How To Set Sales Goals: A Simple Guide To Setting & Achieving Sales Goals
With 2023 just around the corner you focus must be to the future of your business. Learn how to set sales goals to grow your business.
Hi Trish Davies here and the focus for today is goal setting. Specifically how to set sales goals for your business.
Sales goals are one of the best ways to keep your team focused and motivated throughout the year. They provide a clear end point for sales reps, so they can measure their performance against specific targets.
Setting up goals also forces everyone to consider what kind of numbers they need to hit that month, quarter, or year.
However coming up with sales goals isn’t easy. It involves thinking about what needs to be achieved and how best to do it.
Whether you have never set sales goals before or need a refresher on how to do it again, read on for some helpful advice on setting and achieving sales goals in 2023.
How To Set Sales Goals – What Are Sales Goals?
Sales goals are the business objectives that you and your sales team set for the coming months and quarters. They are the quantified targets that you aim for and use to measure your own performance and that of your sales team.
Sales goals are a key part of sales management. They are more than just targets, though. Sales goals are the targets, the plan for reaching them, and the method for measuring whether you have hit them.
When To Set Sales Goals
Setting sales goals at the start of the year is the most common approach to goal setting. It allows you to set and plan ahead, and it gives everyone plenty of time to hit their objectives.
If you are just starting out in sales, though, you might want to hold off on setting goals until you have a better sense of how your product sells and what kind of numbers you need to meet your targets.
Some companies also set quarterly or monthly sales goals, though this is less common. The best time to set sales goals really depends on your circumstances. The important thing is to do it at some point in the year and to do it consistently.
Ultimately the only way to get better at sales is to keep doing it. So the more you can improve each year, the more progress you will make over time.
How To Come Up With Sales Goals
There are a few different ways to go about coming up with your sales goals. The first thing you need to do is consider your strategy.
- What is your sales model?
- What type of product do you have?
- Finally what is your sales process?
Once you have a better understanding of your business, you can start to determine what your sales goals should be. This can be done in a few different ways.
Sales Forecast: A sales forecast is a best-case-scenario based on the trends in your industry and what you think your product could sell. You’ll want to crunch some numbers to come up with your forecast. You can use a sales forecast calculator to get started.
Sales Targets: Another way to come up with sales goals is based on your previous sales numbers. If you have been in business for a while, you will have sales numbers from previous years. You can use those as a starting point to determine what you need to achieve this year.
The Most Effective Ways To Measure Goal Achievement
After the year ends, you and your sales team will want to know how well you all did. You can do that in a few different ways.
Sales Forecasts: If you want a more accurate picture of how you did and where you are heading, you can take your sales forecast and compare it to your actual sales numbers. This gives you a clearer picture of just how close you came to your goal.
Net Sales: The other thing you can do is look at your net sales. You can use your sales numbers and subtract out all the costs associated with bringing in those sales. This way you can see how much profit you made from selling your product.
Strategies For Hitting Your Sales Objectives
There are three main ways to hit your sales objectives:
Improve your sales process: This can include everything from setting a better sales process for yourself to training your sales team on more effective selling skills.
Improve your product: If your product isn’t selling, it doesn’t matter how well you sell.
Improve your sales strategy: If your sales strategy isn’t effective, you won’t be making the sales you need.
How To Set Sales Goals – Bottom Line
Setting and achieving sales goals is the best way to keep sales reps motivated and focused throughout the year. It provides them with a specific target to aim for and lets them know when they have been successful.
If you want to keep your sales team on track, you will need to set some sales goals at some point during the year. The most important thing is to do it at some point in the year and to do it consistently.
The only way to get better at sales is to keep doing it. So the more you can improve each year, the more progress you will make over time.
Trish Davies
Trish Davies International
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