Setting targets for your company is very important, it leverages the morale of people at the company. The happens when targets are set and when they are met as well.
Before setting your targets you need to be able to measure them. Or more precisely you need to have your own set of KPIs. In general, targets needs to be SMART (Specific, Measurable,Achievable,Realistic,Time Bound). In this blog I will provide you with hints on setting sales targets(revenue KPI):
- First you have to analyze your last year KPIs and look for peak times sales and off-peak sales for each month, then plan how to better control off-peak times, making good sales at them and plan for the best use of peak times.
- Estimate how much sales can you make per month or even per week based on your previous history. Decide how much money you want to make next year?
- Ask your self, Can the market support my growth rate?
- Plan for recruiting sales reps and forecast how that will increase your sales based on revenue per rep in the last year.
- Do “best case”, “worst case” and “most likely case” analysis and use the “most likely case” to set your sales targets. But it’s also worth taking the time to come up with realistic numbers for the two extremes (best and worst cases).
- Divide out target responsibilities if you work as a team. Make sure everyone has a set of individual targets, figures or key performance indicators so they know exactly what they are and when they’re expected by. Ensure you agree this with them in advance so both sides feel it’s achievable and realistic.
- Monitor targets with your team monthly.
- Remember that the secret to fuel fast growth is focusing on creating a company culture that puts sales at its very heart. Your company should keep sales targets realistic and achievable so its reps can reach their goals and stay motivated, and it celebrates strong performance. And at the last minute of the celebration it sets the metaphorical bar higher.
- Make sure you have a “why” statement for the targets that’s what derives you to achieve that goal (it’s not alway about money).
- You can even find more tips here
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