KBDi Affiliate Member, Nina Slade of Prymore Pty Ltd, is a business consultant with a primary focus on the cabinet making and kitchen industry. With almost two decades of experience in the industry, Nina works with business owners to minimise their business stresses and maximize their success. In this article, she shares some great strategies for setting new sales targets in the new year…
Does your business operate on a calendar or financial year?
If it is a calendar year (Jan – Dec), then sales targets for the company and individuals need to be set now!
Many businesses actually don’t have set sales targets. In order to be successful or improve your business, sales targets help you:
- Monitor the performance of your business and individuals
- Compare last year against this year to ensure growth is continuous
- Provide incentives and a goal to yourself and team members
- Determine if you should spend money on items such as new software package, website etc, or need to pull in the purse strings before it is too late
Setting sales targets is not hard but to some people, it is a task that they just can’t get their heads around. Here are some tips to help you pull the right information to start the year off on a great path:
- Print out or obtain from your Accountant, what you did in Sales for the full year and per month for last year (2017) and the year before (2016). This is now providing you with realistic data to help you set realistic targets
- Plot the data onto an Excel Spreadsheet or even on a piece of paper. Lay it out as follows:
- Look for monthly trends and note these down – ie: January is always quiet, August & November are big months etc
- Add another line to the chart and start plotting down this year’s targets based on
- Seasonal trends
- Potential client work
- Expected growth in the company (ie: new machine, new employee to enable to take on more work)
- Lifting the targets each year to motivate and create hunger amongst the team to achieve a goal
It should look like this:
2018 Total Sales Target = $1,490,000
2017 Total Sales Achieved = $1,141,000
There is no point putting in targets that are unachievable as it just defeats the whole purpose. You and your team members become defeated & depressed. For example: trying to achieve $80k in January will never be achieved if historically you are only open for 10 working day and average around $25k.
Lastly, you need to monitor and review this data every month. Sales targets can be adjusted if unforeseen circumstances occur in the business. These are not set in concrete but are simply providing a tool for you to be in control of your business and be able to monitor the activity.
This year, be organised and make great business decisions based on being proactive not reactive!