master hogan copy 2012 update effective sales management planning forecasting budgeting
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04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Effective Sales Management:
Short and Long-term Planning, Forecasting,
and Expense Budgeting
Why are we here today?
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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John J. Hogan, Ph.D., CHE, CHA, MHS
A career hotelier and educator, with 35 years experience
Industry certified; past recipient of the American Hotel & Lodging Association’s Pearson Award for Excellence in Lodging Journalism, as well as operational and marketing awards from international brands
Author of weekly columns for a number of global online services - published more than 400 articles and columns Co-authored LESSONS FROM THE FIELD – a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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John J. Hogan, Ph.D., CHE, CHA,
MHS Clients are associations, international brands, management groups, convention bureaus, academic institutions Taught college level courses at three different universities over a 20-year period, while managing with Sheraton, Hilton, Omni and independents
Created/developed a blended learning system as Director of Education & Cultural Diversity for world’s largest hotel chain Has conducted an estimated 3,200 workshops and classes in career
Expertise and Research Interest includes: 1. sales management and training2. turn-around and revenue management3. professional development4. customer service5. leadership and executive education
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Agenda
1. Mapping out Your Sales Plan2. Preparing and Revising Your Sales
Forecast3. Aligning Your Expense Budget With
Your Forecast and Sales Plan4. Practical Approaches to Opportunities
in the Market
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Mapping out Your Sales Plan
Acquire & use good selling knowledge
• Finding out who your customers are• where they are coming from• how they came to select your
business/product• why they use your business/product• how often will they need you and how
much they spend
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Mapping out Your Sales Plan
Plan A Good Market MixIt is extremely hard to be all things to all people all the time, which means knowing your proper customer base.
While one does not want to turn away potential, understanding the mix of business reflects how much of what type of business you're doing.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Mapping out Your Sales PlanTry New Things
• FACT: most successful entrepreneurs would not be where they are today if they didn't take a chance and try new things.
• Come up with new ideas to promote business and don't be afraid to put them into action.
• Examples -
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Preparing & Revising Your Sales Forecast
Know Your Competition – specifically your direct competitors.
A thorough knowledge of the competition can help you
size up your strengths/weaknesses and determine where you can compete the best:
is it location, price, size, product, service or amenities?
The idea, of course, is to sell your positives and to expand your market share profitably.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Preparing & Revising Your Sales Forecast
Research & qualify your multiple price policy
Understanding/measuring selective discounting.Do you know which special rates are generating business for you?Periodic reviews of all rates help establish the multiple-rate policy that's right for you. 3rd party sites – evaluate if they help your profitability and/or cash flow.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Preparing & Revising Your Sales Forecast
Sell Aggressively! • Aggressive and assertive are not synonyms.
• One means hard hitting and the other confident – in challenging economic times, those professionals in sales must have some of both attributes to book the business.
• One can be aggressive while still being friendly, credible and sincere.
• Being tenacious, following up and ensuring customer confidence all add up to success.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Aligning Your Expense Budget With Your Forecast and Sales Plan
Re-examine all operating budgets• Annual budgets usually prepared 6 months
before the beginning of any year in advance, which often means projections could be as far out as 15-18 months.
• While most of us projected potential trouble in 2009, few of us anticipated the international financial meltdown that unraveled in late summer/fall 2008.
• It is time to re-evaluate all operating budgets immediately and determine planning for action steps that need to be taken NOW.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Aligning Your Expense Budget With Your Forecast and Sales
PlanInitiate aggressive, but realistic goals
for achieving specific expense savings
• Link to changes in the operating budgets you have just re-forecasted.
• There will be revenue lines projected at lower levels and the expenses associated with them should be identified.
• Zero-based budgeting – positives and negatives
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Aligning Your Expense Budget With Your Forecast and Sales PlanCompetitively re-bid all significant vendor
and supplier contracts• It is not being suggested to break contracts, but
every company in every industry is feeling strained resources these days.
• Discussions on terms, pricing, quantities, payment schedules and other factors are all items that should be analyzed short term and ongoing.
• A wide range of services and products, including utility purchasing options that might offer incentives or access through energy cooperatives.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Practical Approaches to Opportunities in the Market
Evaluate carefully product/guest amenities
• Straight forward decision if you are independent
• If part of a brand, there are agreed upon standards that perhaps may be delivered in alternate ways.
• Chain management may be open to options if the guest experience is not diminished.
• Consider approaches that are green in nature and a service that is optional rather than wasted or unused products that requires staff services
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Practical Approaches to Opportunities in the
Market Examine every part of your credit policy
• Credit is an essential part of the business cycle• The current global financial crisis is at least
partially mired due to credit snafus. • Are you in fact are lending the use of money when
extending credit?• What is your proper balance when considering the
use of credit as a potential feature? • Care must be used when considering credit – even
large companies have been known to renege on credit yet it can be an important point of difference.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Practical Approaches to Opportunities in the Market
Plan and monitor Monthly cash flow (forecasted and actual)
• Too many entrepreneurs new to an industry disregard the difference between cash flow and profits
• Even some veterans do not fully appreciate the value of monitoring cash flow.
• While any business needs both to survive, cash flow is the more indispensable of the two.
• Cash flow basically refers to the flow of cash into and out of a business over a period of time - what is needed to keep the doors open while trying to make a profit.
• Without adequate cash, one cannot pay suppliers, taxes, meet payroll, market itself or operate professionally. If an adequate cash flow is not maintained, there is the very real danger of bankruptcy or going out of business.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Practical Approaches to Opportunities in the Market
• Planning & monitoring inflows/outflows of cash = top priority
• Planning ahead for seasonal fluctuations and unexpected emergencies allows for dealing with challenges and at least partially reduces stress.
• Knowing where you are in cash positioning allows you to also maintain more open and constructive relationships with suppliers, banks, staff and business partners.
• By monitoring cash, you can better anticipate potential problem spots & conceivably lessen or avoid a liquidity crisis.
• In this type of economy, the potential for shortfall in business levels is real, which means cash flow will likely be diminished.
• Being able to deal with this underperformance in advance will definitely help bridge the challenge.
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Maximizing Involvement and Results
RecapMapping out Your Sales Plan
Acquiring and Using Good Selling Knowledge Planning a Good Market Mix Trying New Things
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Maximizing Involvement and Results
RecapPreparing and Revising Your Sales
Forecast
Knowing Your Competition and Specifically Your Direct Competitors Researching and Qualifying Your Multiple Price Policy Selling Aggressively
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Maximizing Involvement and Results Recap
Aligning Your Expense Budget With Your Forecast and Sales Plan
Re-Examining All Operating Budgets Initiating Aggressive, but Realistic Goals for Achieving Specific Expense Savings Competitively Re-Bidding All Significant Vendor and Supplier Contracts
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Maximizing Involvement and Results
RecapPractical Approaches to Opportunities in
the MarketCarefully Evaluating All Amenities and Packages in Your Offerings Examining Every Part of Your Credit Policy and Practice Planning and Monitoring Monthly Cash Flow (Forecasted and Actual)
Contact InformationMembership and Learning Resources
www.HospitalityEducators.com John.Hogan@HospitalityEducators.com
Speaking Engagements, Hospitality Consulting, Training, Expert Witness, Litigation Support www.HoganHospitality.com
John@HoganHospitality.com
Sites Under Construction for Online Learningwww.HotelTrainingToYou.com;
www.HospitalityTrainingToYou.com
602-799-5375 Direct Line
Dr. John Hogan, CHA CHE CMHSCopyright 2012 Dr. John Hogan, CHA CHE CMHS All Rights Reserved
04/09/2023 Copyright 2012 All rights reserved Dr. John J. Hogan
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Questions/Comments?
THANK YOU!
John J. Hogan, Ph.D., CHE, CHA, MHS
john.hogan@hospitalityeducators.com
602-799-5375
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