In most firms, the biggest driver of cash-out and cash-in is the sales cycle. Accounts payable accrue during selling, and accounts receivables are largely determined by what’s sold, how fast, and at what price. But the sales cycle is the result of other activities: opportunity selection, deal size, and win rate. Let’s look at each component and the managerial requirements:
OPPORTUNITY SELECTION: QUALITY OVER QUANTITY.
When asked to double revenue, most managers seek twice the leads. But effective sales models operate as a system. Improvements or failures in opportunity selection are felt throughout, so emphasize quality over quantity.
Prospects differ in their product and service preferences and their response to marketing actions. Some require more sales calls; some buy in operations-efficient volumes, and others with
