Sales Budgets For Next Year
As your sales teams finishes up the current year, you're probably working on next year's sales budget. Now is the time to evaluate what went right, what went wrong, and what you're going to do to ensure that next year is your sales department's best year yet. Since now is the time that you are adding up costs and projecting returns, it makes sense to spend some time considering different options for developing a more successful sales function.
At the same time, you are probably not the only who has input on your budgeting decisions. Perhaps you have a board of directors, a CEO, or a finance department that must approve your sales budget. Making the decision to try something new may be one thing, and convincing them that it's a good idea entirely another.
Here are some things you should consider when comparing the costs of outsourcing your sales to an in-house sales team, along with a few tips on selling the idea of outsourcing to sceptical decision-makers in your company.
Think in Comprehensive Terms
Yes, this is the sales budget you're talking about. So you can add up all the costs you're currently incurring for sales in one column, and compare it to the quote your sales outsourcing company is giving you. However, don't forget that the sales outsourcing solution you are considering will likely also take the place of current functions in other departments.
Typically, sales outsourcing greatly reduces the burden on your HR department, since the sales department is often the department with the highest turnover. The same goes for recruiting, for the same reasons. Other costs that may be reduced or eliminated by moving to an outsourced sales model are those associated with running a physical sales office, such as office rent, IT support, technology and licensing. Your outsourcing company may also provide sales support in forms that you may be currently covering by other means.
Pro Tip: Make a list of all the current costs that will be replaced by your sales channel partner. Make it easy for the decision makers who review your budget see the big picture of how costs compare.
Cover Incoming as well as Outgoing
Yes, it is important to compare the costs of different ways of doing business. But also consider the ROI of your investment. Your sales outsourcing company likely has experience running campaigns very similar to the one it is offering to run for you, and should be able to provide you with a good estimate of the projected ROI for your initiative. Typically, this ROI will be higher than an in-house effort, simply because a sales outsourcing company's core competency is sales.
If you need concrete proof for your in-house decision makers before persuading them to make the switch to sales outsourcing, consider building an outsourced sales pilot project into your budget this year. A pilot program can support and augment your current sales efforts, while giving you a good idea of how successful sales outsourcing will be in your market. Once you have the numbers to back it up, it will be much easier to make a case for sales outsourcing next year.
Pro Tip: Starting out with a beta test pilot program can pave the way for getting decision makers on-board with a full sales channel solution in the future.
If you need help tailoring a sales channel program to your specific budget, Netpique sales professionals would be happy to assist you with financial models for your company.