Empower Your Mortgage Business with B2b Sales Forecasting for Mortgage

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Kenneth G hasty raw in three two one hi everybody can of G hasting here again it's my free video series to help business owners and salespeople to learn a few pearls to help grow your business this is my way of giving back for my many years of experience and sales and sales management and etc so today's subject is near and dear to every company's heart sales forecasting or in the many sales managers perspective and executive sales managers oh my god it's time to sales forecast again so I wanted to call this sales forecasting made easy but it's not necessarily easy that's sort of a relative term but i'll show you how to make it easier and we'll keep it as short as possible sounds fair okay good now my experience when I worked big corporate is smells forecasting usually goes like this the CFO or the board or the CEO have a meeting and they go this year you will sell a million dollars more a billion dollars more or what have you and they pull it out of their cloud so what I want to do to show you a little more realistic way to do it and if you're up against that you can come back around or here if you're lonely company and you're just saying they will I want to do this much more let me show you how to kind of make that more predictable all right let's get into it right still forecasting made easy all right here we go so I hope you can see this I can't see it real while I'm a mini screen over there but but if not at least you can hear it okay so here we go sales forecasting there's five components of having a very predictable sales forecast number one is history because in a way history tends to repeat itself number two is assumptions and that's really that's probably the most important part are good in that detail three is funnels you know okay we'll go into that as well or is what if I hire new salesperson or new salespeople what's the impact five is automation so automating your sales funnel CRM things like that so we're going to step by step here make it quick and easy right ok I'll below please thank you history well sales history is really important and you know and what I do is you know you start out in you look at these numbers on your excel sheet write it and all you're looking at a print out and they'll kind of start blurry and I did this much that month that much this month how do I know what so I a long time ago I just nobody showed me this but I show I came up with a way to help me maybe you do it already but if you don't try this I started graphing it I took last year's history and I took each month sales because you know some of them does it ever go flat or straight up or straight down and oftentimes in your company it's cyclical meaning that in certain months are going to be higher because of certain things like in retail December goes nuts and the end of november goes nuts january got so much so if you know these things ahead of time watch history kind of repeat itself and helps if you have multiple years and just lay the graph over each other you can see the trend so for starters you make assumptions so talk about the assumptions though it's an assumption that means am i assuming nothing is going to change you know if you do the same thing over and over you know expecting different results you know they call that insanity right so what am i changing and how is that going to impact my business that's really what an assumption is or nothing's going to change this also an assumption so for starters I'm going to assume and this for purposes of this demonstration that my monthly cycles will be the same that for whatever reason x company i have here you see goes up and down and up and down so i'm going to assume it kind of does the same thing all right it's an assumption now I come in I say okay what are their assumptions I'm gonna have a new product so for starters all right I'll start graphing based on some things what let's say that I know that I've got an upward trend going here so it's kind of start a little higher next year and a lot of times I just carry this graph right over to there and until i started the same spot so i should be able to do unless there's a big cyclical reason why not and you make that assumption you make that adjustment but probably if you're doing your forecast in December there's not a whole lot going to change suddenly in January other than your your difficult cyclical monthly stuff so let's say what am I going to do to impact it well let's say in January okay I'm going to start here and maybe in March I'm going to start a big marketing campaign so I'm going to follow this in February I'm just going to keep the same space basically on the graph but in March I'm going to make an assumption that i'm going to jump myself because I've got this great marketing campaign that's going to impact the world so now I BAM I come up in March and I come in really high right now am I going to keep that marketing campaign going or am I going to just kind of let it level off so I have to make that assumption so do I let a level off or come back down you know so in this case let's say we're going to kind of let it level off to see so then we're going to follow back down to the same space again be surprised how accurate this can be now after that I've got a that's my major marketing push with product same thing same thing in a different way the difference in the new product is this you're not going to start off selling a kazillion in the first day so they can be a ramp up so that's another assumption you have to say well I'm not going to sell 100 the first month or so one the first month so let's say I come in and of course the new marketing campaign is selling all my products or maybe just that new product but I have to look at it i say i'm going to have an effect but it's so now watch what I do I'm going to take a guess I'm gonna go a little higher for May I'm going to stay a little higher off the forecast here see the gap get a little wider here Juno do the same low water so it's blinding because I'm slowly going up and pardon my drawing but you get the concept so basically the gets going to be you know let's use a half inch just for number sake and maybe the next month's going to go up another eighth of an inch on top of that another eighth of an inch on top of that so it's not give me a sudden take off would rather gradual growth but it's strongly impact your business by the end of the year if you keep that going same concept if I hire more salespeople because if I hire more salespeople and I've got an assumption that one salesperson can sell since ten thousand dollars a month all right maybe I got a couple salespeople each one selling 10,000 a month so be it then I'm like in theory what happens if I hire another salesperson exactly another 10,000 a month what does it happen the first month brand new salesperson walk out there and be equal to the people that are experienced know if you got an onboarding process it's really important is it for the first month don't even really add any sales for them I know it sounds horrible but it's true so what I'm going to do is hire a new salesperson stay in June I'm going to keep the same gap for my marketing campaign I'm not expecting any other growth for july but at august i'm gonna increase my gap another quarter inch or whatever because that sales person get start making a difference and the same thing as I go forward for the rest of the year that's going to help me get more business for the rest of the year so let's say I carry that out next year then I uncle whatever this number is right there and that's what I'm going to guess if I change nothing else that my business will be for that year that's what i call a bottom-up accurate sales forecast not a top down from the boss one of these you know so if you're in that situation come back and make your points with your assumptions and you'll have a pretty pre accurate forecast now one thing that I've learned is you know well let's get into the sales funnel so I didn't talk to funnel bike well no I think what a sales funnel is you got leads over here then they process all the way down to eventually hopefully get the sale or go away so they call the funnel because that's what it looks like a whole bunch coming in here works its way it so sales funnel you say okay I'm gonna get these leads and you can add you can add numbers to that which say if I get a hundred leads probably i'm going to get 20 people that really interested prospects either a number just round round figures don't think of as gospel all right sound of those 20 then we're going to go out and center sales people to talk to those 20 and then maybe my closing ratio is twenty-five percent which would be five so so I take that I say get a hundred new leads probably going to get five new customers right so what happens if i add to my lead I get 200 leads 10 new customers right get 300 leads 15a so on and so forth so good following that final you have to go through your very specific step so what you want to do is look at your best practices what's worked in the past anything any assumption you're making to make it better the future and then at certain times in that final there has to be certain actions so maybe when the lead comes in you sign it to the sales person then they have to contact the potential customer the prospective customer so they get to set an email is going to make phone call it make a personal visit or depends on your company but a lot of times these days is not a female because the global economy can't be everywhere so you kind of send out an email you answer the response through some of the free whatever or set up an appointment where it is they send the email out then then if nothing happens you wait a little while send another e-mail say hey I just follow it up again whatever you does it happens again maybe send a letter okay so you say hey here's your staff here you know throw in some brochures in a bump coming in a little bit later you know I need to lay out what they call a funnel to try to drill it down to turn this into a sale so we know people don't usually buy on the first contact my often ii call say hi I'm Joel from Acme company oh yeah I'll take time good thanks I usually write so they have to get to know yet cetera et cetera the problem is sales people hate to do sales funnels and mate to do reports how many times have you heard from your sales people i don't have time to be sitting here writing all day i need to be out there selling and making you money and me money you know but the problem is there is you need the information you need to know what to do and how they're doing it especially god forbid but not with the company next year for whatever reason if everything's in their head you've lost it all I just starting over with the same customers etc if you've got a good CRM then you know client relationship management or customer relationship management database then whatever information that sales person is put in there this is crm never forgets and i never leaves you know unless you don't pay your monthly bill or whatever so what that means is the information was put in there six months ago by maybe your top sales rep and then maybe they got hit by lightning or something and can't work anymore now what oh well it's there it's still there so now the next person comes along and they just follow up on the same information so they move forward and you'll lose any tracks in there no then even better what if we can automate it what if we can go in and say hey I've got the sales funnel laid out what a 24-7 my computer just did it for me well I can help you with that too that's what we do and some of our company get ahold of me at Kennedy hasty and gmail com we're getting over me on my website Kennedy hasty calm and i'll show you how to automate that's cheaper than you think you can get a certain CRMs that we recommend i can tell you the differences I'll advertise anybody here but you know a decent CRM is going to track you know you're listed leads and customers and such a good CRM is going to let everybody it can be cloud-based it's going to let everybody come in from anywhere and add the information so five the sales guy put something in then I'm the sales manager I want to see what's going on there I can say oh yeah yourselves guys doing this I can run a report so here's everything you did that month so on CEO same thing so good CRM tracks at Battersea RM also does the calendar so what does what they call TASKE so salesperson fires up there you know CRM that morning and they go oh I'm supposed to call so and so this day send a letter to so-and-so this day call this person whatever may be great crm automates all that it just does it for you so you've preset out your emails for instance they what if what if what if they answer right here then click I put them into a certain campaign or drip marketing or whatever it is like you know what if they don't well then I cute I send them another email at this time what if they dump that I 10 so we can automate all that so now people are not spending so much time trying to send email the follow-up we do it one time and we just make it repeatable over time but yet they're still individual it'll look like they're you know so is a form letter or something like that anyway that's probably the best way to do it so in quick review if you use graphs to do your sales forecast that's going to help you like if you make your assumptions are the most important part that's where you need to spend your time what's going to change in Y it's a new product is adding more sales people therefore any more sales and we're doing a marketing campaign or do it nothing and then look into other other factors that may affect you what's the government doing any changes there are there any changes in the industry I'm a big competitor coming up on me am I about to take out a competi you know so looking at all your assumptions and go from there so anyway that's all I have to talk about today I'm still forecasting hopefully that didn't go too long hopefully that was helpful if you like it share it retweet it would like on it whatever and we can keep these going so thank you very much can the Chi hasty signing off take care bye [Applause]