Question

Describe in outline form the process of sales cycle testing including which business forma you would like use

Answer 1

ANSWER:-

The sales cycle in a business refers to the set of processes that begin when a customer buys goods or services and ends when the company receives complete payment for the purchase done by the customer. As part of the year-end audit of a company's financial statements, external accountants test sales transactions and the internal controls over those transactions to ensure that the company is not materially misstating its revenues or accounts receivable.

An auditor tests the controls the company has set up for the sales cycle to determine how strong and reliable they are. If they are strong, the auditor can reduce the amount of transaction testing he must do. Common internal controls over the sales cycle include numbered sales invoices, purchase order authorization over a certain limit and authorization over receivables write-offs. The auditor selects a random sample of transactions and examines the related purchase orders, invoices and customer statements. If the control being tested is numbered sales invoices, for example, the auditor ensures that all numbers in a section are accounted for and that none are missing. If the control is that all purchase orders are approved by management, the auditor checks for a manager's signature on each document. If control errors are found, the auditor increases the amount of transactional testing he must do.

Although all sales cycles vary, most will have the following common elements:

• Prospecting

Finding new prospects to fill the hopper is a vital first step. A good start to prospecting is to define what a good prospect is like for your business, and think about how you could approach such a prospect.

• Initial Contact

Different approaches work better for different industries. Often times, the first contact is either a phone call, an email or even physical mail.Offering help, support and information is likely to be more successful than a hard sell.

• Identify Needs

You can only determine whether your solution is a good fit if you truly understand your prospect’s needs. Equip yourself and your sales reps with the questions and resources they need to uncover the right information.

• Present Offer

This phase of the sales cycle is critical. You need to present your offering as a solution to your prospect’s needs. Tailor your proposal to the information you have gathered in the previous phases of the sales cycle.

• Manage Objections

Understanding the likely objections, such as price and timing, and equipping your sales team to handle them appropriately will increase your win rate and speed up your sales process.

• Close a sale

In this phase, you will have to drive the deal to close and get the prospect’s signature on the dotted line. Mastering the different techniques for closing takes both training and experience