise effectively and grow your business.
The importance of visibility is paramount. It is the principle upon which you will make informed business decisions and allocate your resources.
Get Visibility with BMC’s Sales Visibility Service
BMC’s Sales Visibility Service equips you with the principles you need to achieve real sales visibility.
Check out our next article which focuses on another management practise which is key to success for any SME – understanding your customers.
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