A sales forecast is an essential tool in managing any business. It is an opportunity to identify and plan for any problems or opportunities that may arise in the coming year.

Some people believe that forecasting takes training, maths and advanced qualifications, whilst others have suggested that forecasting is mainly educated guessing or a process of trial and error. Either way, a sales forecast is a prediction based on past sales performance and expected market conditions.

There are a lot of desktop software and Web-based services built to generate sales forecasts, but here’s a simple example of how to calculate your sales forecast:

last ­year's annual sales + (last year's annual sales x rate of inflation) = next year's sales forecast

[source: Virtual Adviser Interactive]

There are a number of factors that can potentially affect your sales forecast, such as economic downturns, employee turnover, changing trends and increased competition. It’s also easy to be over-optimistic when planning ahead. However, you could calculate several forecasts for different outlooks and compare them, for example: pessimistic, optimistic and realistic. This may make it easier to prepare for the best and worst case scenarios.

The important thing to remember when forecasting sales is to have a defined focus and set strategic objectives before you start. Try out different methods of measurement when you begin. Once you have a realistic and working forecasting solution in place, it will be easier going forward.

There’s no excuse for not planning or forecasting, especially in the current economic climate. Your sales forecast is a vital measurement of your company’s health and sets the standard for expenses, profits and growth. It’s important to plan ahead, as an accurate sales forecast can inform every other aspect of your business. The overall result could be a business that runs more efficiently, saves money, increases profit and improves customer service.

What are the main challenges you face when forecasting sales?

Hays Sales UK are experts in all areas of sales recruitment. To find out more about how our highly skilled consultants can support you, please visit our website.


“If you are in business, you are in commission sales. When your product sells, you make money. When it doesn’t you don’t.” – Bob Burg 

Commission is an important part of a salesperson’s life, but which type of plan is best for you? And which will allow you to take home the highest reward? No sales commission plan fits all salespeople or all companies and whilst the opportunity is available, there are no guarantees when it comes to achieving financial success through commission. It takes self-discipline and hard work.

There are 3 basic salary/commission plans:

1. Salary Only: Usually used when a new salesperson is brought into an organisation.

With a base salary, you know you’ll always be taking home a steady amount. This type of salary plan mainly attracts security-focused sales people or those who are new to the industry. It’s easy to administer but may not motivate salespeople to reach as high as they can.

2. Straight Commission: This is a great way to motivate competitive selling behaviour. 

Straight commission usually offers high commission rates, more freedom and more opportunity. If you’re a highly motivated performance hunter, this could be ideal for you, but beware, earnings and job security can be unstable if you don’t hit your targets.

3. Combination Sales Commission: A basic salary with an incentive based on sales made. 

Potentially the best of both worlds – a stable salary with added rewards. Whilst this is a popular choice as it provides the security of a salary but also offers a little extra to strive for, a combination plan can often come at a price – a significantly lower commission rate.

Salespeople need to be motivated and focused in order to make a living, whether on a basic salary or a high commission rate. If your commission plan isn’t right for you, then it might be time to recalculate to see which will give you the greatest reward and look for a new opportunity which will accommodate your needs.

Which commission scheme do you prefer to work with and why?

Hays Sales UK are experts in all areas of sales recruitment. To find out more about how our highly skilled consultants can support you, please visit our website.


Key account management has been one of the most important innovations in B2B selling over the past two decades. The number of companies who now wish to introduce a key account management system continues to increase. The appeal of this approach is clear; more sales, higher profits and increased customer satisfaction. However, for key account management to succeed, it is vital to find the right person for the job.

The best salespeople will often not make the best key account managers. The skill set required for key account management is slightly different and the role is often more suited to technical people and project managers. The required skills include financial, consultative, planning, interpersonal and influencing skills. While salespeople will often focus on their immediate targets and commission, key account managers need to focus on keeping their clients satisfied in the long term.

A successful key account manager will also need a high level of commitment to the role. You need to spend a lot of time with your client, getting to know their needs and the business issues that matter to them. You should be an advocate for your client within the company as much as you represent the company to your client. This requires a strong ability to influence others in order to keep both parties happy.

Finally, you need to make sure you have the support of your company and that processes are integrated correctly. For a key account management programme to succeed, organisational change will be required. The programme will need to be closely reviewed on a regular basis, and management will need to understand that you should not necessarily be judged by the same metrics as other salespeople. This can be a difficult balancing act, but can be extremely valuable for the company and the key account manager if implemented correctly.

Are you a successful key account manager? Find out how our highly skilled consultants can help you in your career by visiting our website.


Recent good news in manufacturing suggests that this will be a good year for the industry. Chris Loveridge, Specialist Technical Sales Consultant at Hays, shares his thoughts on what will happen this year. An expert in all aspects of technical sales, including manufacturing, engineering and industrial markets, he would be happy to hear from anyone interested in this post by email (Chris.Loveridge@hays.com) or on LinkedIn: http://uk.linkedin.com/in/hayssales

There have been a few pieces of good news for manufacturing sales in the past few weeks. According to a recent YouGov survey, “Your Outlook for 2013 – a business survey”, over half of UK manufacturers are confident about 2013 prospects and two fifths expect to see an increase in sales this year.

The positive feeling from UK manufacturers is supported by the fact that manufacturing hit a 15 month high in December, according to the CIPS Manufacturing Purchasing Index. The general feeling is that the economic recovery is gaining momentum, and that manufacturing will clearly play a big part in this. The hope is that manufacturing can be a catalyst for an investment-led recovery.

However, the YouGov survey also showed that 57% of UK manufacturers perceive Eurozone economic concerns to be the biggest threat to their business in 2013. The ongoing uncertainty continues to have a negative effect on the market. But while this is a concern, there is still potential for companies to thrive, particularly by focusing on non-EU markets and particularly Brazil, Russia, India and China.

The general trend is positive for manufacturing and we think it will be a big year for UK manufacturers. This is great news for manufacturing salespeople, meaning they should be able to capitalise on this and make more sales this year. It is also creating some fantastic opportunities for experience manufacturing salespeople, particularly those with strong experience of relationship-building.

How will you ensure that 2013 is a successful year for you?

Hays Sales UK are experts in all areas of sales recruitment. To find out more about how our highly skilled consultants can support you, please visit our website.


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