Sales Targets and the Best Next Step
A typical business or sales planning cycle isn’t actually a cycle, it’s a line in the sand day where we get bamboozled with lots of buzz words, a spreadsheet or two and try to predict the future.
While having a goal or sales target is helpful, achieving it combines science and luck.
We can’t help with the luck part, if we could, it would be from the beach somewhere, not in a living room in Otautahi!
So it makes sense that the science part is the only one worth focusing on.
It isn’t about the target as such, as about the game plan on how you’re going to get from here to there.
The best way to do that is to develop a strong plan – if you’re working with known customers, you have a stronger chance of using some assumptions to shape this idea of the future. Knowing their industry, their growth forecasts and expansion or contraction plans can help you map your sales too. For example, if they’re in the retail industry, then based on the current economic conditions it’s likely they’ll have a contraction and there’ll likely be a flow on to your sales too (unless you provide a fixed cost product or service to them). To balance this out, consider what additional products or services you can offer them, and be sure to ensure your existing business is well protected too.
If you’ve a blank canvas a new territory or new customers, then some assumptions are helpful too, namely ones that then show you where to focus your efforts – either geographies, territories, industries or companies that are growing or will be a going concern a year from now. Factor in the high-level economic forecasts, your customer’s stated goals and growth plans, and your own business’ focus and pricing plans.
With all that in mind, take that annual sales target and do your own planning each month, or atleast each quarter, so you’re focusing on the things that can shift the dial. Forecast out where you think you’ll land and apply the effort to smash that target!
The science of sales absolutely involves good planning. Namely as the pace of change now is faster than an F1, so what made sense when you set the plan, may now be complete and utter nonsense, yet you’ll be accountable for ‘the number’ regardless. So own the number, and own and drive your planning process.
If things seem overwhelming or the divide seems massive between today’s results and that target, then don’t focus on that target. Break it down, go back to your plan and take the best next step.
